CBDC usage will increase in Middle East & North Africa

Significance Many Middle East and North African (MENA) countries view CBDCs as a solution for a host of money-related issues and, led by the UAE, are at various stages of CBDC development. Riyadh’s joining mBridge marks an important step towards the introduction of CBDCs for cross-border payments. Impacts For poorer MENA countries, CBDCs could make banking and other financial services more widely available. Cross-border CBDCs such as mBridge should reduce payment costs and delays for oil exporters and eventually reduce the role of the US dollar. CBDCs could encourage more competition and innovation among domestic payment service providers by easing market entry.