News

Ethiopia Initiates Economic Reform with its First Step Toward a CBDC

single-image

The nation intends to establish a regulatory sandbox and legislative framework “as necessary” for the implementation of CBDC.

Stay in the know on crypto by frequently visiting Crypto News Today

As part of an economic reform plan, the National Bank of Ethiopia (NBE) has prepared two proclamations. Creating a legislative framework for the introduction of a central bank digital currency (CBDC) is one of them.

CryptoCaster Quick Check:

The NBE Proclamation calls for a number of policy changes, including raising the NBE’s capital and establishing a foundation for consumer protection in addition to establishing a legal framework for a CBDC “as necessary.” The Banking Business Proclamation that goes along with it talks about opening up banking to international investment, taking action against “problem” banks, and setting up a regulatory sandbox to support creative financial solutions.

Advertisement

The proclamations have been accepted by the Council of Ministers and will shortly be presented to the House of Representatives.

The central bank is planning extensive changes

The government’s Homegrown Economic Reform Agenda includes the proclamations. The government’s interest in a CBDC was reported in April by the privately owned Ethiopian publication The Reporter. It stated that a research would begin in June. The NBE also wants to be a part of “the Cross Border Payment System” by December, it continued. It gave no information regarding the system’s specifications.

Advertisement

Ethiopia has already started the process of liberalizing its economy, removing the government’s monopoly on mobile money services, among other things. Large government payments are already made in the nation using blockchain-based digital infrastructure.

Africa’s cryptocurrency experience is mixed.

Despite obstacles like low internet penetration, the usage of cryptocurrencies is increasing in a number of African nations. Not every attempt to introduce cryptocurrency has been effective. Notably, the Central African Republic started using Bitcoin as money and, with only modest success, introduced the Sango, a non-CBDC official cryptocurrency. As of this writing, the Sango currency website is not operational.

Although the licensing of “dozens” of data mining companies has attempted to take advantage of Ethiopia’s inexpensive electricity to mine cryptocurrency, digital currencies are still prohibited in the nation. Additionally, there were plans to implement the Web3 Fuse payment mechanism.

At least eighteen African nations are investigating CBDCs. With the eNaira, which debuted in 2022 as the second live CBDC globally, Nigeria has experienced mixed results.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


We hope you found this article insightful. Before you go, please consider supporting CryptoCaster’s independent journalism.

In the world of media owned by billionaires like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase), influence over narratives surrounding cryptocurrency and Web3 often reflects their interests. CryptoCaster is different. With no billionaire backers or shareholder obligations, we are committed solely to public interest journalism, covering crypto advancements and institutional changes without profit-driven motives.

Unlike much of mainstream media, which can fall into neutrality traps that obscure the real impacts on retail investors, we’re guided by transparency and integrity. We are unafraid to take a stand in the ongoing struggle against fiat banking dominance and in support of the monetary innovation driven by crypto and Web3. Reporting on issues like FTX, Binance, and Ripple, we bring a bold, unfiltered outsider’s view on global financial disruption—free from the constraints of traditional media narratives.

CryptoCaster remains paywall-free, accessible to everyone, thanks to the support of readers like you. Your contributions keep us independent and help ensure that critical information on the crypto landscape reaches all. If you value our work, please consider supporting us with a one-time contribution starting at just $1 in Bitcoin or Ether, or even monthly if you’re able. Scroll down to find our wallet addresses and help keep CryptoCaster independent and thriving.

Thank you for your support,

Kristin Steinbeck
Editor, CryptoCaster


Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
SOL – DLvdMu85dW6pZMhw2E4S3pp81qQQGpy5UcdTsFEFBu4b
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like