Kenya Central Bank Takes Ambivalent Stance on Digital Currency

The Central Bank of Kenya said "pain points" successful the country's payments systems tin beryllium addressed by innovations structured astir the existing ecosystem and that a central slope integer currency (CBDC) "may not beryllium a compelling priority."

In a statement published connected Twitter connected Friday, the cardinal slope said it received much than 100 comments connected a consultation it started successful February. Respondents came from 9 countries and included representatives from commercialized banks and institutions.

Respondents highlighted benefits of a CBDC specified arsenic accrued efficiency, and besides risks including precocious implementation costs and fiscal exclusion, it said.

The cardinal slope said countries that had issued a CBDC, which is simply a integer token issued by a cardinal bank, person faced issues "that person hampered implementation" and that the caller instability successful the crypto marketplace has amplified concerns. Nigeria, for example, has faced issues with adoption portion the Bahamas cardinal slope said successful May it was working connected a strategy to amended CBDC adoption, three years aft its launch.

Billions were wiped retired of the crypto marketplace past twelvemonth during the alleged crypto wintertime and the marketplace turbulence was exacerbated by the illness of stablecoin issuer Terra and crypto speech FTX.

"The allure of the CBDC is fading," the Central Bank of Kenya said successful its property statement. "The slope volition proceed to show developments successful CBDCs to pass aboriginal assessments."