Eswatini recently became the latest African country to jump on the central bank digital currency (CBDC) bandwagon. This is because the country’s central bank has chosen Giesecke Devrient, a Germany-based technology company, as its partner. The agreement signed by the two parties aims to increase “understanding of the actual implementation of CBDC in Eswatini.”
Retail CBDC offers the strongest adoption opportunity
The southern African nation of Eswatini (formerly Swaziland) became the latest African country to recently indicate its intention to issue a digital currency when it was revealed that the Central Bank of Eswatini (CBE) has appointed a German company called Giesecke Devrient as its technology partner.
Astatementissued by the technology company said that an agreement to this effect was signed at the recent annual meetings of the International Monetary Fund (IMF) and World Bank Group.
Eswatini’s selection of the German firm comes nearly two years after the German firm completed a so-called CBDC diagnostic study, which found that “retail CBDCs offer the strongest and most direct opportunity for the adoption of Eswatini digital currency.” The recently signed agreement is said to allow both parties to further “understand the practicalities of implementing CBDC at Eswatini.”
ensure that Eswatini is fully equipped to issue CBDC
Commenting on CBE’s joining with Giesecke Devrient, the bank’s President Phil Mnisi said.
Central Bank of Eswatini is pleased to welcome G+D as a technical consultant in our journey to explore and formulate the underlying policy considerations and use cases for a localized CBDC G+D’s technical expertise and our strong continental presence, we are confident that we will be able to realize all possible benefits of the Digital Relangeni and ensure that we are fully equipped to issue CBDC in the future.”
Meanwhile, Wolfram Seidemann, CEO of the technology company, suggested that Eswatini is one of the countries on the African continent “taking the first step towards retail CBDCs.” Seidemann, who also works with Ghana’s central bank, said he was honored to be part of Eswatini’s CBDC journey.
Like its African counterparts, the CBE is eager to roll out CBDC and overcome the problems associated with fiat currency systems; while several African countries eager to implement CBDC are researching or piloting, Nigeria’s central bank is Africa’s the only institution in Africa that has introduced a digital currency.
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