Kenya mulls over creating Central Bank digital currency

Kenya’s apex bank said Thursday it is examining the possibility of creating a central bank digital currency (CBDC) in response to accelerated adoption of various digital payments in the country.

The Central Bank of Kenya (CBK) said in a statement issued in Nairobi, the Kenyan capital, that there has been an evolution of payments globally, which include electronic money, stable coins and other cryptocurrencies, hence the need to assess the practicability of CBDC in Kenya.

“New digital payment methods have emerged to facilitate transactions, including CBDC issued by central banks to serve as money in digital forms. Naturally, the balance of risks and benefits of CBDC will vary from one economy to another,” said the CBK in the statement, which is soliciting public views on the subject.

In seeking to introduce the currency, Kenya’s apex bank is following in the footsteps of other countries in Africa. ■

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