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Retail CBDC complexity may discourage adoption, says research

Kansas City Fed author argues Caribbean CBDCs have struggled to add value

Kansas City Federal Reserve
The Federal Reserve Bank of Kansas City

The complexity of achieving financial integration of a retail central bank digital currency (rCBDC) may discourage commercial banks, says a researcher with the Federal Reserve Bank of Kansas City.

Franklin Noll reviewed the experience of various Caribbean states that launched rCBDCs in the last few years – Jamaica’s Jam-Dex, the Bahamas’s sand dollar, and the Eastern Caribbean’s DCash. In a paper, published on April 10, he says none of the CBDCs has yet achieved widespread adoption.

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