Africa-Central banks push for digital ID and CBDC

Central banks seek ‘universal access’ to CBDC via digital ID: BIS Africa report

 Central banks have abandoned complete anonymity in favor of digital ID for their programmable CBDCs: perspective

Tim Hinchliffe

Central banks are looking to digital ID schemes as a means to achieve universal access to CBDC, according to a new report on Central Bank Digital Currencies (CBDCs) in Africa from the Bank for International Settlement (BIS).

“Universal access to eNaira is a key goal of the CBN, and new forms of digital identification are being issued to the unbanked to help with access” — Central Bank Digital Currencies in Africa, BIS, November 2022

Digital ID is a mechanism by which the Central Bank of Nigeria (CBN) wants to achieve universal access to its CBDC — the eNaira — which is being carried out in the name of financial inclusion and helping the unbanked.

According to the BIS November 2022 report on Central Bank Digital Currencies in Africa, “Universal access to eNaira is a key goal of the CBN, and new forms of digital identification are being issued to the unbanked to help with access.”

The report goes on to say that “An eKYC-enabled CBDC that is integrated with the national ID schemes could greatly ease financial onboarding.”

“An eKYC-enabled CBDC that is integrated with the national ID schemes could greatly ease financial onboarding” — Central Bank Digital Currencies in Africa, BIS, November 2022

“The most promising way of providing central bank money in the digital age is an account-based CBDC built on digital ID with official sector involvement” — Bank for International Settlements, Annual Economic Report, 2021

Central banks around the world have abandoned the idea of complete anonymity, favoring instead digital identity schemes as unique identifiers for onboarding people to their programmable CBDCs.

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By Tim Hinchliffe

Tim Hinchliffe is the editor of The Sociable. His passions include writing about how technology impacts society and the parallels between Artificial Intelligence and Mythology. Previously, he was a reporter for the Ghanaian Chronicle in West Africa and an editor at Colombia Reports in South America. [email protected]

(Source: sociable.co; December 1, 2022; https://tinyurl.com/2n6o7ksq)
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