Industry consultation on CBDC Diagnostic Study

In 2019, the Central Bank of Eswatini in collaboration with Cenfri conducted the first phase of a four-phase diagnostic study to investigate possible use cases for the implementation of central bank digital currency in Eswatini. The study sought to understand the value that a CBDC would contribute to the Eswatini financial system and whether further exploration of CBDC and potentially conducting pilot-testing would be justified. The study explored three use cases; the Payments use case, Consumer use case and the Economic Policy use case.

The diagnostic study has four planned phases to asses the potential of CBDC in Eswatini. The phases are as follows:

  1. Phase 1: Deepen understanding of potential benefits in Eswatini.
  2. Phase 2: Evaluate key prerequisites and regulatory environment.
  3. Phase 3: Conduct gap analysis and feasibility assessment.
  4. Phase 4: Identify roadmap for potential testing and roll-out of CBDC.

The findings of the first phase of the study indicate that there are at least three potential use cases that motivate further exploration of CBDC to determine whether Eswatini satisfies key prerequisites for launching a CBDC that would benefit the Eswatini economy. The study found that CBDC has potential to: improve national payment system efficiency and functionality; deepen consumer demand and usage of digital financial services; and strengthen economic policy.

While the results of the first phase are positive, further research is needed to investigate the necessary prerequisites  to enable the identified CBDC use cases, and whether these are in place in Eswatini.

The Bank is requesting input from industry experts and stakeholders to further develop the CBDC diagnostic study. It seeks input in terms of the stakeholder’s perspectives on CBDCs, both from the perspectives of financial service providers, government and consumers. The feedback will help the Bank as it moves on to the next phase of the study.

Download full report

The full phase 1 report can be downloaded here.

How to submit response

Please send your comments by email to innovation@centralbank.org.sz . Please include the subject line “Eswatini CBDC diagnostic study industry consultation feedback – company name/your name” in your email.

To ensure a fair and transparent consultation process, only responses received through this email and within the closing date will be taken into account.

Closing Date: 30 June 2020

Link to the downloadable PDF Report