Ethiopia plans to launch a Central Bank Digital Currency (CBDC) as part of its economic liberalization measures, aiming to enhance financial development and sustainability.
The National Bank of Ethiopia (NBE) has developed two crucial proclamations.
One is legal requirements for CBDC issuance and the other is Banking Business Proclamation for foreign investment and innovation.
The first one ensures compliance with international standards and consumer protection, creating a solid foundation for Ethiopia's digital currency.
The second aims to liberalize foreign investment, manage non-compliant banks, and establish a regulatory sandbox for innovative financial products.
Both proclamations have been approved by the Council of Ministers and will be presented to the House of Representatives under Ethiopia's Homegrown Economic Reform Agenda
The country also plans a CBDC study, joining the Cross Border Payment System, and adopting blockchain for government payments.