Why African Countries Should Consider National Digital Currencies to Counter the Threats Posed by Private Digital Currencies like Facebook Libra
The introduction of CBDCs would, no doubt, raise some legal and regulatory questions. First of all, due to the monetary policy implications of private currencies such as Libra, African countries need to think ahead whether they would want to ban the use of Libra for domestic transactions. Secondly, should African countries introduce their own CBDCs, governments would need to be able to know and manage the identities of parties transacting with these currencies in order to be able to fulfil ‘Anti-money laundering and combating the financing terrorism’ (AML/CFT) requirements. Of course, if these currencies become acceptable globally, they would be required to adhere to, the Financial Action Task Force’s (FATF) - the global watch dog against money laundering and terrorism financing - recommendations on travel rules.