FINAL WORD
Central banks can adopt blockchain to drive digital currencies and inclusion
Central bank digital currencies , can enhance financial inclusion and reduce cost of remittances , and according to recent research , these payments are projected to surge from $ 100 million this year to $ 200 billion by 2030 , says Dr Ullas Rao at Heriot-Watt University Dubai .
Financial inclusion , a cornerstone of economic development , has long been a global challenge . In the Middle East , where economic landscapes are diverse and dynamic , the quest for financial inclusion has taken an innovative turn with the rise of financial technology , or fintech . The intersection of technology and finance is transforming the banking sector and , more importantly , providing unprecedented opportunities for financial inclusion in the region .
According to the latest MENA Financial Inclusion Report , the financial inclusion rate in the region was 20 % by the close of 2019 . The UAE boasted the highest financial inclusion rate at 46 %, with Bahrain following closely at 39 % and Saudi Arabia at 31 %.
Fintech innovations are reshaping the banking and finance landscape across the Middle East . Mobile banking , digital payments , and blockchain technology are at the forefront of this transformation .
Mobile penetration rates in the region are impressive , exceeding 100 % in some countries , providing a fertile ground for the adoption of mobile-based financial services .
Notably , the UAE leads the way with a robust fintech ecosystem and significant investments in digital infrastructure . Statista report states that the UAE boasts a smartphone penetration rate surpassing 96 %.
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