Digital Currency Adoption and Financial Inclusion in Sub-Saharan Africa

Digital Currency Adoption and Financial Inclusion in Sub-Saharan Africa

Themba Nkosi*

Research Article2024DOIPeer Reviewed

Abstract

Using household survey data from 14 Sub-Saharan African countries (N=87,420), we examine determinants of mobile money and CBDC adoption. Instrumental variable estimates suggest a 10-percentage-point increase in mobile internet penetration raises financial inclusion by 6.2 percentage points among previously unbanked adults. Women-headed households show disproportionate gains with gender-sensitive product design.

Publication Information

AcceptedJanuary 25, 2024

Author Information

Themba Nkosi Corresponding Author
Affiliation: University of Cape Town, School of Economics
KeywordsCBDC, mobile money, financial inclusion, Sub-Saharan Africa, digital currency, banking

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