Zimbabwe University To Develop A Central Bank Digital Currency

Zinger Key Points
  • The Harare Institute of Technology in Zimbabwe is developing a central bank digital currency.
  • Eradicating illegal foreign exchange transactions, cash hoarding and currency manipulation are goals.

The Harare Institute of Technology in Zimbabwe is developing a central bank digital currency (CBDC), according to the institute’s Vice Chancellor Quinton Kanhukamwe.

Kanhukamwe stated the proposed CBDC would aid in the eradication of issues such as currency manipulation, cash hoarding and unlawful foreign exchange trades.

Also Read: White House Publishes Framework For Crypto Regulation: Could There Be A US Central Bank Digital Currency And More

Speaking at a graduation ceremony, also attended by Zimbabwean President Emmerson Mnangagwa, Kanhukamwe explained how the blockchain-based CBDC could bring those not using banks into the established banking system in his remarks.

“Many times, the unbanked population believes 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 [a] significant reduction in fees,” he said, as reported by the Herald.

Lowering The Cost Of Printing Money

The vice chancellor said if formal banking services were made available to the unbanked people, it might start a domino effect that boosts sales for small- to medium-sized businesses.

According to Kanhukamwe, using a CBDC would enable the central bank to produce money for less money.

The Reserve Bank of Zimbabwe (RBZ), in its last monetary policy, stated it created a roadmap for the CBDC and that a public consultation document would promote a wide and transparent public discourse regarding the possible advantages and hazards of CBDC.

The RBZ's most recent update on the CBDC, like its earlier ones, didn't specify the time frame for its intended implementation.

The statement also didn't mention whether or not the RBZ is collaborating with another organization to achieve this goal.

Photo: SevenMaps via Shutterstock

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