The Central Bank of Kenya (CBK) is looking to the public in order to evaluate the pros and cons of central bank digital currencies.
With CBDCs entering several countries across the globe, it seems that some places are only considering their potential benefits. In terms of Africa, Nigeria is the only country in the continent that has already launched its own central bank digital currency, with Kenya seemingly following in its footsteps.
According to a Twitter post published by the Central Bank of Kenya, residents are able to post their concerns and possibilities that may come with CBDCs via an online form until May 20th. This is done to see if the people of Kenya would actually be interested in digital assets issued by the government.
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Likewise, based on the statement issued by the CBK, central bank digital currencies may eliminate any barriers that come with running a traditional bank via faster transactions and smaller transfer fees, especially across multiple borders:
"The trend in Kenya’s domestic payments indicate the existence of a digital currency (e-money) that is robust, inclusive and highly active. Therefore, the consideration to introduce a CBDC in the payments system in Kenya could target cost reduction, interoperability and enhancing crossborder payments."
The CBK highlights that CBDCs could be a much safer alternative for stablecoins that are currently circulating in the market. However, the bank does not shy away from the fact that digital assets come with several vulnerabilities which may be exploited by hackers. Therefore, CBDCs in Kenya would require high-level safety measures to protect funds from any exploits.
With the government of Kenya still uncertain about implementing a CBDC, the public form may help accelerate the decision of the authorities. If the decision goes in favor, Kenya will be the 92nd country in the world to engage in CBDC development.
