The Central Bank of Kenya is planning on entering into the space of central bank digital currencies (CBDCs) and for this purpose, the bank is in discussions with international central banks. The Kenyan central bank is exploring the possibilities of issuing a central bank digital currency.
While talking to the United States reporters in an online interview, the Governor of the Central Bank of Kenya Dr. Patrick Njoroge said that they feel left out because of the “mushrooming of private cryptocurrencies” and there is a critical need for developing a central bank digital currency. This is why the Kenyan central bank is in talks with central banks from across the whole world. As he said:
“We are already having discussions with other global players, in various ways, around the introduction of Central Bank Digital Currencies. The push comes as a result of mushrooming of private cryptocurrencies and we are already feeling left out and need to create our own space.”
This means another central bank will be joining the race for launching a central bank digital currency. Furthermore, the bank governor said that currently, the evaluation of principles surrounding the issuance of CBDCs is going on. This includes how a centralized digital currency could be made accessible and available to citizens.
Moreover, in the interview, Dr. Njoroge also talked about cryptocurrencies and the importance of blockchain technology. He said that there is a place for digital currencies but there are some concerns related to them such as illicit activities’ financing and money laundering that needs to be addressed. The cryptocurrency space should be regulated properly.
Dr. Njoroge then shed a light on the importance of blockchain technology that runs bitcoin and other cryptocurrencies. He said that blockchain technology is one of those tools that can be used effectively for resolving a problem.
On the other hand, his point of view regarding the world’s largest digital currency Bitcoin was somehow contemptuous. He regarded Bitcoin merely an investment and said that it is just a tool that is utilized by different entities for speculative purposes.