Bank run scare on CBK plan to issue digital currencies

Kenyan financial industry players, including banks, have warned that issuing a Central Bank Digital Currency (CBDC) may spark the collapse of an unspecified number of banks as customers rush to convert their money from the current form of deposits.

A document by the Central Bank of Kenya (CBK) incorporating feedback from diverse sources such as individuals, public institutions and commercial banks shows many of them are concerned about the possibility of the digital currency triggering a bank run.