The Bank of Mauritius is moving forward with its efforts to launch a central bank digital currency (CBDC), recently disclosing that a pilot project for the CBDC is scheduled to commence in the upcoming months.
Governor Harvesh Seegolam made this announcement during the Bloomberg Financial Forum held in Port Louis. He emphasized the significant progress made.
“A Consultation Paper was released to the public and comments obtained. We have now entered the experimentation phase and expect to move to a pilot run over the next couple of months with the assistance of other service providers and other central banks which have already been involved in successful pilot runs.”
Earlier in 2023, Seegolam announced that Mauritius was set to commence the pilot phase of its digital Rupee in November 2023, noting its significance.
“As a central banker, I need not stress upon the determining role that CBDCs can play, not only in protecting monetary sovereignty, but also in assisting central banks and regulatory authorities on the front of AML/CFT,” he said at the time.
Also, as part of his speech at the Bloomberg Financial Forum, the Governor pointed out the increase in the establishment of digital banks in Mauritius, noting that several applications for digital banking licenses are already in the pipeline.
“Most of our banks offer online banking facilities. One bank is also providing services through artificial intelligence-enabled system.”
However, Seegolam also issued a caution regarding the potential risks stemming from the rapid advancements in financial technology by stressing the importance of comprehensively understanding these implications including their effects on economic activity, financial stability, reputation, and inflation.
Furthermore, Mauritius is striving to position itself as a top choice for multinational corporations looking to set up their treasury headquarters in the region. The African island nation intends to leverage its modern and resilient financial services sector to attract such entities.
Governor Seegolam also took a moment to highlight a significant reduction in the central bank’s intervention in foreign exchange markets. This reduction has decreased from $622 million during the same period in 2022 to $164 million since the beginning of 2023.
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