Central Bank of Kenya To Issue Digital Currency

The Central Bank of Kenya is in serious discussion about the introduction of the central bank digital currency internationally. Patrick NJOROGE, governor at the Central Bank of Kenya (CBK), told US reporters during fintech week in Georgetown, DC that the bank sees strong arguments for CBDC, one of which is the rapid growth of private cryptocurrencies.

The head of the CBK pointed out that cryptocurrencies have a place in the Kenyan economy, however, the space should be properly regulated to address the problems of money laundering and the financing of illegal activities. Njoroge is of the opinion that cryptocurrencies will not crowd out cash because the global trend is “towards a less cash economy, not a cashless economy”.

The governor of the CBK added that the principles of CBDC implementation and how tokenized versions of national currencies can be made available to citizens are currently being studied. According to Dr. Njoroge, a potential CBDC should contribute to the economic stability of the East African country. All the comments from the head of the CBK about the study of CBDC and possible regulation of digital assets mark a huge step in the right direction for the Kenyan crypto market.

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