Africa Faces a Crucial Opportunity to Embrace Central Bank Digital Currencies
Follow-Up
The magazine “Jeune Afrique” revealed that the African continent is at a pivotal juncture regarding the adoption of central bank digital currencies, which could serve as a tool to support economic integration, enhance monetary sovereignty, and expand financial inclusion.
The report clarified that the objective is not to abolish traditional payment methods but to establish a public, secure, and transparent digital infrastructure that allows banks, fintech companies, and the private sector to develop new services.
It noted that this mechanism would help reduce transaction costs, facilitate cross-border payments, and expand banking services for millions of citizens who are not connected to the financial system, in addition to enhancing transparency.
The report mentioned that several African countries have begun practical experiments, including Nigeria with its “eNaira,” Ghana with the “eCedi,” and South Africa through the “Khokha” project, while Morocco is testing the “eDirham.” It emphasized that moving to a broader level requires coordinated efforts, standardized criteria, and the involvement of the private sector from the outset.
The source highlighted that adopting a regionally unified digital currency could serve as an effective tool to enhance economic integration, especially within monetary unions such as UEMOA, CEMAC, and SADC, as well as in the context of the African Continental Free Trade Area, allowing for immediate and low-cost settlement of trade exchanges, and reducing reliance on the dollar in intra-African trade.
The report also emphasized that the success of such projects requires a robust and secure technological infrastructure capable of operating even in areas with limited connectivity, as well as a regulatory framework that protects personal data, prevents money laundering, and ensures interoperability among various payment systems. It stressed the importance of awareness campaigns and training for citizens to foster trust and facilitate the use of these tools.
The report noted that the private sector is also presenting alternatives, including digital currencies that are experiencing increasing adoption despite their volatility, as well as stablecoins tied to the dollar that are used on certain platforms as a primary means of exchange. However, it warned that this model could threaten the financial sovereignty of African countries, as it grants monetary authority comparable to that of central banks to private entities.
