Bank of Zambia’s CBDC study is expected to end by Q4 2022. In the past 2 years, all central banks have begun studying central bank digital currencies and are looking for ways to implement them in their economy. While some have already released their own versions, most are still doing their research. It is expected that a lot of this research for many central banks will be over by 2022 end or mid-2023, and banks will be ready to launch.
Bank of Zambia’s CBDC study
There has been a statement from the central bank of Zambia saying they are expecting the CBDC research to end by 2022 end. In this research, they are looking at the positives and negatives of creating a central bank digital currency. So, basically, they will decide if they will even launch a CBDC or not. For such a thing, it seems like a lot of work to be put in for just research.
The reason for considering a CBDC creation is the possibility that it will reduce the financial gap between the rich and poor. At the same time, it might also help reduce transaction costs. So, it makes sense they want to double confirm if the launch could actually have these effects. Nkatya Kabwe said, “The results of the research will form part of the input in the policy considerations on whether to introduce a central bank digital currency in Zambia.”
Other benefits of bringing CBDC
While central bank digital currencies do not compare to cryptocurrencies in any way, there are some specific benefits of having them in the economy. First, two have already been talked about above; the third is that having a CBDC will make it easier to trace payments and increase the safety of systems. Since the Bank of Zambia has confirmed that they won’t be making crypto legal tender, it is clear that CBDCs would play an important role. It will be their take on blockchain technology and will offer many an alternative to owning volatile cryptocurrencies.
What are your thoughts as reports suggest that the Bank of Zambia’s CBDC study will end by Q4 2022? And do you think that there are actually any good reasons to launch CBDCs? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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