Image Credit: Ghana / Uganda / Rwanda flags via Wikimedia Commons
Several countries across Africa have been working on CBDCs. In this week's newsletter we'll be highlighting three updates that were reported last week from across the continent.
Ghana
Last week the Bank of Ghana (BoG), its central bank, unveiled the latest details of its digital Cedi. In effort to address financial inclusion, its proposed CBDC, the eCedi, will be available for offline use to in order to connect and include rural communities as part of its design in the likely future of the country's digital currency. As part of its design, the CBDC will be able to be stored locally on a card, on a phone, or smart device, and can be passed from one user to another. Additional design features highlighted include (1) accessibility by both the general public and businesses, (2) support for low value payments and utilizing the existing payment infrastructure, (3) mitigate potential risks for banking system disintermediation, (4) the ability to handle large volumes of transactions, (5) 24/7 availability, and (6) support for instant payments. (Read on EmergingCrypto.io; Read on BitKE)
Uganda
Meanwhile, the Bank of Uganda has begun exploring the viability of issuing a CBDC for both households and businesses. Uganda has a very high unbanked population with 72% of the population without a bank account. Ugandan regulators are worried about how a CBDC will address financial inclusion for elderly and rural Ugandans that may be unfamiliar with the technology and not have access to the Internet. However, like other African countries, mobile phone payments are prevalent in Uganda. CBDC supporters argue that implementation will allow Ugandans to move money quickly and cheaply. (Read on EmergingCrypto.io; Read on Ledger Insights)
Rwanda
Rwanda-based The New Times reported last week that the Central Bank of Rwanda will indicate their position for or against a CBDC by December 2022. Rwanda's central bank Deputy Governor, Soraya Hakuziyaremye, said, "[Rwanda is] now at an investigation phase. We are analyzing what could be the benefits to Rwandans to have [a] CBDC but also the risk not only to our economy but the sector depending on the form of digital currency we would issue…What is important is to look at financial inclusion because if you issue a digital currency, you shouldn’t be excluding your population, it has to go with closing the digital divide and making sure that people have the option to use it.” (Read on EmergingCrypto.io; Read on BitKE)
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