Ethiopia's Ministerial Council Approves CBDC Launch Draft

According to Foresight News, the Ministerial Council of Ethiopia has approved a draft announcement for the launch of a Central Bank Digital Currency (CBDC). The announcement establishes a legal framework for the introduction of digital currency, allowing it to circulate alongside legal tender. The National Bank of Ethiopia (NBE) has stated that the draft takes into account rapid technological advancements and draws on the experiences of other central banks. In addition to the 'Central Bank Development Committee Announcement', the Ministerial Council has also voted to open the local banking industry to foreign competitors. This move is seen as a significant step towards modernizing Ethiopia's financial sector and embracing the digital economy. The introduction of a CBDC is expected to bring about a new era of financial inclusivity and digital innovation in the country.