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- 1 Mauritius is all set to launch its CBDC pilot program in November 2023.
- 2 Mauritius has been exploring the same for three years now and has been the first country to ask for assistance from the IMF for funds.
- 3 IMF says its guidance is essential for the uniform design of CBDC and reassured to help all Central Banks worldwide.
Mauritius’s CDBC Pilot Program
After much exploration, Mauritius will soon join the group of countries about to launch the Central Bank Digital Currency (CBDC) shortly after its banking regulator confirms the pilot program. The governor of the Bank of Mauritius ( BoM ), Harvesh Kumar Seegolam, stated that the institution will launch its CBDC Pilot Program in November 2023. He made the statement at the World Bank Community of Central Bank Technologist meeting. He also said that the development of CDBC will be his forefront objective.
He continued that being a central banker; he knows the role of CBDC. They not only protect monetary sovereignty but can also assist central banks and regulatory authorities on the front of AML/CFT.
Mauritius is very cautious about the botched digital money; the Bank of Mauritius turned towards the international monetary fund for technical assistance for CBDC in 2020 and became the first country to be assisted by funds. Consultation with the IMF experts began the same year, and as a result, the feasibility reports were in favor. After a little while, when the sandbox was floated to lay the foundation of the digital rupee, the Central Bank took things to a higher level.
With the detailed and long exploration of three years, Seegolam said that Mauritius would have a two-tier distribution model for CDBC. He believed that a two-tier distribution model was necessary to prevent sudden disruption to the financial ecosystem and to evolve the country’s central bank even when things are not in favor and avoid bank intermediation.
The Bank of Mauritius plans to launch interest-free CBDCs and explore the cross-border payment functionality in the second stage of the pilot. This move will provide a solution to problems causing international remittance.
Mauritius will launch a public consultation in June for academics and industry players to share their opinion on the viability of Mauritian legal tender.
Mauritius has been gradually adopting blockchain technology for several years now. The country regulated asset custody regulation licenses and security token offerings in 2019. It was seen as an emerging hub for technology.
Uniform CBDC design
Several countries are marching towards CBDC, and the IMF has reassured them to provide technical assistance to the Central Banks worldwide. IMF says that its guidance is of utter importance to ensure uniformity in the design of CBDC.
About two dozen countries have requested assistance from the IMF, with Peru’s central bank being the latest. The IMF has also planned to launch a handbook guide for quick assistance for the countries exploring the CBDC.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
