Wallis clarifies that financial inclusion aims to extend financial services to individuals worldwide,
especially those with low incomes and no ties to financial institutions.
James Wallis, Ripple’s vice president for central bank engagements and central bank digital currencies
(CBDCs), has highlighted the role of CBDCs in advancing global financial inclusion in a brief video.
Wallis clarifies that financial inclusion aims to extend financial services to individuals worldwide,
especially those with low incomes and no ties to financial institutions.
Wallis pinpointed key factors behind financial exclusion, including low incomes and a lack of existing
ties with financial institutions, leading to the absence of a credit history. In regions with financial
exclusion, banks are often commercial entities driven by shareholder interests, posing challenges in
serving individuals with limited resources, as generating profits from such a demographic is difficult.
Wallis contended that CBDCs provide a cost-effective solution by enabling financial services at a
significantly lower cost than traditional methods. CBDCs offer streamlined payment options
and chances to establish credit, even without previous ties to financial institutions, he said.
This enables individuals to build credit histories, acquire borrowing capabilities and stimulate the
growth of their businesses. Wallis concluded that CBDCs represent a transformative innovation
addressing global challenges in financial inclusion.