Last week, the Central Bank of Kenya invited the public for comments on a very interesting subject; central bank digital currencies (CBDCs). The assessment will be on whether there’s a potential for their use in the country.
To keep things simple, let’s first define CBDCs. These are digital forms of a country’s fiat currency that are also a claim on the central bank. Instead of printing money, the banking regulator issues electronic coins or accounts backed by the full faith and credit of the government.
