Browsing: Kenya tops P2P transactions

  • The Central Bank of Kenya has published a discussion paper on a CBDC for the public to submit their views
  • CBK governor is optimistic about the country adopting a central bank digital currency
  • Written representations and submissions should be sent to the Central Bank of Kenya by May 20, 2022, at 5.00 p.m.

The Central Bank of Kenya has published a discussion paper on a central bank digital currency (CBDC) for the public to submit their views.

The discussion paper has invited comments from the public to be reviewed when assessing the potential use case of a CBDC in Kenya. The paper also scrutinizes the applicability of a CBDC in Kenya, if adopted, as part of the Central Bank’s initiative to ensure informed policy decisions regarding innovations.

The public’s written representations and submissions should be sent to the Central Bank of Kenya by May 20, 2022, at 5.00 p.m.

  • In the last 15 years, remittance inflows to Kenya have increased tenfold, reaching a record of US$3.72 billion in 2021
  • The number of active mobile money accounts went up from 66.59 million in January to 66.88 million in October 2021
  • Digital payments include mobile money transfers, card payments, contactless cards and bank transfers

Digital payments in Africa

With the increased penetration and mobile phones in Africa, adopting a digital cashless mode of payments is on the rise.

In a survey by Visa highlighting the impact of digital platforms, Kenyans preferred to use cashless payments to conduct business transactions more than South Africans and Nigerians. About 71 per cent of businesses in Kenya use cash as a means of payment, compared to 91 per cent in South Africa and 94 per cent in Nigeria.

Digital payments include mobile money transfers, card payments, contactless cards and bank transfers.

Read: The case

  • The Central Bank of Kenya (CBK) has warned local commercial banks against dealing with cryptocurrencies transactions or face penalties for non-compliance
  • Some banks have issued notices to customers buying cryptocurrencies, warning them of the permanent closure of their accounts
  • Despite the stance by the CBK against cryptocurrencies, Kenya leads Africa in crypto adoption and stands fifth in the world

The Central Bank of Kenya (CBK) remains adamant about lifting the ban on cryptocurrency use in Kenya.

CBK Governor Dr Patrick Njoroge said on January 27 that the bank’s position on the restrictions of cryptos like bitcoin in Kenya remains in place.

The CBK has also issued circulars to local commercial banks warning them against dealing with cryptocurrencies transactions or face penalties for non-compliance. The last circular was issued in 2018 and has remained in action up until now.

While delivering the monetary policy announcement where the monetary policy committee retained …