The “pain points” of Kenya’s payments system can be addressed through innovations built around the existing ecosystem, and a central bank digital currency (CBDC) “may not be a compelling priority,” the Central Bank of Kenya said.
The Central Bank of Kenya said in a statement on Twitter on Friday that it had received more than 100 comments since it began consulting in February this year. Respondents came from nine countries and included representatives from commercial banks and institutions. Respondents emphasized the benefits of CBDCs, such as improved efficiency, but also mentioned risks such as high implementation costs and financial exclusion.
Kenya’s central bank said countries issuing CBDCs face problems “hindering implementation,” with recent instability in crypto markets fueling concerns. Nigeria, for example, faces adoption issues. The Bahamas’ central bank said in May it was developing a strategy to improve CBDC adoption, three years after its launch.
The Central Bank of Kenya said, “The appeal of CBDCs is fading. The central bank will continue to monitor the development of CBDCs to inform future assessments.” (CoinDesk)
