Aruba and Digital Payments
Aruba is an island economy. Island economies use a of migrant workers and remittances are common (and very expensive). This makes a good use case for CBDCs.
Aruba was hit hard by Covid-19 with a 25 percent decline in the GDP – this is because the Aruba is dependent tourism of income.
The IMF identified digital infrastructure reform as key to recovery in Aruba.
The central bank sees digitization as critical to financial inclusion in Aruba. Financial inclusion is 92 percent and that is mainly for current accounts. The savings account figure is far lower. Hence the inclusion problem is seen not in access to transactions but to savings. There was recently a big shift to online payments and mobile payments.
The actual economy has seen a decline in GDP per capita since 2000. Consumer confidence is low and a move to mobile payments is evident.
Like many nations the case for CBDC is well made out in Aruba, accelerated by Covid-19 and the economic impact.