• About Us
  • Contact
Wednesday, March 29, 2023
No Result
View All Result
NEWSLETTER
The Business Wiz
  • Home
  • Featured News
  • Economic
    • Currency
  • Investment
  • Markets
    • Stock Market
  • Sectors
    • Agriculture
    • Commodities
      • Markets
    • Construction
    • Energy
    • Financial Services
    • Information Technology
    • Infrastructure
    • Manufacturing
    • Markets
    • Mining
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation
  • Home
  • Featured News
  • Economic
    • Currency
  • Investment
  • Markets
    • Stock Market
  • Sectors
    • Agriculture
    • Commodities
      • Markets
    • Construction
    • Energy
    • Financial Services
    • Information Technology
    • Infrastructure
    • Manufacturing
    • Markets
    • Mining
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation
No Result
View All Result
The Business Wiz
No Result
View All Result
Home Currency

Lessons on digital currencies from mobile money

by Web Admin
21/02/2023
in Currency
0
Lessons on digital currencies from mobile money
Share on FacebookShare on Twitter

Central Bank Digital Currencies have been touted as a potential solution to avert risks posed by cryptocurrencies. The International Monetary Fund says the centrally issued fiat currencies can offer an alternative to highly volatile crypto assets, easing remittance and cross-border payments without the corresponding risks to countries’ monetary sovereignty.

But experts warn that this could result in more damage than good to economies if not done the right way.

A research commissioned by charity organisation Friedrich Naumann Foundation – and done by economist Aaron Thegeya and blockchain expert Prof Bitange Ndemo – shows that the mobile money industry has crucial lessons for successful implementation of CBDCs.

Central Bank Digital Currencies have been touted as a potential solution to avert risks posed by cryptocurrencies. The International Monetary Fund says the centrally issued fiat currencies can offer an alternative to highly volatile crypto assets, easing remittance and cross-border payments without the corresponding risks to countries’ monetary sovereignty. PHOTO / COURTESY.

In a policy paper titled, From Mobile Money to Digital Cash, the experts note that the continent’s mobile money experiences can inform the right regulations, technologies, economic policies and socio-cultural dogmas in the era of digital money.

Long implementation history

“While CBDCs are still nascent, mobile money ecosystems have a long history of implementation spanning over a decade, and have had a transformative impact on financial systems in a large number of countries around the world,” the paper reads.

As more countries begin to experiment with the novel technology, experts warn central bankers not to repeat mistakes made in mobile money implementation.

Regulations, the experts said, could make or break the continent’s digital currencies and must be keenly calibrated to ensure enough headroom for innovation but also stringent enough to curtail illicit activity and uphold integrity.

For instance, there has been no regulation in many jurisdictions to ensure mobile money costs are progressive enough, resulting in high costs to transact small amounts. The research shows that this pricing model “discourages use [of mobile money] for the completion of some transactions.”

Pricing systems

“The imposition of progressive, or at the very least non-regressive pricing systems for digital products and services offered through CBDCs will maximise uptake, and support financial inclusion,” the experts said.

Central bankers should also be aware of the potential for CBDCs, just like mobile money, to drive inflationary pressures, while facilitating economic growth, the study suggests.

“The regulation of CBDCs should ensure appropriate consideration of macroeconomic concerns, with regulation balancing inflation concerns raised through the increased velocity of money and the increased economic activity supported through digital transactions.”

Considering the continent’s great digital divide, the experts warn that CBDCs should also be deployed in a manner that “must be universally accessible…so that no one is excluded from accessing a service due to interoperability constraints.”

Source: The East African

Tags: #LatestBusinessNews#LatestTanzaniaBusinessNews#TanzaniaBusinessNews
Web Admin

Web Admin

Next Post
Dar resolves to progress Bagamoyo Port project using internal funds

Dar resolves to progress Bagamoyo Port project using internal funds

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Exchange Rate

Exchange Rate USD: Wed, 29 Mar.

Recommended

Global debt sees first annual drop since 2015

Global debt sees first annual drop since 2015

1 month ago
Global central banks aren’t declaring victory over inflation yet

Global central banks aren’t declaring victory over inflation yet

3 months ago

Popular News

    News

    Get latest news from us.


    SUBSCRIBE

    Category

    • Agriculture
    • Aviation
    • Banking
    • Commodities
    • Construction
    • CSR
    • Currency
    • Economic
    • Energy
    • Featured News
    • Financial Services
    • Information Technology
    • Infrastructure
    • Investment
    • Jobs
    • Manufacturing
    • Markets
    • Mining
    • Others
    • Q&A Interviews
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation

    About us

    The Business Wiz (TBW) is Tanzania’s premier one-stop online platform providing in-depth, accurate and timely business news, analysis, commentary and online business information portals and research.

    • About Us
    • Contact

    © 2022 The Business Wiz

    No Result
    View All Result
    • Home
    • Featured News
    • Economic
      • Currency
    • Investment
    • Markets
      • Stock Market
    • Sectors
      • Agriculture
      • Commodities
        • Markets
      • Construction
      • Energy
      • Financial Services
      • Information Technology
      • Infrastructure
      • Manufacturing
      • Markets
      • Mining
      • Real estate
      • Telecomunication
      • Tourism
      • Transportation

    © 2022 The Business Wiz

    en English
    ar Arabiczh-CN Chinese (Simplified)en Englishfr Frenchde Germanit Italianru Russianes Spanishsw Swahili