The rise of digital currencies and full digital payment solutions such as Central Bank Digital Currencies (CBDCs) has gained momentum in many parts of the world. However, the reality of digital literacy in Africa, and particularly in countries like Morocco, casts doubt on the potential success of these initiatives.
CBDCs are digital versions of fiat currency that are issued by central banks and can be used for peer-to-peer transactions or as a means of payment for goods and services. The use of CBDCs can improve financial inclusion and promote cashless economies, but the adoption of these digital currencies requires a certain level of digital literacy that may not be present in many African countries.
In Morocco, for example, only 28% of the population has access to the internet and a significant proportion of those who do have limited digital literacy. According to a study conducted by the Moroccan High Commission for Planning, only 39% of the population has basic digital skills, and just 10% are considered to have advanced digital skills. This low level of digital literacy means that many people in the country may not be able to fully engage with digital payment solutions like CBDCs, which could limit their uptake.
The issue of digital literacy is particularly acute in rural areas of Africa, where many people lack access to basic services such as education and healthcare, let alone digital infrastructure. Without adequate education and infrastructure, it is difficult to see how CBDCs or other digital payment solutions can be successfully adopted across the continent.
Moreover, CBDCs and other digital payment solutions are vulnerable to cyber-attacks and digital fraud. The lack of digital literacy in Africa means that many people are unlikely to be aware of these risks or how to protect themselves from them. This could lead to widespread fraud and undermine public confidence in digital currencies, which could slow their adoption.
Despite the potential of CBDCs and other digital payment solutions, the reality of digital literacy in Africa suggests that these initiatives may be limited in their reach. To truly improve financial inclusion and promote cashless economies, policymakers must take a holistic approach that includes investments in digital infrastructure, education, and cybersecurity.
In conclusion, while the potential of CBDCs and other digital payment solutions cannot be ignored, the limited digital literacy in many African countries, including Morocco, raises questions about their potential success. Policymakers and industry leaders must take these limitations into account when planning the adoption of digital currencies in the region. Only then can we hope to achieve a more inclusive and prosperous digital economy in Africa.