The Bank of Namibia is exploring a potential CBDC to improve cross-border payments and financial inclusion, following IMF guidance. The IMF recommends against immediate rollout, emphasizing the enhancement of existing payment infrastructure. Discussions with neighboring central banks continue to assess feasibility for cross-border use. The BoN is keen to refine its CBDC strategy based on these insights.
The Bank of Namibia (BoN) is contemplating the launch of a central bank digital currency (CBDC) to enhance cross-border payments and promote financial inclusion. This initiative follows a technical assistance mission from the International Monetary Fund (IMF), as BoN progresses into the preparatory phase for a possible CBDC rollout. BoN’s director of strategic communications, Kazembire Zemburuka, indicated that the bank is examining how a CBDC could bolster financial inclusion.
The Bank of Namibia is cautious in its exploration of a CBDC, prioritizing the enhancement of existing payment systems as advised by the IMF. As discussions with other Southern African central banks continue, the BoN seeks to refine its approach based on IMF recommendations while considering the regional implications of a CBDC for cross-border payments. Success in this area requires a thorough understanding of both technological frameworks and financial stability concerns.
Original Source: www.mariblock.com
