Africans are not seating quiet on the recent Central Bank Digital Currency (CBDC) war most especially between U.S and China. East African Island nation, Mauritius has taken a bold step into accepting this modern change by piloting a CBDC in 2021.
Central Bank of the Republic of Mauritius recently revealed that it is already working together with the International Monetary Fund (IMF) to implement a CBDC before the year rolls out. The Bank of Mauritius is currently consulting with IMF on the possible CBDC designs and tentative digital currency plans.
Speaking during the Consensus 2021 event, The Bank of Mauritius Governor, Harvesh Seegolam stated that the East African island nation is in the midst of finalizing its position papers on a CBDC which is expected to be published with concrete samples. Thereafter, the Governor expressed his opinion on CBDC and its global appeal, stating that “CBDCs will be here to complement, and to address gaps that the traditional monetary system is not able to fulfill.”
Meanwhile, Seegolam also highlighted the trilemma concerns facing central bankers when it comes to CBDCs, which include: Compliance, Security and Privacy.
This recent development has made Mauritius the second country in Africa to confirm that its working on a CBDC with South Africa already leading on the continent after recently announcing that it has commenced its CBDC trials.
It is worthy to note that the Mauritian CBDC is not replacing cash, but rather, complementing the exisiting monetary system.