Ethiopia launches CBDC legal framework construction

National Bank of Ethiopia (NBE) has prepared two announcements as part of its economic reform plan, one of which involves establishing a legal framework for central bank digital currency (CBDC). These announcements have been approved by the ministerial meeting and will soon be submitted to the House of Representatives. The reforms include creating a legal framework for CBDC when necessary, increasing NBE capital, and providing a legal basis for consumer protection. NBE also plans to join the cross-border payment system and has taken measures to end the national monopoly on mobile money services.

Although digital currency is still illegal in Ethiopia, several data mining companies have been granted permission to mine cryptocurrency using cheap electricity. Other African countries have different experiences with cryptocurrency, with at least 18 countries researching CBDC. Nigeria's eNaira has had mixed results, while Zimbabwe has adopted a token based on gold.