Uganda’s central banker the Bank of Uganda, has started public consultations on the viability of issuing its own Central Bank Digital Currency (CBDC) as legal tender. In an invitation to the public to share their views on the proposal, by filling a 54 question online questionnaire, the BoU says owing to rapid advancements in technology and changing consumer preferences, “central banks around the world are increasingly considering the potential benefits and implications of Central Bank Digital Currencies (CBDC) adoption as legal tender.”

The central banker is however, quick to caution that while it has issued a consultation paper on CBDCs, it is yet to adopt a definitive position on the issuance of a CBDC but is instead planning “to engage with relevant stakeholders on the benefits, opportunities and risks associated with such a move.”

“The consultation paper and this survey are part of the stakeholder engagement process. The survey seeks to gather views and opinions regarding the possibility of introducing a CBDC by the Bank of Uganda. The responses to the questions will assist in assessing the readiness, implications, and potential benefits of issuing a CBDC, as well as address any challenges or considerations that may arise,” it further explains.

No timeline has been given but officials say the proposed CBDC’s value will be at par with bank notes and coins and maintain the same functionality as a store of value and mode of payment