BY OWETHU DLAMINI
MBABANE- The Central Bank of Eswatini is going digital!
With the constant change in technology and the increasing demand for the world to become digital, the Central Bank of Eswatini (CBE) has taken the initiative to diversify Eswatini and look into introducing a digital currency that will be compatible with the fast paced and fast-changing digital world.
CBE through the international technology group Giesecke+Devrient (G+D) has sought out to conduct research and explore the introduction and development of a Central Bank Digital Currency (CBDC).
Prior to this initiative, G+D conducted a study in 2020 which presented results showing strong opportunity in the implementation of a digital currency in Eswatini.
The CBDC will look into tackling issues that take place between business and consumers such as payment efficiency, interoperability, financial inclusion and payment system resilience.
On a statement sent out by the Central Bank of Eswatini, it is worth noting that there has been an increase in the digital demand which allows transactions between businesses and consumers to take place at a faster pace. This is why investigations have been underway to establish the possibility of issuing a digital Lilangeni which could come with benefits that could assist with accessibility and strengthen security where money is involved as well.
“The bank will be investigating the possibility of issuing a digital Lilangeni as a complement to cash capable of providing a technologically advanced platform that can catalyse Eswatini’s digital eco system and realize other potential benefits such as governance, improved accessibility, regional interoperability, security and programmability,” said the CBE.
There is hope that this project will assist the Central Bank of Eswatini to make informed decisions regarding the initiation of the digital currency in Eswatini and that G+D will help guide the bank in the right path throughout this process.
The Central Bank Digital Currency is money that a central bank can create. The reason as to why it is referred to as digital is because it does not come in the form of physical money like notes and coins, but usually in the form of an amount on a digital device.
