A Zimbabwean tertiary learning institution, the Harare Institute of Technology (HIT) is reportedly developing a central bank digital currency (CBDC). Quinton Kanhukamwe, vice chancellor of the institution, made this announcement at the institution’s 13th graduation ceremony.
Kanhukamwe claims that the proposed CBDC will aid in the eradication of vices such as currency manipulation, cash hoarding, and unlawful foreign exchange trades.
As per his remarks at the graduation, with Zimbabwean President Emmerson Mnangagwa in attendance, Kanhukamwe revealed how the blockchain-anchored CBDC can potentially bring the unbanked into the formal banking system.
He said:
“Many times, the unbanked population believes that the traditional financial sector is only there to rip off all their earnings. The CBDC has the capacity to significantly reduce the regulatory costs for central banks thus reducing the transactional costs that will ultimately reduce the costs of service. As a result, there is a significant reduction in fees.”
The vice chancellor further stated that once formal banking services are available to the unbanked population, this can potentially set off a chain reaction that will result in increased business for small-to-medium enterprises.
Additionally, using the CBDC will help the central bank reduce the cost of printing money, according to Kanhukamwe.
The Reserve Bank of Zimbabwe (RBZ) claimed it had created a roadmap for the CBDC in its most recent monetary policy statement. The central bank said it would unveil a public consultation paper which it said would foster a broad and transparent public dialogue regarding the potential benefits and risks of CBDC.
Similar to its previous updates about the CBDC, the RBZ’s latest statement doesn’t state the date when the central bank is hoping to roll out the CBDC.
The statement also didn’t state if the RBZ is working with another entity towards this objective.