Countries like Nigeria, Ethiopia and Ghana are also discussing the potential of CBDCs, and for them, the purpose is unique. These countries are considered economic underdogs because they have immense potential and are just getting started.
Nobody expects the e-naira to become more potent than the dollar, but nobody also expects their financial system to remain in the old ages either.
The world's wealth distribution is critically imbalanced, and commodities like gold and silver were often plundered from unstable regions to stable ones. These countries are now facing a unique challenge — cling onto the current trend of a robust global dollar or kick start their novel revolution.
They also have their share of unique problems like under-equipped government institutions and large-scale poverty.
To address the plethora of issues, these countries need a custom-made solution that requires hyperlocal reach. Even something as basic as a know-your-customer (KYC) can prove to be difficult due to a lack of documentation. A brand new monetary policy can address these issues, indirectly democratising the otherwise prejudiced financial system.