- Bank of Namibia has already begun examining CBDCs.
- The central bank’s digital money is issued and denominated in the national unit.
Namibia’s central bank has announced plans to develop a central bank digital currency (CBDC) after introducing the bank’s FinTech regulatory framework. In a recent interview, Bank of Namibia (BON) governor Johannes Gawaxab confirmed the plan. BON has already begun examining CBDCs, which, according to him, are now a “reality” that can’t be overlooked.
An electronic version of central bank money, CBDCs have the potential to be widely adopted as a means of storing value and making payments by individuals and companies alike. As with physical currency in circulation, the central bank’s digital money is issued and denominated in the national unit (e.g., the US dollar).
Clear Digital Currency Agenda
Gawaxab implied in comments reported by Namibia Daily News that rising interest in privately created cryptocurrencies may have compelled the central bank to intervene.
Gawaxab stated:
“The number and value of cryptocurrencies have surged, raising the possibility of a financial world operating outside the control of governments and central banks. There is thus a need for central banks to have a clear digital currency agenda to reinforce Central Bank authority over money and maintain control over the payment system.”
It is noted in the report that Gawaxab insists that Namibia’s planned digital currency agenda should only be adopted if it is the result of a joint effort by the government, financial institutions, and the general population. On the other hand, the BON’s governor urged the country’s policymakers to be wary of the possible effect of a digital currency launch on financial stability.
