Group items tagged

"In 2019, the Central Bank of Eswatini in collaboration with Cenfri conducted the first phase of a four-phase diagnostic study to investigate possible use cases for the implementation of central bank digital currency in Eswatini. The study sought to understand the value that a CBDC would contribute to the Eswatini financial system and whether further exploration of CBDC and potentially conducting pilot-testing would be justified."

The Central Bank of Eswatini (CBE) has partnered with Giesecke+Devrient (G+D) to research and explore the development of a central bank digital currency (CBDC). G+D's appointment stems from the completion of the 1st phase of the CBDC Diagnostic Study conducted in 2020 which found that a retail CBDC presented the strongest and direct opportunity for the adoption of a digital currency in Eswatini.

"In 2019, the Central Bank of Eswatini (CBE) became one of the first Central Banks in sub-Saharan Africa to consider the potential and feasibility of CBDC through the application of a country diagnostic. Together with Cenfri, the CBE embarked on the first part of a three-part diagnostic. This study aimed to investigate and understand whether use cases existed for the implementation of a CBDC in the region, either as a retail or wholesale variety. Our primary research questions were: 1) what value would this instrument contribute to the Eswatini financial system? And 2) is there sufficient evidence to justify further exploration into its potential pilot-testing?"

The World Bank published a Digital Economy Diagnostic for Eswatini that provides an assessment of the five pillars of Eswatini's digital economy comprising digital infrastructure, digital platforms, digital financial services, digital skills, and digital entrepreneurship. Overall, it concludes that the potential of the digital economy in Eswatini has not yet been fully realized. A coordinated and holistic approach will be needed to build an inclusive digital economy, as each of the foundations play an important role in their own right, but also depend upon and reinforce the others.

The Central Bank of Eswatini (CBE) has published a consultative paper that sets out the design characteristics of a potential retail digital lilangeni. The Bank has partnered with Giesecke+Devrient (G+D) to advance its research and exploration of CBDCs and is now entering the experimentation phase of its CBDC project. It will be based on a two-tiered operating model, where the CBE operates the core infrastructure and intermediaries are in charge of distributing CBDC to end users, once obtained from the CBE, and handle all customer-facing activities. It will be unremunerated, transactions will be free of charge to consumers, and it will enable true and full interoperability with the existing payment methods and wholesale and retail infrastructures. Offline functionality will ensure continued usage even in the absence of an internet connection, during power outages, or simply in certain rural areas. Some payments with - and wallets that store - digital lilangeni will be equipped with programmability features for value-added and innovative use case scenarios.