Patrick Njoroge (CBK Governor) has stated that his bank is exploring using central bank digital currencies (CBDC), to settle cross-border payment. Njoroge however insists the bank’s priority is getting it right rather than being the first.
CBK’s Approach
According to a report by the Kenyan Wallstreet, Njoroge — who made these remarks while attending a virtual Afro-Asia Fintech festival — argued that such a CBDC would enhance the efficiency of cross-border payments. The report nonetheless quotes Njoroge reiterating the CBK’s approach which is different from that of other central banks. He stated:
The benefits could be greater cross-border. It is important to not be the first to address this issue.
The remarks of the CBK Governor come just weeks after Nigeria’s Central Bank (CBN), launched a CBDC. Three weeks later, CBN announced that almost 500,000 wallets were downloaded and $150,000 in e-naira transactions had been made.
Collaborative vs. Individualistic Approach
Bitcoin.com News reports that the enaira was still facing challenges even after launch. The end result was the removal of the Google Play Store wallet app. In addition, some observers in Nigeria continue to decry the CBN’s decision to extol the CBDC — which is pegged at par with the physical naira — while cracking down on cryptocurrency users.
Although the Kenyan Wallstreet report does not quote Njoroge mentioning the CBN’s launch of the e-naira, the same report suggested that the CBK governor favors cooperating with other central banks rather than going it alone.
Do you agree with Njoroge’s approach of getting it right rather than being the first? Let us know what you think below in the comments.
Image creditShutterstock. Pixabay. Wiki Commons. Mary. MM
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