Kenya’s central bank announced on Friday that it does not believe the issuing of a digital currency to be a “compelling priority,” but that it will continue to follow developments in the area to help future decisions on issuance.
In February last year, the bank solicited public feedback on the prospective establishment of a central bank digital currency, reversing its previous hostility to crypto assets, but it has opted not to issue any.
“On the global stage, the allure of CBDCs is fading,” the apex bank said in a statement.
“Implementation of a CBDC in Kenya may not be a compelling priority in the short to medium term.”
Central banks who hurried to create the currencies are now confronting hurdles that are impeding deployment, according to the report, which also mentions other issues.
Kenya could rely on existing technologies to address any payment issues, according to the report.
The East African country is well-known for its widespread use of mobile money transfers.
Safaricom’s M-Pesa platform, which was introduced in 2007 and currently leads mobile payments, has evolved from a money transfer service to a full-service supplier of payments, savings, insurance, and micro-loans. In a population of about 48 million, the platform boasts more than 30 million active users.
Nigeria became the first African country to create a digital currency in 2021.