The International Monetary Fund has disclosed that central bank digital currencies could drop the cost of sending and receiving the money to Nigeria and other Sub-Saharan African countries.
The Washington-based lender stated that Sub-Saharan Africa is the most expensive region to send and receive money, with the average cost pegged at a little under eight per cent of the transfer amount. It added that CBDCs could cheapen the process by shortening payment chains and creating competition among service providers.
In its ‘More African Central Banks Are Exploring Digital Currencies,’ report published on its blog, the IMF said, “They can also facilitate cross-border transfers and payments.
“Sub-Saharan Africa is the most expensive region to send and receive money, with an average cost of just under eight per cent of the transfer amount. CBDCs could make sending remittances easier, faster, and cheaper by shortening payment chains and creating more competition among service…
