CBDC would improve the Efficiency of Cross-border Payments – CBK
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Governor of The Central Bank of Kenya (CBK), Patrick Njoroge has said his institution is looking to implement the use of central bank digital currencies (CBDC) for cross-border payments. He however maintains that the bank’s priority is getting it right rather than being the first.
As stated by a report made by the Kenyan Wallstreet, Njoroge — argued that the CBDC would improve the efficiency of cross-border payments.
Speaking at the Afro-Asia Fintech festival, he maintained that the CBK’s approach is quite different from other central banks. He said:
“We see we would benefit more from cross-border transactions. The issue is getting it right and not being the first”
The CBK governor made these remarks a few weeks after the Central Bank of Nigeria (CBN) became the first country to launch the CBDC in Africa.
Three weeks after launch, the CBN stated that nearly 500,000 wallets had been downloaded and worth $150,000 worth of e-naira transactions had been recorded.
However, the e-naira encountered some challenges before the launch and has continued to face more issues after launch, following the brief removal of the wallet app on the Google Play Store.
In addition, some observers in Nigeria continue to express their disappointment with the CBN’s decision to extol the CBDC — which is currently at par with the physical naira, while cracking down on crypto users.
Over time, many African countries started showing their interest in cryptocurrency, and due to the pandemic’s effect in 2020, millions of Africans were already into crypto marketing.
As of January 2020, about 2.3 million Africans were already users of Luno, and the numbers have not declined
Owing to this development, many countries have been exploring ways they can benefit from having their own digital currency and are already going about adopting the CBDC.
Asides from Nigeria who has already adopted this new development, other African countries like Egypt, South Africa, Tanzania, Ghana etc have also been looking at the viability of adopting the CBDC.
Featured Image: Governor of The Central Bank of Kenya (CBK), Patrick Njoroge
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