The Central Bank of Kenya has received comments on a discussion paper on the possible issuance of digital shillings, but has yet to reach a firm conclusion.
The central bank of Kenya posted an announcement on Twitter on June 2 that it had received more than 100 comments from the general public, commercial banks, technology companies and other actors in nine countries regarding the issuance of a central bank digital currency (CB DC). Responses have ben mixed, highlighting portal benefits and risks, but the center bank operation "Continue to monitor developments" and take a "deliberati. Ve approach "to consider assession the rollout of the digital shilling in the future. may not be a convincing priority in the short to medium term,” the central bank said. “It is worth noting that other innovative solutions around the existing ecosystem may continue to address Kenya's pain points in payments.”
The statement follows a discussion paper from the Central Bank of Kenya in February 2022. The bank added that it has been working with other central banks to support CBDC proofs of concept, but noted that “the attractiveness of CBDCs is fading on the global stage. As one of the largest economies in Africa by GDP, Kenya has significantly increased its adoption of cryptocurrencies and blockchain over the past few years. Peer-to-peer platform Paxful is widely used among crypto enthusiasts in African countries, and there are bitcoin mining projects helping to provide electricity to rural communities.
