The National Bank of Ethiopia to Explore the Potential of Central Bank Digital Currency

The National Bank of Ethiopia (NBE) has taken another step into the world of digital finance by announcing its exploration of Central Bank Digital Currency (CBDC).

The bank, in collaboration with Giesecke+Devrient (G&D), a German company that provides banknotes, securities printing, and smart cards, hosted a workshop on efficient currency management operations for the banking community yesterday, November 8, 2023.

“NBE will pursue a strategy of enhancing electronic payment system, modernizing current currency management system and exploring the potential of CBDC,” wrote the regulator on X, formerly Twitter.

CBDC is a form of digital currency issued by a country’s central bank. They are similar to cryptocurrencies, except that their value is fixed by the central bank and equivalent to the country’s fiat currency. Many countries are developing CBDCs, and some have even implemented them, with different levels of success.

Researchers state that CBDC …

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