Namibia: Retail Central Bank Digital Currency Exploration and Roadmap

At the request of the Bank of Namibia (BoN), an IMF mission team conducted a technical assistance (TA) from January 15 to February 1, 2024. The mission assisted the authorities in establishing the groundwork for a feasibility study of a retail central bank digital currency (rCBDC) and drafting a roadmap for the BoN's CBDC exploration. The mission also reviewed requirements for rCBDC issuance, including institutional capacity, technology, cybersecurity, and legal foundations. The mission recommended the BoN assess how rCBDC can improve the payment systems and financial inclusion in Namibia compared to alternative solutions. The authorities are advised to establish a compelling rationale for rCBDC before embarking on a more resource-intensive undertaking. The mission suggested that the BoN continue developing expertise and capacity in rCBDC across policy, technology, and legal domains, including through continued engagement with stakeholders.