The Reserve Bank of Malawi (RBM) has outlined plans to develop a central bank digital currency (CBDC) following increasing interest to invest in virtual assets, including crypto currencies.
The CBDC is a digital form of sovereign currency that is issued and backed by a central bank.
In its National Payment System Strategy that runs up to 2030, RBM said the digital currency has attracted global interest as a potential instrument to enhance financial inclusion and improve the efficiency of domestic and cross-border payments.
The strategy, launched in Lilongwe last week, has outlined a timeframe to allow effective research and structured consultations with financial institutions between 2026 and 2027.
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It also outlines plans to develop and publish a CBDC Proof of Concept by 2030, setting out the central bank’s assessment and proposed next steps.
Reads part of the report: “The RBM is committed to conducting a thorough, evidence-based assessment of the potential benefits, risks and design considerations associated with a Malawi CBDC.
Among others, RBM also plans to commission in-depth research on global CBDC developments, models and design considerations, focusing on the experience of African central banks and comparable developing economies.
In separate interviews, information and communications technology (ICT) and financial technology (Fintech) experts have described the move as positive, observing that Malawi’s economic modernisation is aligned with CBDCs as they reduce the cost of printing money, among others.
ICT expert Bram Fudzulani said CBDCs offer beyond operational savings as they act as a catalyst for financial inclusion, providing a secure and cost-effective platform that encourages the Malawian business community to transition toward a fully digital economy in line with RBM’s vision.
He said: “Successful implementation will require a strategy centred on stakeholder engagement and aggressive civic education to mirror the lessons learned from previous digital payment rollouts.
“By focusing on changing mindsets and proactively addressing concerns regarding cybercrime and security, we can ensure a nationwide adoption that is both inclusive and resilient against digital threats.”
Fintech expert Arthur Muyepa said CBDCs are not critical for survival as well as staying relevant, noting that virtual currency can complement mobile money improving interoperability and trust.
“CBDCs are not a silver bullet for Malawi’s financial system, but if designed around real use cases such as inclusion, remittances and government payments, they could become a powerful layer on top of our existing mobile money ecosystem,” he said.
RBM Deputy Governor for operations Kisu Simwaka said the strategy is designed to lower digital transaction costs and address persistent network challenges, which have been among the most frequent consumer complaints.
He said the high digital transaction costs run counter to the Malawi Government’s financial inclusion drive and a disincentive to digital transformation agenda.
Among others, the strategy seeks to increase financial inclusion levels from the current 88 percent to 95 percent by 2030.
