The governor of the Bank of Mauritius told a meeting of central bank technologists about the development of the island nation’s CBDC ambitions. 

Mauritius plans to begin the pilot phase of a digital rupee in November, Bank of Mauritius Governor Harvesh Kumar Seegolam published. numerous of the parameters of the prospective central bank digital currency (CBDC) are earlier in place.

Speaking at the International Monetary Fund/ World Bank Community of Central Bank Technologists convocation held on the main island, Seegolam told he prioritized CBDC evolution when he took office in 2020:

“As a central banker, I need not stress upon the determining role that CBDCs can play, not only in protecting monetary sovereignty but also in assisting central banks and regulatory authorities on the front of AML/CFT [Anti-Money Laundering/Combatting the Financing of Terrorism].”

Consultations with International Monetary Fund (IMF) experts embarked on the equal year and resulted in the production of a feasibility report. According to Seegolam, Mauritius was the initial country to profit from IMF technical assistance with its CBDC project.

Related: IMF offers Jordan’s central bank recommendations for implementing retail CBDC

The Bank of Mauritius set up a sandbox with an unnamed partner in December to research potential features and “ craft the Digital rupee grounded on the Mauritian specificities. ”

The digital rupee should be “ a compensation instrument to be made available to one and all ” that will be intermediated to “ ensure that commercial banks continue to be completely involved in our CBDC journey. ” It'll similarly make monetary policy simple to manage and support financial stability, Seegolam told. The digital rupee will be interest-free.

Seegolam told the Bank of Mauritius “ is contemplating ” beginning a digital rupee pilot phase in November. Phase two of the project will be the evolution of its use in cross-border transactions, he added.

Mauritius has been gradually taking on blockchain technology for several years. The country governed digital asset custody licensing and security token offerings in 2019. It was at one time seen as an arising mecca for technology.

(DEREK ANDERSEN, Cointelegraph, 2023)