The Kingdom of Eswatini is considering introducing a central bank digital currency (CBDC), joining the growing list of African countries exploring the feasibility of electronic currency.
Central Bank of Eswatini (CBE) He said The German technology group has appointed Giesecke + Devrient (G + D) to research and explore the possibilities of digital Lilangeni (the country’s currency) to complement banknotes.
The CBDC project will include concept design, and other considerations such as governance, accessibility, interoperability, security and programmability of a potential digital currency. The advisors are expected to assist the Central Bank of Egypt in making an informed decision on whether or not to adopt electronic currency, and how best to disseminate it.
The project follows the completion of the first phase of a diagnostic study for the 2020 CBD by the Central Bank of Egypt, which “presented the strongest and direct opportunity for the adoption of a digital currency in Eswatini.”
“The Central Bank of Eswatini is delighted to have G+D as a technical advisor to walk with us on our journey as we explore and formulate foundational policy considerations and use cases for local central bank currencies. We are confident that G+D’s technological expertise and strong regional presence on our continent will allow us to realize all the advantages. possible for Digital Lilangeni and ensure that we are fully equipped to issue CBDCs in the future, said Central Bank Governor, Dr. Phil Mnessi.
G+D recently helped Ghana experiment with retail merchandise digital currencies, making it the second country after Nigeria to conduct such a trial. The Nigerian eNaira was introduced in October last year, and by August 2022 it was used to conduct transactions worth 4 billion yen ($9.2 million). Kenya, Namibia, Tanzania, Uganda, and Zambia are some of the other African countries that are looking to digital currencies to enhance their access to financial services, lower costs, interoperability, and enhance cross-border payments.
Unlike cryptocurrencies such as Bitcoin and Ethereum, CBDCs are developed by central banks and are tied to the fiat currencies of countries.
