Kenya has started to explore the possibility of using CBDC
The bank sees potential value in using digital currency to facilitate cross-border transactions
11.02.2022 - 13:05
316
1 min
0
What’s new? Kenya joins a growing list of countries that are exploring the possibilities of using the nation’s digital currency. The Central Bank of Kenya (CBK) has stated that the use of a CBDC can improve cross-border payments by making them more efficient and less costly.
Information on the CBK website
What does the CBK propose? In a paper discussing the potential use of digital currency, the financial regulator stated that it will be able to align the multi-layered correspondent banking structure and reduce payment chains. The CBK has given citizens until May 20 to submit their comments to the document. It analyzes both the risks and prospects of a CBDC. A key opportunity in which the bank sees potential value is the use of digital currency to facilitate cross-border transactions.
What risks does the bank see? According to the CBK, the digital currency has the potential to insulate the public from the risk of new forms of private money by providing safer and more secure payment services. However, it noted that a CBDC is still vulnerable to cyber-attacks and other security threats, including data privacy issues.
Useful material?
Market
Digital assets have made it easier to conduct transactions in the face of sanctions
Dec 25, 2024
Mining
The restrictions are designed to maintain the balance of energy consumption, taking into account the demands of the industry
Dec 24, 2024
Market
Due to supply shortages, the asset’s pre-market exchange rate was climbing above $1000
Dec 16, 2024
Incidents
Reports about the hacking of the exchange with calls to withdraw assets began to spread on December 13
Dec 13, 2024
Crypto regulations
Stablecoins from issuer Circle will not be affected by the changes
Dec 12, 2024
Crypto regulations
The platform will launch after meeting the preconditions of the local exchange authority
Dec 9, 2024