Mauritian Digital Rupee: Pilot roll-out in November 2023
In his keynote address at the International Monetary Fund/World Bank Community of Central Bank Technologists workshop held at the Bank of Mauritius (BoM) on 26 April 2023, the Governor of the BoM announced that the Digital Currency will soon be a reality in Mauritius. In fact, the BoM is aiming to roll out the Digital Rupee on a pilot phase in November 2023.
In a post-Covid era, it is expected that digital currencies will become more prominent and will integrate the financial architecture of economies around the world. The Governor reminded the audience that Central Bank Digital Currencies (CBDC) may have critical implications on both domestic and international economic and financial stability. This is the reason why the BoM has adhered to a prudent and cautious approach since it embarked on the development of the Digital Rupee in 2020.
The BoM is the first central bank in the world to benefit from technical assistance from the International Monetary Fund (IMF) in the creation of its digital currency. A sandbox was set up in December 2022 to test and experiment with the various features of the Digital Rupee and the findings will be used in its creation. In the same address, the Governor of the BoM clarified that the Digital Rupee will be interest free and that the BoM will adopt a two-tier distribution model to manage potential risks to monetary policy and financial stability of the economy. This two-tier model will also ensure that commercial banks continue to be fully involved in the CBDC journey.
To access the Keynote Speech of the Governor, please click Here