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Although CBDCs are technological advancements based on blockchain tech the tech also needs to get within reach of those who can use it
The Central Bank of Kenya governor stated the plans and obstacles to launching CBDC in the country. His remarks were published in Business daily in which he stated that there are significant numbers of people in the country having a lack smartphone access. He says that out of total mobile phone users, only half of them use smartphones and this is not working in support of the CBDC launch plan. Governor is anxious about the fact that it could be the reason which could force the delay of the CBDC rollout.
Further, the remarks of Njoroge noted that proceeding toward the rollout of the central bank’s digital currency is likely to result in locking out Kenyans not having smartphones. The sieging of mobile phone users, and non-smartphone users, in turn, would work against the goal of the central bank to narrow the proportion of the population further that is excluded financially.
The central bank governor said that the virtual currency would have a requirement of minimal viable technology which might be a kind of fourth-generation environment. Generally, there are arguments made such as development could lead to financial exclusion to a huge extent such that several people might fall outside the financial system just because of the fact that others have adopted the CBDC. He thinks that this is something that everyone needs to be careful about.
The Central Bank Governor suggested to the bank itself that the institution needs to wait until the country gets more smartphone users. As noted in a report of Business daily that there were 59 million mobile devices that are being used in Kenya out of which about 56% or approx 33 million of them are feature phones or non-smartphones. Such feature phones are not internet-enabled and owners of such devices would be excluded from using a virtual currency.
Njorge has been seen previously opposing cryptocurrencies and is still quoted in a recent report asserting that in compassion with cryptocurrencies either decentralized or privately issued, CBDC would be more trustworthy and safe than any other day. Earlier the Central Bank released a document having a discussion on risks and benefits of CBDCs. Moreover, the bank has also asked public members to share their opinions and views regarding central bank digital currency.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
