Nigeria took a bold step to become the first country to launch a CBDC in Africa. Following this advancement, numerous countries have increased their efforts to explore the CBDC area, and the United States is not far behind.
The Federal Reserve Board issued a discussion paper on Thursday that evaluates the benefits and drawbacks of a potential U.S. central bank digital currency, or CBDC.
It welcomes public participation and is the first stage in a dialogue about whether and how a CBDC could improve the domestic payments system’s safety and effectiveness. The document does not advocate for any particular policy outcome.
The Federal Reserve said in a long-awaited discussion paper that while creating an official digital version of the US dollar could speed up payments and give families a safe option as payments technology improves, it would also pose financial stability risks and privacy concerns.
Africa’s first digital currency, the eNaira has recorded over 34,000 transactions on the eNaira platform, amounting to over N188 million ($452,124.94) as of mid-December 2021.
Over 488,000 people have downloaded the consumer wallet and about 78,000 merchants from more than 160 countries have enrolled according to the CBN.