Bank of Mauritius wants to launch a CBDC pilot project
“The CBDCs will be there to fill in and fill in the gaps that the traditional monetary system is not able to fill,” said the Governor of the Bank of Mauritius. Harvesh Seegolam, speaking at CoinDesk Consensus 2021.
Globally, central banks are exploring the possibility of digitizing their fiat currencies. However, there are still compliance, security and privacy issues.
The panel included the director of the OECD Greg Medcraft and Loretta Joseph, FinTech Advisor to the Mauritius Financial Services Commission, by CoinDesk.
“I think in most countries it will be optional for a person to choose to actually use a CBDC,” Medcraft predicted, adding that “stablecoins and state-issued CBDCs” can potentially work side by side.
Seegolam noted that Mauritius has had discussions with the International Monetary Fund (IMF) on how to design a CBDC. He also told CoinDesk that a major concern for central banks when considering issuing digital fiat is financial inclusion.
Norway is considering a central bank digital currency, and Bank Norges Governor Oystein Olsen has said exploring the new currency and its pros and cons is a priority in the region. Meanwhile, tThe National Bank of the Republic of Kazakhstan has announced plans to call its new digital coin the “digital tenge”.
Investors and central banks are now paying close attention to the volatile crypto market. It is said that small nations venture into CBDC before the heavyweights intervene. The Eastern Caribbean Central Bank (ECCB) launched DCash – a “secure digital version” of the East Caribbean dollar – and the Central Bank of the Bahamas introduced the sand dollar.