Africa-Press – Eswatini. The Central Bank of Eswatini (CBE) has commenced stakeholder consultations on the introduction of CBE Digital Currency (CBDC).
The Central Bank Digital Currency (CBDC) is anticipated to exist exclusively in digital or algorithmic format. And will be underpinned by technologies that allow for seamless transactions across one integrated payment system by using a single standardised payment instrument.
Earlier on it was disclosed that CBE partnered with international technology group Giesecke+Devrient (G+D) to research and explore the development of a Central Bank Digital Currency (CBDC) – an electronic form of money for Eswatini. G+D’s appointment it was reported, stems from the completion of the first phase of the CBDC diagnostic study conducted in 2020 which found that a retail CBDC presented the strongest and direct opportunity for the adoption of a digital currency in Eswatini.
Piloting
CBE has since reported that the move towards CBDC was gaining momentum. According to CBE, 92 per cent of central banks globally are researching, piloting or rolling out CBDCs to production and Eswatini is at the research stage.
“Building on the findings of the CBDC diagnostic study conducted in 2020, the Central Bank held a stakeholder consultation session for both private and public sectors at Happy Valley Hotel, with some participants joining virtually. The consultations started at Royal Villas with the CBE board and CBDC steering committee,” the bank reported.
It was disclosed that the purpose of the stakeholder consultations was to develop a body of knowledge through addressing various aspects of CBDC issuance including design principles that should be considered for the development of a digital Lilangeni. In addition, defining the potential use cases specific to Eswatini, distribution model, technical design considerations as well as legal considerations for issuing a retail CBDC in Eswatini.
CBE Governor, Dr. Phil Mnisi, explained that while cash remained a dominant means of payment, technology and the increasing demand for instant and fast payments were changing the way businesses and consumers transact, adding that the bank partnered with international technology group Giesecke+ Devrient (G+D) to conduct research and explore the possibility of developing a CBDC for Eswatini.
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