The Harare Institute of Technology has revealed plans to create a Central Bank Digital Currency (CBDC).
The HIT is a higher learning institution in Zimbabwe.
The institution’s Vice Chancellor, Quinton Kanhukamwe made this known during the recent graduation ceremony of students from the institution.
Kanhukamwe said that the CBDC will help in addressing the challenges of currency manipulation, cash hoarding, and unsanctioned foreign exchange deals as well as eliminating illegal foreign exchange deals in the country.
He said that the introduction of a CBDC would reduce the cost of printing money.
According to him, with the inclusion of the unbanked population in the formal banking sector, an increase in the growth of SMEs is expected.
Kanhukamwe said that the blockchain-anchored CBDC can potentially bring the unbanked into the formal banking system.
“Many times, the unbanked population believes that the traditional financial sector is only there to rip off all their earnings. It [CBDC] has the capacity to reduce significantly the regulatory costs for central banks thus reducing the transactional costs that will ultimately reduce the costs of service. As a result, there is [a] significant reduction in fees.” he said.
The HIT said that a roadmap for deployment of the CBDC has been outlined, with a consultation paper to be issued soon.
Recall that the Reserve Bank Of Zimbabwe (RBZ) in its last monetary policy statement, announced that it has developed a roadmap for the CBDC.
The CBDC did not, however, give a timeline for the launch of the CBDC nor name any partners.