BY PHUMELELE MKHONTA
MBABANE – Already on the roll!
This is the Central Bank of Eswatini (CBE) as it has already started consultations with stakeholders regarding Central Bank Digital Currencies (CBDC). The CBE is hosting these consultations barely two months after they revealed that they would be introducing digital currency in the country.
According to the Central Bank of Eswatini’s statement which was captured from its LinkedIn verified page, the move towards Central Bank Digital Currencies (CBDCs) is gaining momentum.
“92 per cent of Central Banks globally are either researching, piloting or rolling out CBDCs to production. 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 yesterday at Happy Valley Hotel, with some participants joining virtually.”
The statement further revealed that the consultations started on Monday at Royal Villas in Ezulwini with the CBE Board and CBDC steering committee.
According to the statement by the bank, the purpose of the stakeholder consultations is 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.”
It was also revealed that speaking in yesterday’s session, 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 are changing the way businesses and consumers transact.
The Bank partnered with international technology group Giesecke+Devrient (G+D) to conduct research and explore the possibility of developing a CBDC for Eswatini.
(Courtesy Pics of CBE LinkedIn)
