Following news that the Central Bank of Eswatini (CBE) had chosen the German company Giesecke Devrient as its technology partner, Eswatini (formerly Swaziland) recently became the most recent African nation to announce its plan to launch a digital currency.
According to a statement released by the technology company, an agreement to this effect was struck at the most recent annual meeting of the International Monetary Fund (IMF) and the World Bank Group.
More on the CBDC project
A design idea, as well as other factors, including governance, accessibility, interoperability, security, and programmability of the future digital currency, will be part of the CBDC project. The advisors are anticipated to assist the CBE in making an informed choice regarding whether to adopt the e-currency and the most effective methods for implementing it.
After the first part of a 2020 CBDC Diagnostic research by the CBE was finished, the project was started because it “presented the strongest and direct opportunity for the adoption of a digital currency in Eswatini.”
Through the CBDC project, the Bank will look into the feasibility of releasing a Digital Lilangeni as an alternative to cash to guarantee that consumers continue to have access to legally supported central bank money. It entails a design idea for a hypothetical Eswatini digital money that takes into account issues with governance, usability, interoperability, security, and programmability.
In general, the project will give the Bank the information it needs to decide whether to implement a CBDC in Eswatini. At the conclusion of the study, it is hoped that the Bank will have a better understanding of whether and how a CBDC may offer additional advantages and maintain access to central bank funds, aiding in the growth of the nation’s varied and robust payment system.
