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CBK digital currency plan freeze welcome
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. FILE PHOTO | SHUTTERSTOCK
The Central Bank of Kenya’s (CBK) decision to delay the implementation of its digital currency is prudent in light of the concerns that such a move could destabilise the banking system and its critical role in financial intermediation.
Global regulators have been thinking of the best ways to respond to the mushrooming of virtual currencies and financial assets, also known as cryptocurrencies issued by individuals and companies operating under little to no regulation.