Africa
Working group minutes: facing up to CBDC adoption challenges
Participants at Cape Town meeting saw drawbacks to digital currency versus other payment methods
Central banks split on whether CBDC will impact seigniorage
Some respondents see seigniorage depending on CBDC design choices
AML and inclusion go hand in hand – Eswatini deputy governor
Dlamini-Kunene says efforts to tackle crime did not have to result in exclusionary policies
Central banks widely exploring RTGSs’ interoperability with CBDCs
High income institutions more likely to research the issue than their middle income counterparts
African reserve managers shed light on post-Covid strategies
Volatile environment has led to more experimentation, speakers tell Central Banking Spring Meetings
Half of institutions have a central data collection centre
Respondents with data collection system more likely to automate regulatory filings
Flexibility and business continuity seen as key benefits of cloud services
But three in four fintech teams point at privacy as concern
Central banks more likely to use software-based cloud services
Cloud widely used for cyber security and other applications
AI spreads further among fintech teams
Centralised fintech teams more likely to apply AI/ML to sentiment analysis
Half of planned CBDCs designed to be programmable
Two-thirds of wholesale CBDCs likely to be programmable
Most central banks without CBDC mandate engaged in retail projects
Only one in three banks has a legal mandate for CBDC issuance, but many are still working on digital currency
American central banks less likely to struggle with fintech recruitment
But American banks face toughest battle for talent retention
Rwanda holds rates at 6.5%
Central bank expects inflation to remain within target
Fintechs more likely to be licensed in upper-middle income countries
Licence issue rate across central banks broadly unchanged year on year
Nigerian central bank to cap fees for ATM withdrawals
Move meant to curb rising costs of withdrawals
Cyber, suptech and CBDCs are top areas for fintech research
Central banks with fintech strategy more likely to prioritise CBDCs
Zambia raises rates amid persistently high inflation
Central bank does not expect 6–8% target to be reached until at least 2027
Cyber security and legacy systems still greatest technology challenges
But concerns differ by central banks’ CBDC mandate
Central banks lacking fintech unit less likely to have a strategy
Respondents’ strategic priorities include digitalisation, regulations, collaborations and others
Treasury officials charged over Bank of Uganda hacking
Ministry’s top accountant among those accused of corruption and abuse of office
Four in five central banks lack chief fintech officers
Centralised fintech teams more likely to have chief fintech officers