Ethiopia is preparing to introduce a central bank digital currency (CBDC) to modernize financial system.

From Cointelegraph: 2024-06-17 17:24:15

The country is preparing for the introduction of a central bank digital currency (CBDC) by establishing a legal framework and regulatory sandbox. This move is seen as necessary to facilitate the implementation of the CBDC.

The government is taking steps to ensure that the necessary infrastructure and regulations are in place for the successful launch of the CBDC. This includes setting up a regulatory sandbox to test the new digital currency before its full-scale introduction.

The introduction of a CBDC is part of the government’s efforts to modernize the country’s financial system and keep pace with technological advancements in the digital economy. The move is aimed at increasing financial inclusion and providing a more efficient payment system for businesses and consumers.

With the establishment of a legal framework and regulatory sandbox, the country is signaling its commitment to embracing the benefits of digital currencies while ensuring that appropriate safeguards are in place to protect consumers and maintain financial stability. The successful implementation of the CBDC will depend on a careful balance of innovation and regulation.

Read more at Cointelegraph: Ethiopia takes first step toward CBDC in economic reform