Zimbabwe Tertiary Learning Institution Developing Central Bank Digital Currency – Bitcoin News

Harare Institute of Technology (a Zimbabwean institution of higher education) is currently developing a central bank digital money (CBDC). Quinton Kanhukamwe, the institution’s vice chancellor, said the digital currency is expected to help eliminate vices such as currency manipulation and unsanctioned foreign exchange deals.

Eliminating Illegal Foreign Exchange Deals

A Zimbabwean tertiary learning institution, the Harare Institute of Technology (HIT) is developing a central bank digital currency (CBDC), the organization’s vice chancellor Quinton Kanhukamwe has said. Kanhukamwe said that CBDC would help to eliminate currency manipulation, hoarding, and illegal foreign exchange trades.

The Herald published Kanhukamwe’s comments. Kanhukamwe was speaking at graduation ceremonies attended also by Emmerson Ngagwa, Zimbabwean President. He stated:

Many people believe that traditional banks are only out to steal their income. It’s true. [CBDC]It has the ability to significantly reduce regulatory costs at central banks, thereby lowering transaction costs which will eventually reduce service costs. This has resulted in a thriving service industry. [a]Significant reductions in fees

How to Reduce Printing Costs

Kanhukamwe said that formal banking services will be available to all citizens once they are banked. This could potentially trigger a chain reaction which can lead to increased sales for small and medium-sized businesses. Kanhukamwe stated that using a CBDC can help the central banks reduce the costs of printing money.

The Reserve Bank of Zimbabwe (RBZ), in its most recent monetary policy statement stated that it has developed a roadmap to the CBDC. The central bank said it would unveil a public consultation paper which it said would foster “a broad and transparent public dialogue regarding the potential benefits and risks of CBDC.”

Similar to its previous updates about the CBDC, the RBZ’s latest statement doesn’t state the date when the central bank is hoping to roll out the CBDC. The statement also didn’t state if the RBZ is working with another entity towards this objective. According to Herald, HIT might be creating the CBDC for central banks.

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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.

Credits for the imageShutterstock. Pixabay. Wiki Commons

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