Kenyan Central Bank: CBDC Not a Priority ‘in the Short to Medium Term’

The Kenyan central financial institution has mentioned implementing a central financial institution digital forex (CBDC) will not be a precedence for Kenya within the brief to medium time period. According to the central financial institution, Kenya’s “pain points in payments can potentially be solved by strengthening innovations around the existing payment ecosystem.”

Central Bank Will ‘Continue to Monitor’ Need for a CBDC

According to the Central Bank of Kenya (CBK), the attract of central financial institution digital currencies (CBDC) is fading and the implementation of such “may not be a priority in Kenya in the short to medium term.” However, in its not too long ago printed dialogue paper on CBDCs, the financial institution mentioned it can “continue to monitor developments” globally and “periodically assess the need for CBDC in Kenya.”

Press Release – Issuance of Discussion Paper on Central Bank Digital Currency: Comments from the Public pic.twitter.com/dMlrUj2eD6

— Central Bank of Kenya (@CBKKenya) June 2, 2023

As reported by Bitcoin.com News in Feb. 2022, the CBK initially unveiled a doc that assessed the advantages and dangers posed by a CBDC to the Kenyan economic system. At the time, the CBK cited issues {that a} CBDC may probably threaten the soundness of Kenya’s monetary system. The financial institution however mentioned it nonetheless wished to be taught and perceive Kenyan residents’ views on the matter.

However, within the doc titled “Discussion Paper on Central Bank Digital Currency: Comments from the Public,” the Kenyan central financial institution repeated its perception {that a} CBDC is not going to convey with it lots of the touted advantages. Instead, the CBK insisted that current improvements already supply a number of the touted advantages of a CBDC.

“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 defined within the doc.

Meanwhile, the CBK revealed within the doc that it’s working carefully with central banks that issued CBDCs “to understand if the expected benefits have been realised.” The bank also spoke of how the public’s comments have “been influential in internal and external consultations with other central banks.”

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