EXPERTS UGANDA Bank of Uganda Commences CBDC Study 2 years ago Adeleye Awakan Post Views: 481 The Bank of Uganda (BOU) has commenced a study that explores the feasibility of issuing a digital currency. However, an executive with the institution warned that the central bank needed to be clear why it must have this in the first place. Faster Movement of Money The Ugandan central bank has commenced studying the feasibility of issuing a CBDC used by households and businesses. In addition, the BOU is reportedly planning to revise the country’s financial laws. The move enables the BOU to adopt the CBDC formally. This central bank’s decision, according to a report, is supported by proponents of CBDCs. They insist that such a digital currency would enable Ugandans to move money cheaply and much faster. Nevertheless, the bank’s executive director for operations, Charles Abuka, cautioned during a recent interview that the BOU needs to be clear about why it wants to launch the CBDC in the first place. He said: “The first is to establish the rationale properly, why we must have it, and what issues it will help us resolve”. Abuka also argued that the issuance of CBDC is likely to have “technology implications.” He said the technology architecture of such a digital currency would come at a cost, and the central bank needs to understand the implications of these costs. He also highlighted that digital currencies might be susceptible to cyber-attacks. CBDC Enables the Central Bank to Trace Transactions Despite the BOU’s concerns, one of Uganda’s digital currency proponents and a blockchain consultant, Noah Baalessanv, insists that a CBDC will allow the central bank to get a sense of the “actual economy.” Baalessanv added that unlike a cash economy — which is also expensive to maintain and opaque a CBDC leaves the central bank in a position where it can trace transactions. However, the blockchain consultant warned that any issuance of a CBDC is likely to result in financial institutions being removed from the banking equation. According to Baalessanv, while issuing digital currency directly to users is more efficient, this can also be the “most dangerous” attribute of a CBDC. About Post Author Adeleye Awakan Author E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa. See author's posts Adeleye AwakanAuthor E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa. Facebook Twitter LinkedIn Email Print Tags: Bank of Uganda, CBDC, Uganda Continue Reading Previous Google will Charge Nigerian’s 7.5% VAT from April 2022Next Global Bookmaker 1xBet Pledges €1m to Ukrainian Humanitarian Relief More Stories EXPERTS GHANA Can you bet on football with crypto? What you should know 4 hours ago Szarlot CASINO UGANDA NSoft Unveils Revolutionary Crash Cash Game in Admiral Bet Uganda Retail Shops 1 day ago Samuel EXPERTS SOUTH AFRICA The BiG Africa Summit 2024: Day Two Recap 2 days ago Iwo Bulski EXPERTS NIGERIA Bandits funding terrorism through crowdfunding, betting platforms 2 days ago Samuel EXPERTS KENYA Tappi expands services across Africa beyond Kenya and Nigeria 3 days ago Samuel ONLINE UGANDA How to Easily Find Your Favorite Game at Buffalo Slots 4 days ago Tools EXPERTS NIGERIA How NLRC Plans to Regulate Gaming 1 week ago Szarlot EXPERTS UGANDA Top 5 highest-paying jobs in Africa in 2024 1 week ago Szarlot EXPERTS KENYA The impact of Kenya’s Gambling Control Bill 1 week ago Samuel EXPERTS SOUTH AFRICA Celebrate Women in Gaming: Join Us at BiG Africa Summit 2024! 1 week ago Iwo Bulski EXPERTS UGANDA Uganda’s government cashes out from gambling boom 1 week ago Iwo Bulski ONLINE UGANDA Elevate Your Gaming Experience with the Buffalo Slots Mobile App 1 week ago Tools Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.