Botswana explores digital currency to boost financial access, improve payment systems, ensure cybersecurity, and align with global CBDC launch efforts.
Botswana has started a new study in July 2025 to explore the idea of creating a central bank digital currency (CBDC). This is an early step in the country’s plan to modernize its financial system. The research will assist the Bank of Botswana to know whether it requires a virtual currency and how using such currency would impact the local currency and economy. The government also aspired to enhance access to financial services, particularly where the banks have been difficult to reach.
Bank of Botswana Prioritizes Safety in CBDC Research
Ruth Baitshepi, head of the digitalization and innovation hub at the bank, said that research is at its initial stages. The overall aim is to learn how a CBDC can lead to the enhancement of the Botswana financial system and whether advantages are more valuable than the risks. Similar to most African nations, Botswana is taking its time to decide the digital future of money. Among others, South Africa is already conducting a pilot project, whereas Namibia, Zambia, and Zimbabwe are also conducting their research.
One of the reasons why Botswana is interested in the creation of a DLT-based CBDC is to make the financial system more effective and inclusive. Specifically, it could benefit the people in rural settings with little or no access to banks. A digital currency can also enable them to make payments, send money, and manage savings easily. It may also assist the government in perfecting the monetary policy, as well as facilitate the process of trade across the borders, making it safer and less time-consuming.
To facilitate this investigation, the Bank of Botswana will examine the technical, legal, and financial matters of a CBDC. These things involve putting the right structures in place, establishing new regulations, and ensuring that financial institutions that exist are capable of adjusting. There will be a significant emphasis on cybersecurity so that the digital exchanges can be secure and people can secure information. The bank does not want to be exposed to any risks that can be related to hacking or fraud.
Botswana Aligns with Global Trend in CBDC Exploration
At the same time, other countries are moving ahead with their own digital currency efforts. The recent news in the Reserve Bank of Australia has already reached the third stage of Project Acacia managed to experiment with the real-life application of CBDCs and stablecoins and tokenized assets. The project is listed in the program of the Australian government to modernize the financial system on blockchain. It can be faster in the payment process and less costly in the transaction.
The Philippines, Bangko Sentral ng Pilipinas (BSP) began testing a CBDC in December 2024, which finished in January 2025. This project was an experiment that was a proof of concept and tested a wholesale CBDC to improve interbank payments. It would allow the banks to trade money even during the weekends or late hours of the night. The BSP is sure that the Project Agila will lead to the flexibility and responsiveness of the financial system.
Botswana launched its CBDC feasibility pilot in July 2025 as a cautious yet forward-thinking move toward digital transformation. The country carefully evaluated technical systems to ensure reliability and scalability. In addition, it examined legal frameworks to align the digital currency with national laws. Furthermore, cybersecurity measures were tested to guarantee protection against digital threats. As a result, Botswana is steadily building confidence that its future CBDC will be secure, inclusive, and effective.
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