SADC states mull introducing digital currency

Central bank governors from the Common Monetary Area are considering the possibility of introducing central bank digital currencies (CBDCs). The CMA covers eSwatini, Lesotho, Namibia and SA. The meeting was hosted by Bank of Namibia (BoN) governor Johannes Gawaxab in Windhoek. The Namibian reports that CBDCs are digital forms of fiat currency issued by a country’s central bank. They are similar to cryptocurrencies, but their value is fixed by the central bank and is equivalent to the country’s fiat currency. BoN spokesperson Kazembire Zemburuka said the meeting covered a range of economic topics such as crisis management and updates on deposit insurance schemes. ‘The agenda also included a look into CBDCs and evaluating their potential and implications for the region,’ said Zemburuka. Currently, the Bahamas (sand dollar), Eastern Caribbean Central Bank (d-cash), Nigeria (e-naira), Jamaica (Jam-dex), China (digital renminbi), India (digital rupee) and Russia (digital ruble) have digital currencies. The governors’ key focus of the meeting was the integration of cross-border payment systems. According to Zemburuka, they looked at ways to make cross-border payments seamless. ‘The governors emphasised the need for equitable and inclusive access that ensures that all stakeholders benefit from seamless cross-border payment capabilities,’ said Zemburuka.