Kenya Central Bank Governor: Low Smartphone Penetration Working Against Plan to Launch CBDC

Kenya Central Bank Governor: Low Smartphone Penetration Working Against Plan to Launch CBDC

According to Patrick Njoroge, the governor of the Kenyan central bank, the significant number of non-smartphones that are in use in Kenya means launching a central bank digital currency (CBDC) now may be premature and could lead to many citizens being financially excluded. Central Bank Mulls Delaying CBDC Rollout

The governor of the Central Bank of Kenya (CBK), Patrick Njoroge, has suggested the lack of access to smartphones of more than half of Kenya’s mobile phone users is working against its plan to launch a CBDC. He warned the central bank may be forced to delay its rollout of the CBDC as a result.

According to Njoroge’s remarks published by Business Daily, proceeding with the rollout of the digital currency will likely see Kenyans without a smartphone being locked out. This blockade of non-smartphone users, in turn, works against the central bank’s goal of further narrowing the proportion of the population that is financially excluded.

Njoroge explained: The CBDC will have a minimum viable technology requirement, which may be a sort of fourth-generation (4G) environment. There is an argument to be made that such a development could lead to greater financial exclusion such that some people may fall out of the financial system just because we have adopted a CBDC… This is something we need to be careful about.

The governor suggested the CBK may have to wait until Kenya has more smartphone users. As noted in the Business Daily report, out of the 59 million mobile devices being used by Kenyans, about 56% or 33 million of these are non-smartphones or feature phones. Feature phones are not internet-enabled, which means owners of these devices are precluded from using a CBDC.

CBDC Safer Than Crypto

Despite pointing out the challenge that may result from the CBDC launch, Njoroge — who has previously expressed his opposition to cryptocurrencies — is still quoted in the report asserting that a CBDC would be “safer and more trustworthy” than privately issued digital currencies.

Meanwhile, Njoroge’s latest remarks concerning the central bank’s plan to launch a digital currency come a few weeks after the CBK released a document discussing the benefits and risks of a CBDC. Also, as reported by Bitcoin.com News, the central bank has asked members of the public to share their views about the CBDC. Tags in this story CBDC, central bank of Kenya, Cryptocurrency, Digital Currency, financial inclusion, Kenya financial system, Patrick Njoroge

What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Dubai Café Accepts Cryptocurrency as Payment, Owner Hints at Paying Employee Salaries in Crypto EMERGING MARKETS | 2 days ago Ghana CBDC Development: New Central Bank Document Outlines Key Motivations for Issuing the Digital Currency EMERGING MARKETS | 5 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons, Mary MM Previous articleARTIC Brings the Decentralized Approach to Art Galleries and Exhibitions via Its Meta-Exhibitions Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItUS Senators Working on Broad-Based Crypto Regulation

Two U.S. senators are working on a bipartisan, broad-based regulatory framework for cryptocurrency. "The work we’re doing is going to be a very complex and intensive review of the different aspects of this industry," said one of the senators. US ... read more.Elon Musk Giving "Serious Thought" to Creating Social Media Platform With Free Speech as Top Priority NFT Sales Slid Lower This Week, Cronos NFT Volume Jumps 236% Higher, Azuki Collection Rises  European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision Spanish Retailer El Corte Ingles Launches Crypto Exchange in Partnership With Deloitte