Zambia is currently in the research phase.

CBDC History and Development

In 2022, Bank of Zambia official Nkatya Kabwe told Bloomberg, “The results of [our] research will form part of the input in the policy considerations on whether to introduce a central bank digital currency in Zambia.” Kabwe also told Bloomberg that the Bank of Zambia was looking into CBDCs hoping that a CBDC might expand financial inclusion, increase traceability, and improve the efficiency of payment systems.

In 2023, the Bank of Zambia published its plan for payment system. Notably, the plan outlined the central bank’s plan for researching and developing a CBDC. The plan explained that the Bank of Zambia will establish a plan for a CBDC between 2024 and 2026. This plan will include ensuring regulations are in place to support implementation, supervision, and oversight of the CBDC. The plan also recommended starting a pilot to explore possible use cases.

Human Rights and Civil Liberties Concerns

Zambia earned a 54 out of 100 in Freedom House’s 2023 Freedom in the World report. As Freedom House noted in the report, corruption is a major issue for Zambia. The issuance or adoption of a CBDC in Zambia could worsen this issue.

According to Freedom House, “Corruption in government is widespread, and impunity is common.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.