Botswana Launches CBDC Feasibility Study to Boost Financial Inclusion

The Bank of Botswana has launched a feasibility study to assess the potential introduction of a central bank digital currency (CBDC), marking the country’s initial foray into digital monetary innovation [1][2]. The initiative, announced in July 2025, aims to evaluate how a digital currency could enhance financial access, streamline payment systems, and strengthen cybersecurity, while ensuring alignment with global CBDC trends. The central bank emphasized that the study is in its early stages, with no immediate plans for implementation. A key focus will be assessing the technical, legal, and financial implications of introducing a digital currency, as well as its impact on the broader economy [2].

The move aligns with a growing trend across Africa, where several countries are exploring or piloting CBDC initiatives to modernize their financial systems. For instance, the Reserve Bank of Australia recently advanced to the third phase of its Project Acacia, testing real-world applications of CBDCs and stablecoins, while the Bangko Sentral ng Pilipinas (BSP) concluded a wholesale CBDC pilot in January 2025 to improve interbank transactions [1]. These efforts reflect a broader global push toward leveraging blockchain and digital currencies to enhance financial efficiency and inclusivity.

In Botswana, a potential CBDC could particularly benefit rural populations with limited access to traditional banking services. A digital currency would allow such communities to make payments, transfer money, and manage savings more easily, while also supporting government efforts to refine monetary policy and improve cross-border trade [2]. The Bank of Botswana is also keen to ensure robust cybersecurity measures to protect digital transactions and prevent fraud or hacking risks.

Meanwhile, the broader digital finance landscape remains shaped by regulatory and competitive challenges, particularly in markets like the United States. According to a recent analysis by venture capital firm Andreessen Horowitz, major banks are increasingly restricting access to customer data and imposing high fees on fintech and crypto platforms, a trend referred to as "Chokepoint 3.0." General Partner Alex Rampell highlighted how institutions like JPMorgan Chase are leveraging their control over financial data to raise operational costs for third-party services, potentially stifling competition and innovation [3]. While Botswana’s CBDC study is still in its preliminary phase, the central bank will need to consider such global dynamics when shaping its digital strategy.

The feasibility study is expected to provide critical insights into the practicality, risks, and benefits of a CBDC for Botswana’s financial system. If the project proceeds, it would represent a significant step in the country’s digital transformation journey, with potential implications for financial inclusion, monetary policy, and cross-border trade.

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Source:

[1] Botswana Starts CBDC Feasibility Study Amid Global ...

(https://www.ainvest.com/news/botswana-starts-cbdc-feasibility-study-global-digital-currency-trends-2508/)

[2] Botswana Explores Potential Launch of Central Bank ...

(https://cryptoadventure.com/botswana-explores-potential-launch-of-central-bank-digital-currency/)

[3] 'Chokepoint 3.0' Has Arrived? a16z Warns of Anti- ...

(https://cryptoadventure.com/chokepoint-3-0-has-arrived-a16z-warns-of-anti-crypto-bank-tactics/)