#CBDCs #ecommerce #africa #payments #digitalpayments #fintech
The rollout of Central Bank Digital Currencies (CBDCs) is gaining momentum globally, with 70% of central banks aiming to issue one in the near future. While Africa isn’t necessarily leading the chase, it’s important to consider the potential impact of CBDCs on eCommerce and online payments across the continent.
Here are some potential implications:
- Faster and Cheaper Transactions: CBDCs could significantly reduce transaction costs and processing times for online payments, benefiting both businesses and consumers. This is especially relevant in Africa, where high transaction fees can be a barrier to eCommerce adoption.
- Financial Inclusion: CBDCs have the potential to increase financial inclusion by providing access to digital payment systems for those who are currently unbanked or underbanked. This could open up new markets for eCommerce businesses in Africa.
- Improved Security: CBDCs are backed by central banks and can be more legitimised and user-friendly than some forms of digital currency. This could increase trust and confidence in online payments, boosting digital currency adoption and fueling eCommerce growth.
Challenges: Implementing CBDCs requires significant technological upgrades and infrastructure development. African countries will need to invest in robust and secure digital payment systems to support CBDC adoption.
Progress in Africa:
- Ghana and South Africa are running pilot projects.
- Nigeria’s eNaira was made them the first African nation with a live CBDC.
- Kenya, Rwanda, Morocco, and Tunisia are studying CBDC possibilities.