The Central Bank of Kenya has received comments on a discussion paper on the possible issuance of a digital shilling and has not reached a final conclusion.
In a June 2 announcement on Twitter, the Central Bank of Kenya He said It received more than 100 comments from members of the public, commercial banks, technology companies, and other participants in nine countries regarding the issuance of a central bank digital currency, or CBDC. Responses varied from highlighting potential benefits and risks, but the central bank said it would “continue to monitor developments” and would take a “calculated approach” to looking at evaluating a future digital shilling offering.
“Implementing a central bank digital currency in Kenya may not be an urgent priority in the short to medium term,” the central bank said. “Remarkably, Kenya’s repayment vulnerabilities can continue to be addressed through other innovative solutions around the existing ecosystem.”
Press Release – Publication of a Discussion Paper on Central Bank Digital Currency: Comments from the Public pic.twitter.com/dMlrUj2eD6
– Central Bank of Kenya (CBKKenya) June 2, 2023
The statement followed a discussion paper released by the Central Bank of Kenya in February 2022. The bank added that it was collaborating with other central banks behind proofs of concept for CBDCs, but noted that “the allure of CBDCs is fading” on the global stage.
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As one of the largest economies in Africa by GDP, Kenya has grown its adoption of cryptocurrency and blockchain exponentially in the past few years. The Paxful platform is widely used among cryptocurrency enthusiasts in the African country, and there are bitcoin mining projects that help provide power to rural communities.
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