Central Bank of Kenya Contemplates Issuing CBDC Post Public Feedback
The Central Bank of Kenya is still debating whether or not to issue a CBDC after receiving feedback on a discussion paper on the topic.
Kenya’s central bank announced the receipt of more than a hundred comments from the general public, commercial banks, technology businesses, and other players from nine nations on the issuing of a central bank digital currency (CBDC) in a tweet on June 2.
Measured Approach Finalized
Responses differed in their emphasis on the possible advantages and concerns, but all agreed that the central bank would “continue to monitor developments” and use a “measured approach” in evaluating the prospective implementation of a CBDC.
The Central Bank stated:
“Implementation of a CBDC in Kenya may not be a compelling priority in the short to medium term. Significantly, Kenya’s pain points in payment could potentially continue to be addressed by other innovative solutions around the existing ecosystem.”
The discussion paper was published in February 2022 by the Central Bank of Kenya, which prompted the subsequent declaration. The bank stated that “the allure of CBDCs is fading” internationally, but said that it has been cooperating with other central banks behind proofs-of-concept for CBDCs.
Kenya’s use of crypto and blockchain has risen substantially over the last few years, and the country now boasts one of the highest GDPs in Africa. Bitcoin mining initiatives in the African country are helping to give electricity to rural populations, and the peer-to-peer network Paxful is popular among crypto aficionados.