Kenya’s central bank weighs issuing a CBDC

Kenya’s authorities have begun discussions with international financial regulators about the advisability of issuing a central bank digital currency (CBDC). According to Kenyan Wallstreet.

Kenya’s central bank governor, Patrick Njoroge, said that before developing and issuing a CBDC it is necessary to analyse possible risks. He attributed the regulator’s interest in the topic to the growing number of cryptocurrencies.

“We feel left out and need to create our own space,” he said.

In Njoroge’s view, the central bank should keep a close eye on the industry where risks related to money laundering and the financing of terrorism persist. He characterised Bitcoin as a tool for speculation, but called the underlying technology impressive.

Earlier in June, Kenya led in local interest in the first cryptocurrency. Twitter CEO Jack Dorsey said that Africa will determine the future of Bitcoin.

For details on why central banks around the world are creating their digital currencies, read ForkLog.

How and why central banks create digital currencies (CBDC)

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