Basel Digital Currencies In Africa

On Nov. 24, Basel analyzed central bank digital currencies in Africa.

  • Basel issued working paper, Central bank digital currencies in Africa, based on survey.
  • Overview
  • Paper analyzes the development, motivations and concerns of central bank digital currencies (CBDCs) in Africa relative to other emerging and developing regions.
  • Interest of African central banks in these currencies has shot up in recent times, and while all those surveyed are analyzing CBDCs, very few have advanced stage projects.
  • Some nations stand out as promoting fast payment systems through mobile money, but half of surveyed central banks think that CBDCs can provide a superior solution.
  • Key motivation for African central banks is achieving greater payment system efficiency, higher proportion than in other regions see benefits for monetary policy.
  • Central banks in Africa also place more emphasis on financial inclusion, but are also more worried than other regions about cyber security risks, cross-border spillovers.
  • Also concerned about high operational burdens, these factors favor cautious approach.
  • Overall, differences in motivations, concerns and other country-specific factors determine how central banks are approaching CBDCs, deciding how to move forward.

Regulators Basel
Entity Types B/D; Bank; Depo; Exch; Inv Co; MSB; SIFI
Reference WP 128, 11/24/2022; Fintech
Functions Compliance; Cyber; Financial; Fraud; Operations; Product Design; Reporting; Risk; Technology; Treasury
Countries Global Regulator; Cross-Border
Category Global Standards Body
Products Banking; Corporate; Cryptocurrency; Deposits; Fund Mgt; Payments
Regions Global
Rule Type Guidance
Rule Date 11/24/2022
Effective Date 11/24/2022
Rule Id 154306
Linked to N/A
Reg. Last Update 11/24/2022
Report Section International

Last substantive update on 11/24/2022