Detection of Financial Inclusion Vulnerable Rural Areas through an Access to Cash Index: Solutions Based on the Pharmacy Network and a CBDC. Evidence Based on Ávila (Spain)

Sergio Náñez Alonso, Javier Jorge-Vazquez and Ricardo Francisco Reier Forradellas
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Javier Jorge-Vazquez: Department of Economics-DEKIS Research Group, Catholic University of Ávila, Canteros St., 05005 Ávila, Spain
Ricardo Francisco Reier Forradellas: Department of Economics-DEKIS Research Group, Catholic University of Ávila, Canteros St., 05005 Ávila, Spain

Sustainability, 2020, vol. 12, issue 18, 1-33

Abstract: The ability to access quality financial services and cash has been indicated by various organizations, such as the World Bank or UN, as a fundamental aspect to guarantee regional sustainable development. However, access to cash is not always guaranteed, especially in rural regions. The present study is based in the Ávila region of Spain. A parameter called the “ access to cash index ” is constructed here. It is used to detect rural areas where the ability to access cash and banking services is more difficult. Based on the “ access to cash index ”, two sustainable solutions are proposed: The first (in the short term), based on extending access to cash, takes advantage of the existing pharmacy network. With this measure, a notable reduction of more than 55% of the average distance required to access this service is verified here. The second is based on the implementation of a central bank digital currency. Here, the results show an acceptance of 75%. However, it is known that elderly people and those without relevant education and/or low incomes would reject its widespread use. Such a circumstance would require the development of training and information policies on the safety and effectiveness of this type of currency.

Keywords: financial inclusion; vulnerable rural areas; sustainable solutions; central bank digital currency; social sustainability; pharmacy network; sustainable development; sustainable access to cash (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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