Contemplates launch of central bank digital currency for international transactions by the Bank of Namibia
Central Bank Digital Currencies (CBDCs) are the talk of the financial world, and Namibia is no exception. In a recent update, the Bank of Namibia (BoN) has been actively exploring the potential of a CBDC, with updates noted as recently as July 2025 [3].
However, the International Monetary Fund (IMF) has advised Namibia to tread carefully. The IMF does not believe that a retail CBDC offers a unique solution to Namibia's financial inclusion problems [1]. Instead, the IMF encourages Namibia to research the potential impact of a digital currency on its monetary policy and financial stability [4].
The IMF's advice was given in its February feasibility study report [5]. The BoN is considering this recommendation, aiming to finetune its approach towards the CBDC launch. The IMF's ongoing consultative and technical process for Namibia’s CBDC strategy is evident from the presence of updated data on Namibia’s CBDC in international tracking platforms like cbdctracker.org [3].
Meanwhile, Namibia is part of regional discussions with countries including Eswatini, Lesotho, and South Africa. The focus is on interlinking real-time domestic payment systems as a near-term solution to improve cross-border settlement speed, reduce costs, and increase accessibility [2]. This aligns with broader regional initiatives to harmonize domestic fast payment systems, a model considered pragmatic for southern Africa’s economic corridor.
Elsewhere on the continent, Nigeria was the first to launch a CBDC - the eNaira - in 2021. However, it has had little success [6]. Ghana, on the other hand, plans to launch its CBDC - the eCedi - before the end of the year, after holding off on the launch for two years despite successful pilots [7].
As Namibia navigates the complexities of CBDC adoption, it finds itself strategically positioned in the southern African fintech landscape. The challenges are numerous, but with the guidance of the IMF and regional cooperation, Namibia is poised to make significant strides in modernizing its monetary system and enhancing financial inclusion.
- Given the global interest in Central Bank Digital Currencies (CBDCs), Nigeria, a neighboring African country, launched the eNaira in 2021, but the success has been limited.
- Further in Africa, Ghana is planning to launch its CBDC, the eCedi, before the end of this year, after delaying the launch for two years following successful pilots.
- In its strategic position within the southern African fintech landscape, Namibia, with guidance from the IMF and regional cooperation, is positioned to make significant strides in modernizing its monetary system and enhancing financial inclusion.
- The IMF, in its February feasibility study report, encourages Namibia to research the potential impact of a digital currency on its monetary policy and financial stability, rather than relying on a retail CBDC as a unique solution for financial inclusion.
