Mauritius planning to launch pilot project for retail digital rupee late this year
Mauritius plans to launch the pilot phase of a digital rupee in November, Bank of Mauritius Governor Harvesh Kumar Seegolam announced. Many of the parameters of the prospective central bank digital currency (CBDC) are already in place.
Speaking at the International Monetary Fund/World Bank Community of Central Bank Technologists meeting held on the main island, Seegolam said he prioritized CBDC development when he took office in 2020:
Consultations with International Monetary Fund (IMF) experts began the same year and resulted in the production of a feasibility report. According to Seegolam, Mauritius was the first country to benefit from IMF technical assistance with its CBDC project.
Related: IMF offers Jordan’s central bank recommendations for implementing retail CBDC
The Bank of Mauritius set up a sandbox with an unnamed partner in December to explore potential features and “craft the Digital rupee based on the Mauritian specificities.”
The digital rupee should be “a payment instrument to be made available to one and all” that will be intermediated to “ensure that commercial banks continue to be fully-involved in our CBDC journey.” It will also make monetary policy easier to manage and support financial stability, Seegolam said. The digital rupee will be interest free.
Address by Governor @HarveshSeegolam at the IMF/World Bank Community of Central Bank Technologists workshop on the theme of “The Future of Central Bank Money in a Digital World” on https://t.co/CamOr3jCh1 #centralbank #banking #fintech #DigitalCurrency #cbdc #imf #worldbank
Seegolam said the Bank of Mauritius “is contemplating” launching a digital rupee pilot phase in November. Phase two of the project will be the development of its use in cross-border
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