Central Bank Digital Currency and Other Digital Payments in Sub-Saharan Africa: A Regional Survey (IMF Fintech)

Summary

• Thirty of the 33 central banks in sub-Saharan Africa responded to the regional survey on digital currencies and payments.p.6
• More than 75 percent of surveyed central banks are actively engaged in or planning CBDC research or pilot programs.p.6
• Over 80 percent of surveyed central banks have not observed a decline in central bank-issued cash in circulation.p.10
• Eighty percent of central bank respondents envisage facilitating cross-border remittances by joining a multi-currency CBDC system.p.15
• Nearly 90 percent of surveyed central banks plan to partner with private sector entities to implement CBDCs.p.11

Key insights

1. Financial inclusion and domestic payment efficiency represent the primary motivations for CBDC exploration in sub-Saharan Africa.p.10
2. Most central banks prefer a hybrid operation model where the central bank issues CBDC and intermediaries manage end-user interactions.p.10
3. Fast payment systems and mobile money are viewed as immediate quick wins, whereas CBDCs remain largely in exploratory stages.p.7
4. Human capital limits and technological infrastructure deficits are identified as the most prominent challenges to CBDC adoption.p.17
5. Crypto asset usage in the region is predominantly driven by speculative trading and cross-border payment needs rather than daily commerce.p.26
6. Domestic interoperability between fragmented private mobile money providers remains an operational challenge for many central banks.p.22