Abstract

This note explores the implementation and regulation of retail Central Bank Digital Currencies (“CBDCs”) in Africa, focusing on their integration with the continent’s dominant telecommunication-driven financial systems. Unlike advanced economies with relatively robust banking infrastructure, African economies rely heavily on mobile money platforms to effectuate financial inclusion. Drawing on case studies such as Nigeria’s eNaira and China’s e-CNY, this note examines the current and potential regulatory, technological, and infrastructural challenges unique to retail CBDC implementation in Africa. It demonstrates the need for a centralized CBDC model that leverages existing mobile payment ecosystems while ensuring sufficient oversight by the central bank. This note concludes with recommendations for regulatory frameworks, public-private partnerships, and regional cooperation necessary for successfully deploying such a CBDC model on the African continent.

Keywords: Central Bank Digital Currencies, Africa, financial systems, telecommunication, banking, infrastructure, economies