The Bank of Namibia is continuing its work on a digital Namibian dollar despite skepticism from the International Monetary Fund (IMF). The central bank digital currency (CBDC) aims to improve access to banking services for the population and improve cross-border payments. The Bank of Namibia is studying how locals and institutions will perceive the CBDC, as well as analyzing potential risks and user expectations.

The IMF, despite its involvement in the project, has recommended that the Bank of Namibia focus on other instant payment solutions (IPS), believing that a CBDC will not bring significant benefits. However, the Bank of Namibia sees the digital currency as an opportunity to improve financial services for the population, despite challenges such as integration with existing payment systems.

According to the IMF report, six central banks in sub-Saharan Africa plan to launch their CBDCs by 2028. The Bank of Namibia is seeking to address macro-financial risks related to liquidity and foreign exchange reserves, and is continuing to work on the digital dollar despite the IMF’s recommendations.