A new technical note from global financial institutions shows that authorities in Europe, Asia and North America are rapidly testing digital versions of central bank money to keep pace with innovation in settlement systems and cross-border payments. The document points to a growing consensus that traditional payment infrastructure must adapt to remain secure, efficient and competitive.
According to the findings, institutions including the Bank of England, Bank of Japan, European Central Bank, Swiss National Bank and the Bank of Canada have stepped up work on wholesale central bank digital currency (CBDC) designs. These trials focus on improving the way banks settle large-value transactions, using technologies such as distributed ledger systems and smart contracts to speed up transfers and reduce operational risks.
In June 2024, the Bank of Ghana announced the successful completion of a pilot that used digital credentials to support cross-border trade, one of the clearest examples of an African central bank exploring how digital tools could support regional commerce. Ghana’s experiment is viewed as a potential model for neighbouring economies seeking to reduce transaction delays and costs in intra-African trade.
The note also highlights new projects by the Bank for International Settlements exploring tokenised assets, automated monetary policy tools and enhanced access to settlement systems. These initiatives show how global regulators are preparing for a financial ecosystem in which digital currencies interact with traditional money, commercial bank platforms and emerging fintech systems.
For African countries, where mobile money already plays an outsized role in daily commerce, wholesale CBDCs could offer opportunities to strengthen financial stability and support smoother cross-border transfers within the continent. Experts warn, however, that robust regulation, regional coordination and technological readiness will be essential to ensure that digital versions of central bank money deepen financial inclusion rather than widening existing gaps.
As advanced economies fast-track their experiments, African monetary authorities are expected to play a crucial role in shaping a future digital payments landscape that reflects the continent’s needs and realities.
–IMF/ChannelAfrica–
