The Bank of Uganda has launched a new five year Strategic Plan 2022 to 2027 (SP 2022-2027) with the aim of rolling out a digitally tracked Central Bank Digital Currency in line with a global trend aimed at phasing out paper money.
A CBDC is virtual money created by a Central Bank. It is reported that about 105 countries that are exploring CBDCs; among them, 50 countries are in an advanced phase of digital currency exploration, namely, development, pilot, or launch. This includes the USA and China.
“We will also pursue new goals such as the promotion of a sustainable financial system….in an evolving world, our SP 2022 -2027 includes a progressive approach to emerging issues such as central bank digital currencies,” Michael Atingi-Ego, the Deputy Governor pointed out that the Central Bank headquarters.
He added that the Central Bank will also pursue sustainability of the financial system, climatic risk, integrated reporting, big data, artificial intelligence and machine learning, cybersecurity as well as the adoption of technology in supervision and regulation (SupTech and RegTech).
Atingi-Ego explained that the new strategic plan is aligned with the country’s Vision 2040, National Development Plan III (NDP III), and the Financial Sector Development Strategy (FSDS), among others.
To this end, the Central Banks refined mission is “To promote price stability and a sound financial system in support of socio-economic transformation in Uganda”.