In February 2022, the Central Bank of Kenya (CBK) published a discusion paper examining the applicability of a potential Central Bank Digital Currency (CBDC) in Kenya.
The paper details the following aspects of a possible Kenyan CBDC:
CBDC opportunities and risks
Key elements for consideration
Use case for a Kenyan CBDC
In a quest to further understand the CBDC and its implications, NTV, one of the largest broadcasting television stations in Kenya and East Africa, sits down with the Governor for a breakdown of the CBDC.
CBDC is a digital currency issued by the central bank and intended to serve as legal tender.
According to CBK, the consideration to introduce a CBDC in the payment systems in Kenya would not majorly focus on enhancing access to financial services given the existing and growing penetration of mobile money which is already robust, inclusive, and highly active. The consideration could however target:
Enhancing cross-border payments
It will be interesting to hear the Governor’s take on the CBDC and how the central bank intends to roll it out once it confirms its implementation.