FINAL WORD
Central bank digital currencies
The rise of digital wallets and mobile banking applications has enabled previously excluded populations to access financial services conveniently . According to ACI Worldwide ' s 2023 Prime Time for
Real-Time report , transaction volumes in the Middle East are expected to surge from $ 675 million in 2022 to $ 2.6 billion by 2027 , demonstrating a compounded annual growth rate , CAGR of 30.6 %.
Technological advancements are not merely altering how traditional banking operates ; they are crucial in promoting financial inclusion . One noteworthy example is the use of blockchain technology for remittances . The Middle East is a hub for migrant workers , and remittances constitute a substantial part of the region ' s financial flows . for low-income individuals who rely on remittances for their livelihoods .
The International Monetary Fund , IMF is developing a platform for cross-border transactions using central bank digital currencies , CBDCs . CBDCs can enhance financial inclusion and reduce the cost of remittances . According to recent research by Juniper , payments conducted through CBDCs are projected to surge from $ 100 million this year to $ 200 billion by 2030 , marking a remarkable 260,000 % increase over the next seven years .
Professionals in the industry also view Fintech as a significant factor in broadening business prospects for small and medium enterprises , SMEs . This is achieved by facilitating access to credit at competitive rates through established financial markets .
Blockchain-powered platforms have streamlined the remittance process , reduced costs and increasing the speed of transactions . This is particularly beneficial
The establishment of formal inclusion , coupled with a well-established and resilient Fintech ecosystem , would also open avenues for cross-border market
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