BoN’s CBDC plans get WEF boost

Bank of Namibia (BoN) Governor, Johannes !Gawaxab says his participation at the 2022 World Economic Forum (WEF) has provided some insights into the central bank’s plans to establish a Central Bank Digital Currency (CBDC).

“My attendance has crystallised my own thinking about Central Bank Digital Currencies (CBDCs) and the direction Central Banks are taking, it also provided an in-depth analysis on global inflation and its outlook as well as global economic outlook,” he said.

!Gawaxab, who formed part of a high-powered delegation led by President Hage Geingob to the annual global event, whose participation ended on Thursday said, “these insights will be crucial for our internal discussions and decision making.”

The announcement by the BoN Governor comes as the apex bank in November last year announced its CBDC plans, a development which has seen a Digital Transformation and Innovation Committee put in place, which among other roles, will be to spearhead and facilitate initiatives in the Bank, with a long-term view to facilitate the same ambitions in the Financial Sector at large.

The central bank has also established a technical committee to develop a prudential licensing and regulatory framework for Virtual Assets (Vas) and Virtual Asset Service Providers (VASPs) in partnership with the Namibia Financial Institutions Supervisory Authority (NAMFISA).

With regards to investments, he added that engagements at the event were pivotal to attract much needed foreign direct investments, while mobilizing partnerships and collaboration in Namibia's green hydrogen prospects, agriculture and other key sectors of the economy, developments which it supports.

“The central bank continues to support the government to leverage its potential in these new industries and propel economic growth and development in the near and medium term,” he said on Thursday.

"We have much more going for us than against us, as we exit an economic recession which wiped many socioeconomic gains. As I have said before - our stars are aligning and the world is taking notice. Our resolve to attract investments and advocate for our recovery will soon bear fruits. I am indeed proud that as a central bank, we support policy makers on this journey to find practical solutions to our challenges.”

Namibia’s inaugural participation at the global event centered on investment prospects, with a focus on Green Hydrogen, Renewable Energy, Tourism, Infrastructure, Agriculture and Logistics.


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Last modified on Thursday, 26 May 2022 15:27

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