Namibian Central Bank Announces Plan to Launch CBDC – Emerging Markets Bitcoin News

Johannes Gawaxab is the Governor of Bank of Namibia (BON). He has indicated that the bank plans to introduce a central bank digital currency. However, the governor warns that this launch could have consequences for financial stability.

The BON Institute for Research on CBDCs

Johannes Gawaxab the BON governor recently said that the central banking is planning to start a CBDC. He confirmed the BON has already started researching CBDCs which, according to him, are now a “reality” that cannot be ignored.

Gawaxab suggested that central banks may be forced to take action due to increased demand for cryptos privately issued in remarks released by Namibia Daily News. He added:

There is a risk that cryptocurrencies will become a global currency, with a rise in their value and number. This could lead to centralized banks and governments being unable to control the financial system. To strengthen the Central Bank’s authority over money, and to maintain control of the payment system, it is important for banks to establish a clear digital currency agenda.

Namibia’s Digital Agenda

Concerning Namibia’s proposed digital currency agenda, Gawaxab is quoted in the report insisting that such an agenda should only be accepted if it’s a product of consultations between governments, financial institutions, and the general public.

Meanwhile, the BON governor suggested that while the central bank is looking to launch the CBDC, the country’s policymakers should also be aware of the potential impact on financial stability that comes with such a digital currency launch.

Let us know your opinions on the story. Please comment below to let us know your thoughts.

Terence Zimwara

Terence Zimwara was a Zimbabwe award-winning journalist and author. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.