According to a report that was published on November 24 by the Bank of International Settlements (BIS), many of the central bankers on the African continent have greater faith in CBDC than mobile money, which has been a strong competitor to central bank digital currency (CBDC) in Africa. Mobile money has been a strong competitor to CBDC in Africa.
According to the BIS, central bankers in Africa saw greater utility in CBDC for the implementation of monetary policy than bankers in other parts of the world did.
In response to the survey that served as the foundation for the report, nineteen different central banks in Africa gave their responses, and all of them indicated that they had an active interest in CBDC.
Only Nigeria has issued a retail CBDC, called the eNaira, which is intended for use by the general public. Ghana is currently in the process of piloting a retail CBDC project, and South Africa is in the process of running a project for a wholesale CBDC, which is intended for use by institutions.
The provision of cash was listed as a major motivation for the introduction of a CBDC by African central bankers in the responses of 48 percent of survey participants.
They believed that a CBDC would result in cost savings regarding the printing, transportation, and storage of banknotes and coins.
All respondents made mention of the importance of financial inclusion.
In the year 2021, less than half of Africa’s adult population had their DNA banked.
Two-thirds of the world’s total volume of money transfers come from sub-Saharan Africa, and more than half of all users are located there.
According to the findings of the report, the participation of CBDC in this market may result in increased competition and decreased prices.
“support new digital technologies and their integration with the broader economy.” would be one of the goals of a CBDC.