Ethiopia Establishes Regulatory Structure for Central Bank Digital Currencies

The National Bank of Ethiopia (NBE) has drafted multiple legislative measures, which include the creation of a legal structure for the introduction of a central bank digital currency (CBDC).

As part of its economic reform strategy, the NBE has prepared two legislative proposals. One focuses on establishing a legal framework for the implementation of a central bank digital currency (CBDC), while the other addresses economic liberalization and consumer protection.

The NBE’s proposed legislation includes the establishment of a regulatory sandbox for innovative financial solutions, such as CBDCs, and addresses various banking matters. Notably, the NBE intends to allow foreign investment in the banking sector. Additionally, several immediate corrective measures will be implemented for “problem” banks, which will involve the NBE’s role in addressing the liabilities of failed banks and modifications to the boards of directors of commercial banks.

The bills have received approval from Ethiopia’s Council of Ministers and will soon be presented to the House of Representatives, where members will have the opportunity to provide feedback and finalize ratification. These bills are part of the government’s Homegrown Economic Reform Agenda.

Cryptocurrency adoption is increasing in various African nations. The Central African Republic has recognized Bitcoin as an official payment method and introduced the state cryptocurrency Sango. Nigeria is actively advancing its CBDC (eNaira) pilot project initiated in 2021, and the country has permitted the use of digital currencies for investment purposes. In Zimbabwe, authorities utilize ZiG, a gold-backed digital currency that has a physical counterpart in the form of banknotes, as an official payment method.

Сообщение Ethiopia Creates Legal Framework for CBDCs появились сначала на CoinsPaid Media.