Kenya Central Bank Governor: Low Smartphone Penetration Working Against Plan to Launch CBDC – Because of the large number of non-smartphones in use in Kenya, Patrick Njoroge, the governor of the Kenyan central bank, believes that establishing a central bank digital currency (CBDC) would be inappropriate and would result in many Kenyans becoming financially excluded.
Patrick Njoroge, the governor of the Central Bank of Kenya, has claimed that the lack of smartphones for more than half of Kenya’s mobile phone customers is working against the country’s intention to establish a CBDC. As a result, the central bank may be pushed to postpone the CBDC’s implementation, he said.
According to Njoroge’s remarks, Kenyans without smartphones will likely be kept out if digital money is implemented.
This blockade of non-smartphone users, in return, goes against the central bank’s goal of reducing the number of people who are financially disadvantaged.
Also Read: FCA Extends Deadline for Crypto Firms to Meet Regulatory Requirements in UK
Njoroge elaborated:
“The CBDC will set a minimum technological requirement, which may be a fourth-generation environment. There is a point to be made that such a development might lead to increased financial exclusion, with some people losing access to the financial system purely as a result of our adoption of a CBDC. This is something we’ll have to be mindful of.”
The governor suggested that the CBK would have to wait until Kenyans have increased access to smartphones. According to the Business Daily report, non-smartphones or feature phones account for about 56 percent or 33 million of Kenyans’ 59 million mobile devices. Due to the fact that feature phones do not have internet access, they are unable to use a CBDC.
Kenya Central Bank Governor: Low Smartphone Penetration Working Against Plan to Launch CBDC – Despite pointing out the potential for a challenge as a result of the CBDC’s introduction, Njoroge is cited in the report saying that a CBDC would be “safer and more trustworthy” than privately produced digital currencies.
Also Read: IMF Warns Russia Sanctions Threaten to Undermine US Dollar Dominance
Meanwhile, Njoroge’s latest comments on the central bank’s proposal to introduce a digital currency come only weeks after the Central bank of Kenya issued a study outlining the advantages and hazards of a CBDC. Members of the public are also encouraged to provide feedback on the CBDC, according to the central bank.
