Digital Infrastructure Emerging

The Central Bank of Somalia (CBS) officially promotes financial stability.

The CBS has been working to further digital adoption in Somalia. In a press statement made in February 2021, the first money license was granted to Hormuud Telecom.

Digital 2020 confirmed that about 48% of Somalians were connected to mobile networks. There is increasing adoption of digital services and connections in Somalia. 

Poverty is reported in Somalia as about 70 percent of the population. 

As with Gutemala, foreign remittances are critical running at about 24 percent of GDP. 

The case for CBDC for people dependent on foreign remittances is clearly made out. It is clear as Somalia gains more digital infrastructure, CBDCs could be introduced especially using blockchain programs which have been very effective in the UN programs.

 

 

 

Remittances make important contributions to welfare, with 1 in 5 Somali households receiving remittances and many recipients relying heavily on these transfers. Without remittances, many of those households would fall into poverty.World Bank

 

By cryptorocks_editor

Editor.