THELOGICALINDIAN - Six East African states are reportedly set to analyze the achievability of application axial coffer agenda currencies CBDC as an another to their aggregate acquittal arrangement The six countries which are all associates of the East Africa Community EAC trading affiliation are acquisitive this another will actualize a alleyway that leads to the accomplishment of a distinct bill for the arena by 2024
The Moribund EAPS
The revelations of the EAC’s agenda bill plan chase the affiliation secretariat’s “consultancy alarm for a achievability study” on the planned advancement of the East African Payment System (EAPS). Since its barrage in 2024, the EAPS has bootless to action appropriately due to affiliate states’ disbelief of anniversary other’s currency.
Consequently, according to a report, the EAC says the called “consultant will conduct an basic scoping of such developments.” The adviser is analogously accepted to conduct an basic scoping for “emerging technologies and their adoption, including but not bound to technologies involving the use of Central Bank Digital Currencies (CBDCs).”
Distrust Between Member States
Meanwhile, the aforementioned address quotes the EAC secretariat account some of the key challenges that accept been empiric with the EAPS. The secretariat said:
The secretariat adds that the “lack of a centralised user abutment agency that resolution of any problems with the acceptance of the arrangement takes a continued time.” This in about-face impacts abnormally on the operations of the system.
“The actuality the arrangement does not accomplish on a distinct belvedere additionally agency that centralised clamminess and accessory administration is not possible,” concludes the EAC secretariat.
According to the report, Kenya currently dominates affairs in the EAPS, which allows citizens of affiliate countries to accomplish and accept payments in bounded currencies. The added bristles affiliate states that will be affair to the CBDC basic action are Uganda, Tanzania, Rwanda, Burundi, and South Sudan.
What are your thoughts on the EAC members’ plan to actualize a CBDC? You can allotment your angle in the comments area below.
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