Kenya ready to issue digital shilling if needed

In March, Juniper Research published a study stating that the use of Central Bank Digital Currencies (CBDCs) will grow in the coming years.

According to analysts, by 2030 the volume of transactions with tokens will exceed $210 billion. Kenya may become another state that will issue a virtual currency pegged to the national currency.

The digital shilling will be a tool with which the Central Bank will be able to modernize the country’s payment system.

At the end of last week, the press service of the Central Bank reported that the regulator is eyeing CBDC and is ready to issue a token if necessary. However, the creation of such an instrument is not on the list of priorities for the Bank of Kenya.

Back in February 2022, the regulator launched a public discussion on the CBDC project.

After 16 months, the Central Bank began to sum up the preliminary results by analyzing expert comments. In his opinion, the introduction of a digital shilling will reduce transaction costs and increase the transparency of the movement of funds in the domestic market.

Kenya is working with the Bank for International Settlements (BIS), the International Monetary Fund and other central banks to form an effective model for establishing a CBDC.