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Zimbabwe Tertiary higher Learning Institution, the Harare Institute of Technology (HIT), is developing a central bank digital currency (CBDC). The central bank it is developing for however seems Non-committal to the idea of the CBDC and rather sitted on the fence on the subject.
HIT Vice Chancellor Quinton Kanhukamwe, said the digital currency is expected to help get rid of vices such as currency manipulation and unsanctioned foreign exchange deals.
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya in his last monetary policy statement, said the central bank had developed a roadmap for the CBDC. The central bank Governor said he would unveil a public consultation paper which he said would foster “a broad and transparent public dialogue regarding the potential benefits and risks of CBDC.”
Dr Mangudya however would not be drawn into confirming whether the apex bank would adopt this digital currency as in the past he has spoken firmly against block chain currency.Just like in similar previous updates about the CBDC, Governor Mangudya’s latest statement doesn’t state the date when the central bank is hoping to roll out the CBDC. The statement also does not state if the RBZ Governor is working with another entity towards this objective. However HIT Vice Chancellor Kanhukamwe’s statements in the public domain indicate they may be developing the CBDC for the central bank.
Ridding Illegal Foreign Exchange Deals has been a thorn in the side of Zimbabwe’s Monetary and fiscal Authorities.The Harare Institute of Technology will develop the central bank digital currency (CBDC), according to the organization’s vice chancellor Quinton Kanhukamwe.
Kanhukamwe, said envisaged “CBDC is expected to help eliminate vices such as currency manipulation, the hoarding of cash, as well as illegal foreign exchange deals.”
Kanhukamwe, who spoke at a graduation ceremony attended by Zimbabwean President Emmerson Mnangagwa, recently revealed how the blockchain-anchored CBDC can potentially bring the unbanked into the formal banking system. The Vice Chancellor said:
“Many at times, the unbanked population believe 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 significant reduction in fees.”
Vice Chancellor Kanhukamwe also added that this will help in reducing Money Printing Costs.
“Once formal banking services are available to the unbanked population, this can potentially set off a chain reaction that will result in increased business for small-to-medium enterprises.
“Using a CBDC will help the central bank reduce the cost of printing money,” Kanhukamwe added.
The economic troubles of many countries have been solved through the introduction of the CBDC and digital currencies have provided many Africans with an escape route.
The Central Bank of Brazil recently confirmed that they will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also confirmed how CBDC has changed economies world over.
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