Nairobi, 20th February: In the wake of a huge number of comments correlating to a discussion paper on CBDC, the Central Bank of Kenya released a statement highlighting its stance on the subject.
The above hailed from members of the public, commercial banks, technology firms and other participants across nine countries pertaining to the potential issuance of a digital shilling in Kenya, widely known as Central Bank Digital Currency (CBDC). Quite varied, these comments didn’t only shed light on the possible benefits but also the negative consequences and associated risks.
In response, the Central Bank of Kenya last year clearly established that while liaising with other central banks for CBDC’s viability, the common consensus was CBDC is gradually losing its global appeal.
Furthermore, the bank declared that the country’s prevailing issues in the payment space will be addressed by innovative solutions around the existing ecosystem and rolling out a digital shilling is not a top priority in the short to medium term. Nevertheless, the bank also highlighted that it would continue to oversee developments and potential avenues for CBDC’s entry in the future.
Want to know the pulse of Silicon Savannah’s FSI? Head to the leading financial expo in Kenya – World Financial Innovation Series (WFIS). While companies are having a hard time choosing between multiple tech events in Kenya, 2024 is going to feature the grandest edition of WFIS on 16 – 17 July 2024 at The Edge Convention Center in Nairobi.