Zimbabwe university develops local digital currency of central bank


It is reported that the Harare Institute of Technology, a higher education institution in Zimbabwe, is developing a central bank digital currency (CBDC). Quinton Kanhukamwe, vice chancellor of the institution, said that the digital currency is expected to help eliminate problems related to currency manipulation and unauthorized currency transactions.

Quinton Kanhukamwe's comments were published by the Herald. The Chancellor at the graduation ceremony, which was also attended by Zimbabwean President Emmerson Mnangagwa, explained how a blockchain-based CBDC could potentially attract people who do not have access to banking services into the official banking system. He said:

"Often people who do not use banking services believe that the traditional financial sector exists only to rob them. CBDC is able to significantly reduce regulatory costs for central banks, thereby reducing transaction costs, which will ultimately reduce the cost of servicing. As a result, there will be a significant reduction in fees."

The vice-chancellor added that as soon as official banking services become available to the population that does not yet have access to them, small and medium-sized businesses will begin to grow more actively. Kanhukamwe noted that the use of CBDC will help the central bank to reduce the cost of printing money.

In its latest statement, the Reserve Bank of Zimbabwe (RBZ) said it has developed a roadmap for CBDC. The central bank noted that it will present a document for public consultations, which, according to it, will promote "a broad and transparent public dialogue on the potential benefits and risks of CBDC."

As in the previous ones, the latest RBZ statement does not specify the date when the central bank hopes to deploy the CBDC. The statement also did not indicate whether RBZ is collaborating with another organization to develop the product. However, according to the Herald, it is HIT that can develop a CBDC for the central bank

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