TL; DR Breakdown
- Namibia wants to create its CBDC
- The country wants to challenge crypto with the CBDC
- BON Governor breaks down CBDC plans
The central bank digital currencies era is now upon us, with many countries looking in that direction. This is because most countries know and see the value that a DLT based currency will provide. Thus, seeing them make quality time to research and try to develop a digital currency based on their native currencies. Although China first floated this idea, other countries have soon assumed their positions, with some beating the Asian country to the finish line. In a recent update, Namibia is looking to research and create its CBDC.
Namibia wants to challenge crypto with CBDC
According to an executive from the Central bank in Namibia, the financial institution has been taking steps to see it float its CBDC. However, the executive has warned that launching a CBDC doesn’t come without some financial implications that the country must accept.
In his statement, Johannes Gawaxab mentioned that CBDCs had become a reality everyone must live with. The governor also said that the increased adoption of digital assets around Namibia was also another pivotal factor in the move that they just made. He said that with digital assets rising in terms of values and uses, it is paramount to note that finance is gradually moving outside of the control of financial institutions across the world.
BON Governor breaks down CBDC plans
Gawaxab also drummed up the need for central banks to follow Namibia’s initiative and create their digital currency. The governor feels that they can regain control of digital assets’ influences on the economy. Going by the idea around Namibia concerning the digital currencies, Gawaxab wants to only move forward with the idea of participants in government seeing it as realistic. With this, the country will hold a consultation forum where it will likely consider input from consultants and developers across Namibia.
It will also throw a consensus to the general public after they are done with the consultation period. However, the governor also wants lawmakers to be abreast of the situation pending when the CBDC will be rolled out. This will help them consider certain legal aspects of the digital currency. In his final note, Gawaxab talked about the impact of the digital currency on the economy in the country. He wants the country to be aware of the potential financial impact they might experience should the launch go forward.
