Patrick Njoroge (the governor of Kenya’s central bank) stated that the large number of non-smartphones in Kenya could mean that launching a digital currency central bank (CBDC), now might be too early and could result in many people being financially excluded.
Central Bank delays CBDC rollout
The governor of the Central Bank of Kenya (CBK), Patrick Njoroge, has suggested the lack of access to smartphones of more than half of Kenya’s mobile phone users is working against its plan to launch a CBDC. Njoroge warned that the CBDC may not be implemented as planned by the central bank.
According to Njoroge’s remarks published by Business Daily, proceeding with the rollout of the digital currency will likely see Kenyans without a smartphone being locked out. This blockade of non-smartphone users, in turn, works against the central bank’s goal of further narrowing the proportion of the population that is financially excluded.
Njoroge explained:
A minimum viable technology standard will be established by the CBDC. This may include a fourth-generation (4G), environment. There is an argument to be made that such a development could lead to greater financial exclusion such that some people may fall out of the financial system just because we have adopted a CBDC… This is something we need to be careful about.
According to the governor, CBK might have to wait for Kenyans with more smartphones. The Business Daily report shows that 56% of Kenya’s 59 million smartphones are feature or non-smartphones. The internet is not available on feature phones, meaning that they are prohibited owners from using the CBDC.
CBDC is safer than crypto
Despite pointing out the challenge that may result from the CBDC launch, Njoroge — who has previously expressed his opposition to cryptocurrencies — is still quoted in the report asserting that a CBDC would be “safer and more trustworthy” than privately issued digital currencies.
Meanwhile, Njoroge’s latest remarks concerning the central bank’s plan to launch a digital currency come a few weeks after the CBK released a document discussing the benefits and risks of a CBDC. Bitcoin.com News reported that the central bank had asked citizens to voice their opinion about the CBDC.
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