50 Use Cases for Central Bank Digital Currencies (CBDCs)

By Darren Mack

Central Bank Digital Currencies (CBDCs) have the potential to revolutionize financial services, streamline government operations, and enhance the provision of state and local services. 

Here are 50 use cases for CBDCs that can benefit state and local services:

Financial Inclusion:

1. Universal Basic Income (UBI):

Distributing UBI payments directly to citizens' digital wallets.

2. Social Welfare Payments:

Efficient distribution of welfare benefits, reducing fraud and costs.

3. Financial Literacy Programs:

Providing digital wallets for educational purposes to teach financial skills to underserved communities.

4. Microloans:

Offering small loans to entrepreneurs and small businesses in underserved areas.

5. Remittances:

Lowering fees and improving accessibility for cross-border remittances.

6. Disaster Relief:

Rapidly distributing emergency funds to affected individuals during disasters.

Government Efficiency:

7. Tax Collection:

Streamlining tax payments and reducing tax evasion.

8. Vendor Payments:

Facilitating quick and secure payments to government vendors and contractors.

9. Public Employee Salaries:

Efficient salary payments for government employees.

10. Procurement:

Managing government procurement processes and reducing corruption.

11. Asset Management:

Tracking government-owned assets like vehicles, equipment, and property.

Healthcare and Public Services:

12. Health Records:

Securing and sharing medical records across healthcare providers.

13. Telemedicine Payments:

Paying for telemedicine services securely and conveniently.

14. Public Transportation:

Digital payments for buses, subways, and other transportation services.

15. Parking and Toll Collection:

Streamlining parking fees and toll payments.

16. Library Services:

Enabling digital library card payments and fees.

Education and Scholarships:

17. Education Fees:

Paying for tuition and educational expenses.

18. Scholarships:

Distributing scholarship funds to students directly.

19. Education Records:

Securing and sharing academic records and transcripts.

Local Business and Economic Development:

20. Small Business Loans:

Providing affordable loans to local businesses for growth.

21. Local Currency Promotion:

Incentivizing the use of local currencies for community development.

22. Tourism Promotion:

Offering digital vouchers or discounts for tourists.

23. Farmers Market Payments:

Facilitating payments at local farmers markets.

Real Estate and Property:

24. Property Tax Payments:

Simplifying property tax payments.

25. Land Title Registry:

Securing land ownership records.

26. Real Estate Transactions:

Facilitating transparent and efficient property sales.

Elections and Voting:

27. Digital Voting:

Exploring secure digital voting options.

28. Campaign Financing:

Transparent tracking of political campaign donations.

Public Records and Notarization:

29. Marriage and Birth Certificates:

Issuing digital certificates.

30. Notarization Services:

Efficient notarization for legal documents.

Environmental Initiatives:

31. Carbon Credits:

Issuing and tracking carbon credits for eco-friendly initiatives.

32. Green Energy Payments:

Incentivizing renewable energy production and consumption.

Criminal Justice and Law Enforcement:

33. Bail Payments:

Simplifying bail payments and tracking.

34. Evidence Chain of Custody:

Securing and tracking evidence records.

Emergency Services:

35. Emergency Aid:

Swift distribution of emergency aid during crises.

36. Amber Alerts:

Rapidly issuing and tracking alerts for missing children.

Transportation and Infrastructure:

37. Road Maintenance:

Allocating funds for road repairs based on usage.

38. Smart Traffic Management:

Optimizing traffic flow through digital payments.

39. Public Infrastructure Payments:

Paying for public infrastructure usage (bridges, tunnels, etc.).

Charity and Non-Profit Support:

40. Donations:

Efficient collection and tracking of charitable donations.

41. Social Services:

Distributing funds to support non-profit organizations.

Local Governance and Transparency:

42. Community Decision-Making:

Incentivizing citizen participation in local governance.

43. Transparency Initiatives:

Publicly recording government transactions.

Environmental Conservation:

44. Parks and Wildlife Reservations:

Digital payments for park access and wildlife conservation donations.

Agriculture and Food Safety:

45. Food Traceability:

Ensuring food safety through transparent supply chains.

46. Agricultural Subsidies:

Efficient distribution of subsidies to farmers.

Homelessness and Housing:

47. Homeless Support:

Distributing funds for homeless shelters and services.

48. Affordable Housing:

Supporting affordable housing initiatives.

Crisis Response and Healthcare:

49. Vaccination Records:

Securely storing and sharing vaccination records during health crises.

50. Emergency Medical Payments:

Rapid payments for medical services during crises.

These use cases highlight the potential of CBDCs to improve state and local services across various sectors, from finance and healthcare to governance and environmental conservation. Implementing CBDCs in collaboration with relevant government agencies and stakeholders can enhance efficiency, transparency, and inclusivity in delivering essential services to communities.