Improving financial access and inclusion: Prioritizing CBDC implementation to provide accessible and affordable financial services to the unbanked and underserved populations in remote areas. Enhancing cross-border trade and remittances: Focusing on reducing transaction costs and increasing the efficiency of cross-border payments to facilitate regional trade and support economic development. Strengthening financial stability: Promoting the use of CBDCs to address challenges such as currency volatility, inflation and the prevalence of informal economies. 2.4 Middle East and North Africa The Middle East and North Africa (MENA) region has several countries actively investigating the potential benefits and challenges associated with CBDC implementation. One of the notable CBDC explorations in the region was a joint effort between the United Arab Emirates and Saudi Arabia called Project Aber. Launched in 2019, Aber aims to facilitate faster cross-border transactions and strengthen both countries’ positions as global financial hubs. This joint project reflects the regional cooperation and shared vision for advancing digital currencies in the MENA region.33 The United Arab Emirates is also a key member of the cross-border mBridge project. The below features and priorities are distinctive to the MENA region. Considering these factors can help central banks tailor their CBDC designs to meet the specific needs and challenges of the MENA region. MENA CBDC considerations TAB L E 4 Consideration Description Technological infrastructure Developing and upgrading the necessary technological infrastructure is a key consideration. MENA countries aim to build robust digital payment systems that can handle large transaction volumes and operate reliably. Digital payments adoption is quite high, which may facilitate the adoption of CBDC. Regulatory compliance MENA countries have diverse regulatory frameworks, and compliance is a critical consideration for CBDC implementation. Developing CBDC systems that align with regulatory expectations and enhance transparency is a priority for the region. Cybersecurity and data privacy Given the increasing digitalization and potential cyber threats, ensuring robust cybersecurity measures and protecting user data privacy are paramount for CBDCs in the MENA region. Implementing state-of-the-art security protocols and encryption techniques is a priority to safeguard the digital currency ecosystem. Cultural and religious considerations The MENA region has diverse cultural and religious norms that may influence payment behaviours and preferences. Taking these factors into account during CBDC design can help ensure acceptance and adoption among the population. Digital transformation and innovation: The MENA region prioritizes innovation and is investing in advancing the digital transformation of payment systems and any CBDC would need to enhance the current payment system offerings. Driving economic growth: Countries in the MENA region are very diverse in terms of advancement. However, digitization is an important goal to accelerate their economic growth and advancement by providing digital payment solutions that will lead to greater economic opportunities. Fostering regional economic integration: The MENA region prioritizes facilitating cross-border trade and investment and strengthening economic cooperation in the region. CBDC would need to enable improvements in this regard. MENA CBDC priorities: Central Bank Digital Currency Global Interoperability Principles 13
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