UAE Tech Podcast: CBDCs & the Remittance Economy

Published April 11th, 2022 - 10:07 GMT
Angad Chadha on Empathy, CBDCs and Payment Rails | Al Bawaba
Angad Chadha on Empathy, CBDCs and Payment Rails | Al Bawaba

The remittance economy, or sending a proportion of your earnings home, is a familiar part of life in the Middle East. Remittance transfer providers are often household names, trusted with sending money to family and loved ones in cities and remote areas around the world. Critically, these services are also popular in places where traditional banking doesn’t always exist; customers can withdraw cash in areas where paying by card is simply not an option. 

Today we’re talking with Angad Chadha, CEO of WizzFinancial India. According to Angad a “recent study by , I believe, Oliver Wyman and JP Morgan” says “the total remittances of money that moves across border (and this is across all segments, not just the consumer I’m talking about business and government), is in the range of about $25 billion a year, which is 25% of global GDP.” 

As such, remittances have become a key use-case for CBDCs and other forms of emerging public sector financial instruments. Angad points out that at present a lot of this infrastructure, for example in China with services like AliPay, is private sector led. While that may help with speed and efficiency, it may not be suitable for a de-facto currency. 

the total remittances of money that moves across border, is in the range of about $25 billion a year, which is 25% of global GDP. 

WizzFinancial emphasizes the role of blue collar workers, not tech titans, and the need for empathy in creating harmonized regulatory and technical frameworks. The UAE Tech Podcast has reflected the full-spectrum of debate on digital currencies. Regardless of where you sit on the subject, the overview on the remittance economy and the changing face of financial services is timely, and important.
 

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