The International Monetary Fund (IMF) has advised Namibia against issuing a retail central bank digital currency (CBDC) at this time. The IMF believes that the instant payment solutions (IPS) currently being developed by the Bank of Namibia (BON) are better positioned to address affordability and interoperability issues. The IMF report argues that major financial institutions in Namibia have already committed resources to IPS initiatives, leaving no room to support a retail CBDC project. In addition, the IMF states that the benefits of a CBDC, such as offline capabilities and programmability, rely on technologies that are not yet mature for mass adoption. The IMF emphasizes that a retail CBDC is unlikely to address financial exclusion without first addressing the root causes of exclusion, such as inadequate infrastructure and low financial literacy. The IMF recommends that Namibia gather sufficient facts and evidence before proceeding with CBDC development, and also encourages collaboration with other central banks in the region. If the decision is made to issue a CBDC, the IMF advises that the Namibian central bank should continue to develop expertise and allocate resources without hindering other reform initiatives.



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