BoB considers introducing a ‘digital pula’

Thinking digital: The BoB has a dedicated group watching out for the latest in fintech PIC: MBONGENI MGUNI
Thinking digital: The BoB has a dedicated group watching out for the latest in fintech PIC: MBONGENI MGUNI

The Bank of Botswana (BoB) is studying the possibility of introducing a digital currency and says a unit is in place assessing the impact on the bank’s mandate and functions, as well as prospective responses, BusinessWeek can reveal.

A Central Bank Digital Currency (CBDC) is a digital form of central bank money that is widely available to the general public. Instead of only printing money, a central bank like the BoB would issue electronic coins or accounts backed by the full faith and credit of the government.

The central bank’s spokesperson, Seamogano Mosanako said the assessment is looking at the impact of a digital currency on price and financial stability, monetary policy transmission, regulation and oversight of the financial and payments system as well as promotion of financial sector development.

Editor's Comment
Implement the recommendations Mr. President

The nation is eagerly awaiting this report to have a glimpse of what the recommendations are like, possibly for further debate. Mr. President, it’s our ardent hope that true to your promises, the public will have an opportunity to peruse the report and see if it reflects their interests as the Commission went around the length and breadth of the country collecting views of the people with some choosing to write to the Commission’s...

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