EMTECH, a central banking infrastructure provider, has released its Web3-enabled central bank digital currency (CBDC) innovation kit for financial institutions. The kit provides the tools to develop and test new CBDC-based products and services.
EMTECH founder and CEO, Carmelle Cadet said:
“We’re extremely proud to officially announce this flagship CBDC offering for fintechs. Our point of view has been consistent: enabling central banks to safely deploy their CBDC as a digital cash infrastructure, not just a software application, can drive inclusion, interoperability and resilience by embracing the growing fintech ecosystems ... Imagine if the $10 trillion or more of paper cash floating in the world was issued digitally, used and accounted securely, in real-time and seamlessly.”
- The kit includes a CBDC simulator built on the Hedera layer-1 protocol and pre-built APIs that simplify the integration of CBDC into fintech products. The kit also provides documentation and tutorials to help financial institutions get started.
- In addition to being a CBDC infrastructure provider, EMTECH is also a digital regulatory platform for financial institutions.
- In August 2022, the company announced that its API-first digital regulatory sandbox platform was selected by the Bank of Ghana (BOG) to modernize its regulatory review process and regulatory reporting capabilities.
- The decision aimed to accelerate the market entry of innovative financial products and improve BOG's risk assessment.
- Following this successful pilot in Ghana, the firm also partnered with the Central Bank of Nigeria to digitize its regulatory sandbox.
- EMTECH told Mariblock that it is looking to expand into four more African countries working on digital asset regulatory frameworks. These countries include Liberia, Sierra Leone, Gambia and Guinea.
- However, the status of active CBDC projects with African central banks remains unknown.
Why this matters
- The development of CBDCs is gaining momentum in Africa. While some central banks are still exploring the possibility of issuing CBDCs, others have already made progress.
- According to a survey, 19 African countries have shown interest in developing CBDCs for various reasons, primarily as a digital alternative to cash.
- While Nigeria remains the only African country with a live CBDC, the eNaira, other countries have also made significant leaps in their development.
- Zimbabwe’s gold-backed CBDC is still in its pilot stage alongside Mauritius, South Africa and Ghana.