Kenya says developing digital currency not priority

Xinhua
03 Jun 2023, 02:44 GMT+10

NAIROBI, June 2 (Xinhua) -- There is "no compelling need" to develop the digital currency, given instability in the global crypto market and risks of cross-border transactions, the Central Bank of Kenya said Friday.

The bank is cautiously making progress in line with what major global central banks have done, it said in a statement.

"On the global stage, the allure of Central Bank Digital Currency (CBDC) is fading. Central banks that were the first to launch digital currencies have recently faced challenges that have hindered implementation," the bank said.

It added that instability in the cryptocurrency market has amplified concerns and the need for a careful review of the innovation and technological risks.

Kenya's pain points in payments would continue to be addressed with other innovative solutions around the existing ecosystem, including mobile money, it added.

Some of the benefits of CBDC the bank identified are increased efficiency, transparency, faster cross-border payments and lower costs.

But while a CBDC may be useful for cross-border transactions, its risks should be carefully considered, the bank said.

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