Business / Economy
Zimbabwe explores option of issuing digital currency
13 Aug 2023 at 04:06hrs | Views
The Reserve Bank of Zimbabwe (RBZ) is exploring the option of issuing digital currency, a move that could revolutionize the way money is used in the country.
The central bank said in a statement that it is "conducting research on the feasibility of issuing a central bank digital currency (CBDC) in Zimbabwe."
A CBDC is a digital version of a fiat currency, such as the Zimbabwean dollar. It is issued and controlled by the central bank, and it can be used to make payments online or in person.
The RBZ said that a CBDC could have a number of advantages, including:
However, the RBZ also said that there are some risks associated with CBDCs, such as:
The RBZ said that it will continue to research the feasibility of issuing a CBDC and that it will make a decision on whether or not to do so in the future.
The exploration of a digital currency by the RBZ is a significant development, and it could have a major impact on the way money is used in Zimbabwe. It will be interesting to see how the central bank proceeds with its research and whether or not it decides to issue a CBDC in the future.
In addition to the points mentioned in the article, it is also worth noting that a CBDC could help to improve financial inclusion in Zimbabwe. Currently, a large proportion of the population does not have access to traditional banking services. A CBDC could make it easier for these people to participate in the formal economy.
Overall, the exploration of a digital currency by the RBZ is a positive development. It has the potential to make payments faster, cheaper, and more secure. It could also help to reduce crime and increase financial inclusion. It will be interesting to see how the central bank proceeds with its research and whether or not it decides to issue a CBDC in the future.
The central bank said in a statement that it is "conducting research on the feasibility of issuing a central bank digital currency (CBDC) in Zimbabwe."
A CBDC is a digital version of a fiat currency, such as the Zimbabwean dollar. It is issued and controlled by the central bank, and it can be used to make payments online or in person.
The RBZ said that a CBDC could have a number of advantages, including:
- It could make payments faster and cheaper.
- It could reduce the use of cash, which could help to reduce crime.
- It could make it easier for people to access financial services.
However, the RBZ also said that there are some risks associated with CBDCs, such as:
- The potential for fraud and cybercrime.
- The impact on financial stability.
- The need for a reliable and secure infrastructure.
The RBZ said that it will continue to research the feasibility of issuing a CBDC and that it will make a decision on whether or not to do so in the future.
The exploration of a digital currency by the RBZ is a significant development, and it could have a major impact on the way money is used in Zimbabwe. It will be interesting to see how the central bank proceeds with its research and whether or not it decides to issue a CBDC in the future.
In addition to the points mentioned in the article, it is also worth noting that a CBDC could help to improve financial inclusion in Zimbabwe. Currently, a large proportion of the population does not have access to traditional banking services. A CBDC could make it easier for these people to participate in the formal economy.
Overall, the exploration of a digital currency by the RBZ is a positive development. It has the potential to make payments faster, cheaper, and more secure. It could also help to reduce crime and increase financial inclusion. It will be interesting to see how the central bank proceeds with its research and whether or not it decides to issue a CBDC in the future.
Source - Byo24News
