Kenya’s apex bank said Thursday it is examining the possibility of creating a central bank digital currency (CBDC) in response to the accelerated adoption of various digital payments in the country.
The Central Bank of Kenya (CBK) said in a statement issued in Nairobi, the Kenyan capital, that there has been an evolution of payments globally, which include electronic money, stable coins and other cryptocurrencies, hence the need to assess the practicability of CBDC in Kenya.
“New digital payment methods have emerged to facilitate transactions, including CBDC issued by central banks to serve as money in digital forms. Naturally, the balance of risks and benefits of CBDC will vary from one economy to another,” said the CBK in the statement.
Kenya’s central bank has therefore called on the general public to share their views, before May 20th, on the possibility of adopting a digital currency, just one day after it emerged that Zambia is also testing its viability too.
Nigeria became the first country in Africa to pilot its central bank digital currency (CBDC), known as the eNaira, in October last year while Ghana is said to be at an advanced stage of launching its e-cedi. The Bank of Zambia is also carrying out research on digital currencies.
The CBDCs, unlike cryptocurrencies like Bitcoin and Ethereum, are developed by central banks and pegged on countries’ fiat currencies.