CBK Calls for Submissions On the Application of the Digital Currency
Those interested to participate in this discussion have to submit their comments in written or representations to CBK by 5:00 PM Friday of May 20th, 2022.
Skeeter Imisa
The Central Bank of Kenya has called out for public opinion on the rollout and application of the Central Bank Digital Currency (CBDC)
Digital currency will serve as a legal tender. The Central Bank Digital Currency will be a sovereign currency in an electronic form and will appear as an asset to the users and a liability to CBK bank balance sheets.
The introduction of digital currency will enhance cross-border payments, financial stability, consumer protection and promote innovation.
Bitcoin, a form of digital currency [photo/courtesy]
However, the risk factors include financial exclusion, data privacy and technological risks.
The Central Bank of Kenya has therefore announced for interested parties to help mitigate these limitations to fulfill their part of ensuring informed policy decisions on innovations. Those willing to participate in this discussion have to submit their comments in written or representations to CBK by 5:00 PM Friday of May 20th, 2022.
The mandate of CBK is to formulate and implement monetary policy in order to promote price stability, issue currency in notes and coins, provide banking services to commercial banks, financial institutions and the government.
Kenya joins countries that have piloted the use of digital currency such as Zambia, China, Sweden, South Korea among others. Nigeria launched the use of eNaira in 2021 becoming the first African nation to introduce the use of digital currency.
Nigerian President, Muhammadu Buhari (L) launching the eNaira [photo/courtsey]
Countries that have already operationalized the use of digital currency include the Bahamas, Antigua and Barbuda, Saint Kitts and Nevis, and Saint Lucia
So far about 87 countries are still weighing the odds of using digital currency. 9 countries have already launched while 14 are in the initial stages.
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