wazua Thu, Apr 30, 2026
Welcome Guest Search | Active Topics | Log In

Central Bank Digital Currency (CBDC) in Kenya
Options
Previous Topic · Next Topic
kmucheke
#1 Posted : Friday, February 18, 2022 2:20:37 PM
Rank: Member

Joined: 3/16/2019
Posts: 313
Kenyan's are already familiar with the digital version of the Kenya shiling (legal tender) in form of MPesa (or any other mobile money) or bank balances. In case of MPesa the digital money is held in trust by a 3rd party in this case a commercial bank. On the other hand the Central Bank digital currency is electronic money issued by the Central bank without any third party, it is the legal tender but in digital form instead of physical form (coins or notes). Likely benefits are deepening of financial inclusion, lowering of transaction costs, reduced risks since no third party is involved and many others. The downside is that cental bank will be in competition with commercial banks and services like Mpesa. See press release here. Find the discussion paper here. You can also make your submissions here.
Back to top
  |
obiero
#2 Posted : Saturday, February 19, 2022 8:53:27 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,321
Location: nairobi
kmucheke wrote:
Kenyan's are already familiar with the digital version of the Kenya shiling (legal tender) in form of MPesa (or any other mobile money) or bank balances. In case of MPesa the digital money is held in trust by a 3rd party in this case a commercial bank. On the other hand the Central Bank digital currency is electronic money issued by the Central bank without any third party, it is the legal tender but in digital form instead of physical form (coins or notes). Likely benefits are deepening of financial inclusion, lowering of transaction costs, reduced risks since no third party is involved and many others. The downside is that cental bank will be in competition with commercial banks and services like Mpesa. See press release here. Find the discussion paper here. You can also make your submissions here.
It’s not even needed.
COOP, IMH, KEGN, KQ, MTNU
Back to top
WWW
  |
kmucheke
#3 Posted : Monday, February 21, 2022 3:42:32 PM
Rank: Member

Joined: 3/16/2019
Posts: 313
obiero wrote:
kmucheke wrote:
Kenyan's are already familiar with the digital version of the Kenya shiling (legal tender) in form of MPesa (or any other mobile money) or bank balances. In case of MPesa the digital money is held in trust by a 3rd party in this case a commercial bank. On the other hand the Central Bank digital currency is electronic money issued by the Central bank without any third party, it is the legal tender but in digital form instead of physical form (coins or notes). Likely benefits are deepening of financial inclusion, lowering of transaction costs, reduced risks since no third party is involved and many others. The downside is that cental bank will be in competition with commercial banks and services like Mpesa. See press release here. Find the discussion paper here. You can also make your submissions here.
It’s not even needed.
Mpesa charges are high. Cross border sending charges also need to come down.
Back to top
  |
aemathenge
#4 Posted : Tuesday, February 22, 2022 9:49:20 AM
Rank: Elder

Joined: 10/18/2008
Posts: 3,434
Location: Kerugoya
Copy and Paste Extract: Banks are middlemen in the same way we have maize brokers, tomato brokers and so on. But what if we didn’t need these banks to make payments and deposits? What if we could cut out the middleman and have people and businesses transacting directly with the central bank using an advanced and secure automated system? Mind-blowing, right? Well, that’s what the central bank digital currencies (CBDC) might do and is likely to be the reality in coming decades. Competition might force banks to increase interest rates on deposits to compete. It would also attract more competitive and faster payments, which would further cut transactions costs. Banks would be forced to find more creative ways to provide value to customers to stay in business as they have done in the past. Instead of payments technology like M-Pesa or Jumia or Flutterwave first transacting with the bank, they could just set up accounts with the central bank and, in the process, significantly cut the cost and turnaround time of transactions as observed from China’s CBDC trial. Source: The Business Daily 22 February 2022
Back to top
  |
Much Know
#5 Posted : Tuesday, February 22, 2022 11:38:11 AM
Rank: Elder

Joined: 12/6/2008
Posts: 3,585
In a way it is very old 2017 story in the financial technology sector. We (our think tank) believe it is part of the global financial bombshell that the president was talking in maasai Mara etc Huduma card https://newsroom.masterc...y-mastercard-technology/ Our predictions Banks have the upper hand in Nairobi, so mpesa shops may begin to dissapear there, though the shops will also get a boom for "cashing out". However crisp new notes are not about to go out of fashion soon and if one mpesa ATM can replace 20 mpesa shops dishing out crisp notes at my rural location safaricom also has a huge lifeline. Even so called bitcoins had to make atms, a card is far superior to a phone in the world of financial technology when it is in the hands of any "clean" hustler!
Ras Kienyeji Man
Back to top
  | | Edit by user: Tuesday, February 22, 2022 11:43 AM | Reason: Not specified
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.