The Role of Central Banks Digital Currencies (CBDCs) in Promoting Financial Inclusion in the Economies of Developing Countries

Abstract

This thesis aims to highlight the role of Central Bank Digital Currencies (CBDCs) in enhancing financial inclusion in the economies of developing countries, through examining the reality and analyzing the impact of adopting these currencies on the unbanked segments. It focuses on The Bahamas and Nigeria. The study relied on a descriptive and analytical approach, reviewing relevant theoretical frameworks and analyzing empirical data related to financial inclusion indicators after the implementation of digital currencies in both countries. The findings concluded that Central Bank Digital Currencies contribute to expanding access to financial services, reducing transaction costs, and enhancing trust in formal financial systems. Both 'eNaira' in Nigeria and 'Sand Dollar' in The Bahamas demonstrate how specially designed digital currency solutions can respond to local economic and structural challenges. The study recommends that developing countries view Central Bank Digital Currencies as a strategic tool to achieve inclusive growth, emphasizing the importance of regulatory readiness and promoting digital culture. And developing the infrastructure to ensure the success of the integration process