The governor of the Central Bank, Buah Saidy, on Monday addressed the ‘Africa Finance Summit’ which ended in Casablanca, Morocco yesterday.
The two-day summit was held on the theme: maximising the potential for cross-border payments and financial inclusion.
The organisers said the theme is relevant as the continent’s policymakers and leaders work hard to ease transactions among and between countries.
In his speech, Governor Saidy informed participants that Central Bank Digital Currencies (CBDCs) offer a range of potential benefits, which can help enhance the efficiency, security, and accessibility of financial systems.
He said the IMF survey on CBDC and digital payments has revealed that many countries in the region are in early stages of CBDC exploration, with motivations driven by enhancing financial inclusion, reducing transaction costs, and improving payment efficiency. “The survey recognises the growing adoption of fast payment systems, but pointed to challenges like infrastructure gaps, cyber security risks, and regulatory capacity. This emphasises the need for careful design choices in CBDCs to address interoperability and privacy concerns. The CBG governor cited the many ways CBDCs can maximise the benefits of various areas, including access to digital financial services, lower transaction costs and faster cross-border payments among others.”
He said by addressing the limitations of traditional financial systems, CBDCs can play a crucial role in improving cross-border payment processes and enhancing financial inclusion.
The Gambia’s experience
Governor Saidy then informed the meeting on the situation In The Gambia.
“We are actively working to modernise our payment systems. Through initiatives like the upgrade of our national switch and our integration with the Pan-African Payment and Settlement System (PAPSS) we are enhancing payment interoperability and efficiency. These efforts are complemented by the extension of secure electronic payment platforms to key government agencies and ongoing collaborations with fintechs to improve service delivery. However, for CBDC, we are still at a learning stage to be followed with preparatory phase which would include developing legal framework that supports CBDC and the communication strategy. Currently, The Gambia is serving in sub-Saharan Africa Central Banks Network on CBDC and other digital payment systems set up by the IMF. The network meets periodically to share ideas and practical experiences on best practices,” he concluded.
