A sovereign CBDC proposal would therefore not be farfetched.
Comparing the proposed CBDC to existing crypto counterparts, the report says:
“CBDC will be essentially different from the virtual currencies created by private entities such as Bitcoin, Ethereum, and Ripple, whose market prices have fluctuated sharply in recent years. As a country, we cannot afford to be passive to crypto / digital currency global discourse especially now that the World Bank has ventured into the space by issuing a bond.”
The report also highlights the alternative currency implementations of BitPesa and BanglaPesa as case studies on complementary digital currencies that work together with the Kenyan currency.
Currently, Bangla-Pesa and related community currencies have evolved and are now digitized currencies running on the Bancor blockchain protocol. Residents from low-income areas such as Kawangware are now able to use damn phones to exchange value with physical notes.
In order to stay ahead of the curve and reap the benefits of a digital economy, the report proposes not just a digital currency, but the establishment of a legal framework to ensure this innovation thrives, and tokenization of government fiscal operations, to improve service delivery while maintaining relevancy in today’s evolving global landscape.