Zambia’s central bank expects to complete research on forming a digital currency that could cut transaction costs and boost participation in the formal financial system by the fourth quarter.
“The results of the research will form part of the input in the policy considerations on whether to introduce a central bank digital currency in Zambia,” Nkatya Kabwe, acting assistant director of communications at the regulator, said in response to emailed questions.
CBDCs, or so-called GovCoins, are national currency because they are linked to fiat currency, unlike their crypto counterparts such as Bitcoin and Ethereum.
Cryptocurrencies are not legal tender in Zambia, the central bank said earlier this month and “people who want to deal in them should have a clear understanding of all the risks that come with such payment and investment instruments.”
The Bank of Zambia is researching GovCoins as they have the potential to expand financial inclusion, improve traceability, safety and efficiency of payment systems, Kabwe said.
Analysts at the Bank of America Corp. have warned that central banks that don’t introduce their own digital money risk losing monetary control and seeing the demand for their currencies drop as their citizens start using another country’s digital cash.
Zambia joins nations such as Israel, Ghana, the Bahamas, Nigeria, China and the U.S. that are toying with the idea or have issued a digital version of their currencies to keep up with technological advances that have spurred the rise of Bitcoin and other private initiatives.
Bloomberg
Bufi unless you want to be conned
It’s a good Fintech development except there is more to be done and technically so Countries apart form those sweeden have done CBDC We are a little bit Long way to come buy but it’s the way monetary authorities are moving the benefits could be many just as the risks in control and Operational models with banks and businesses it’s a shift from traditional money and it’s mode of operations and such that it must be gotten right before implementation and not rushed
CBDCs is not new what MTN,AIRTEL and all those dealing in electronic money are actually CBDCs Just remove paper money from circulation….but you need to put up security alot of people are loosing money through mtn and airtel money scams
Proactive Govnmnent
Digital currency? Crypto? They can’t even run a simple Kwacha! Depreciation continuously ongoing K18.44 to the dollar. And REAL inflation 20.1% so why don’t you fix that first before you think about future stuff
Also the implied risks to the local reserve currency the kwacha because value can be lost apart it’s derived demand for goods and services There is a lot to be put in place before any sanddollar can be rolled out in Countries of issue people still think it’s distributed ledgers form of currencies and one of the mark of traditional fiat or helicopter money is acceptability and retention of value
@3
I don’t think it works well, it’s too expensive dealing with the Airtel or MTN
E.g withdrawing money from them very expensive???