CBK invites Kenyans to submit views on issuing digital Kenya shilling

for Tv47 Digital February 10, 2022, 04:27 PM
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The Central Bank of Kenya in Nairobi. CBK has kicked off debate on issuing digital Kenya shilling.

The Central Bank of Kenya (CBK) on Thursday invited the public to submit their views on the introduction of a central bank digital currency (CDBC), a virtual version of the Kenyan shilling.

In a bid to keep pace with global financial innovations, CBK has for the first time sought the opinion of Kenyans concerning the digital currency, although insists that there are risks surrounding digital currencies at this point.

“Whilst CBDC offers opportunities to reduce costs associated with digital payments, it also comes with risks particularly related to cybersecurity and unknowns on how it would impact central banks’ core functions of monetary policy, financial stability, and payment systems oversight,” CBK says.

In a lengthy discussion paper that dictates the basis of what is expected in the public views, CBK says that CBDK would be “a sovereign currency in an electronic form and it would appear as a liability on CBK’s balance sheet and an asset to users holding it.”

Kenyans have 120 days to submit their views. If Kenyans would endorse the idea and implemented, CBK will be issuing the printed cash as well as the electronic equivalent.

Experts say the use of digital currency will eliminate the cost of printing cash and lower transactions costs.

Nigeria launched its eNaira digital currency in October last year. Ghana is at an advanced stage of launching its e-Cedi.

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