Recent developments have shown that the Central Bank of Kenya (CBK) may have lost interest in developing the country’s central bank digital currencies (CBDC). According to CBK, CBDC development, “may not be a priority in Kenya in the short to medium term.”
Nevertheless, in its recent discussion on CBDCs, the Central Bank of Kenya confirmed that it will not stop monitoring CBDCs globally and may look at the need for digital currency in the country.
Also read, Kenyan Central Bank (CBK) maintains Cryptocurrency Opposition
Sometime in 2022, the CBK launched a document that unveiled the risks and benefits CBDCs pose to Kenya. According to the Central Bank, the adoption of CBDC could threaten the stability of the country.
Despite this, the bank expressed its ongoing interest in gaining insights and comprehending the perspectives of Kenyan residents on the subject matter.
In the “Discussion Paper on Central Bank Digital Currency: Comments from the Public,” the Kenyan central bank reaffirmed its position that a CBDC may not deliver all the anticipated advantages. Instead, the CBK emphasized that existing innovations already encompass certain benefits associated with a CBDC.
Also read, CBDC will Sabotge Fintech Growth in Kenya – IMF
“Ultimately, the rollout of CBDC should not be a race to be first. CBK’s vision is for a payments system that is secure, efficient, and widely available to and works for Kenyans.
Presently, Kenya’s pain points in payments can potentially be solved by strengthening innovations around the existing payment ecosystem,” the CBK explained in the document.
CBK also revealed in the document that it is working with other central banks “to understand if the expected benefits have been realized.”
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