A Survey of Central Bank Digital Currency Adoption in African Countries

Abstract

The paper presents a survey of central bank digital currency (CBDC) adoption in African countries. Secondary data based on desk research were used to conduct the survey. Data for each African country were collected from publicly available information about each country's interest and efforts in issuing a central bank digital currency. The survey shows that 70 per cent of African countries have not shown any interest in central bank digital currency. The West African region has the highest number of countries that have not shown any interest in central bank digital currency. Only 4 African countries have a robust payment system infrastructure that can support central bank digital currency. Only 14 African countries have officially indicated interest in central bank digital currency. Only 13 African countries have announced that they are studying central bank digital currency to determine whether they will pursue central bank digital currency as a short-term or long-term goal. Only 4 African countries have reached the pilot test stage of issuing a central bank digital currency. Finally, only one African country has formally issued a central bank digital currency. The policy implication of the findings is that there is low interest in central bank digital currency in the African continent. The low interest in central bank digital currency in African is attributed to the strong preference for cash payments, lack of a robust payment system, low use of digital payments, central banks' focus on other priorities, fear of failure, lack of government interest in digital currency and concerns about CBDC privacy risk and security threats. These factors can slowdown the level of development and economic inclusion in African countries. There is need to accelerate the issuance of CBDC in African countries.