The Central Bank of Kenya received comments on a discussion paper on the possible issuance of a digital shilling and has not reached a final conclusion.
In a June 2 announcement on Twitter, the Kenyan central bank saying received more than 100 comments from members of the public, commercial banks, technology companies, and other participants in nine countries regarding the issuance of a central bank digital currency, or CBDC. Responses ranged from highlighting potential benefits and risks, but the central bank said it will "continue to monitor developments" and take a "measured approach" in considering assessing the launch of a digital shilling in the future.
“The implementation of a CBDC in Kenya may not be a compelling priority in the short to medium term,” the central bank said. "Significantly, Kenya's payment pain points could continue to be addressed by other innovative solutions built around the existing ecosystem."
Press Release: Issuance of Discussion Paper on Central Bank Digital Currency: Public Comment pic.twitter.com/dMlrUj2eD6
— Central Bank of Kenya (@CBKKenya) June 2, 2023
The declaration followed the discussion paper Kenya's central bank launched in February 2022. The bank added that it had been collaborating with other central banks behind proofs of concept for CBDCs, but noted that "the appeal of CBDCs is fading" on the global stage.
Related: Kenya considers taxes on cryptocurrency, NFT transfers and online influencers
As one of the largest economies in Africa by gross domestic product, Kenya has its adoption grew of crypto and blockchain significantly in recent years. The Paxful peer-to-peer platform is widely used among cryptocurrency enthusiasts in the African nation, and there are Bitcoin mining projects. helping to provide energy to rural communities.
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