Namibia could introduce a central bank digital currency within the next decade as part of broader financial sector reforms aimed at modernising regulation, strengthening governance and responding to technological change, former Johannes !Gawaxab, Governor of the Bank of Namibia, has said.
!Gawaxab said a central bank digital currency (CBDC), potentially a digital Namibia dollar, could be rolled out within five to ten years to complement cash and existing payment methods.
“Within the next five to seven years, central bank digital currencies will become common. I would not be surprised if, within the next five to ten years, the Bank of Namibia introduces a central bank digital currency, a digital Namibia dollar,” he said.
He said the potential introduction of a CBDC forms part of sweeping reforms in the financial sector, including amendments to the Banking Institutions Act to localise decision-making within Namibia. The changes follow concerns that key banking decisions were previously taken outside the country.
According to !Gawaxab, the amendments are intended to empower local boards, management and chief executives, while strengthening accountability, governance standards and oversight of cyber and credit risks.
He also said the central bank had consolidated regulatory oversight under its mandate in response to the rapid growth of digital payments. Responsibilities previously shared with the Payments Association of Namibia have since been brought fully under the Bank of Namibia.
This move, he said, was designed to support innovation, lower transaction costs and expand financial inclusion through clearer and more effective regulation.
The reforms further include the introduction of a regulatory framework for virtual assets, acknowledging that cryptocurrencies and digital assets have become a permanent feature of the global financial system. !Gawaxab said failure to address these developments would risk Namibia falling behind, necessitating a measured and responsible regulatory approach.
The Bank of Namibia has also advanced its digital transformation agenda through initiatives such as an innovation hub and the rollout of an instant payment platform. These efforts have earned the institution international recognition, including a pioneer award for digital transformation, as it prepares for a future in which payments are increasingly instant, digital and borderless.
“The capabilities we need to build largely revolve around having the right skill sets and technology to adapt the bank, as well as people who can implement the new strategies required in this new operating environment. We cannot go back to doing things the way they used to be,” !Gawaxab said.
!Gawaxab stepped down on 31 December 2025 after more than five years at the helm of the central bank. He was succeeded by Ebson Uanguta, who was appointed Governor with effect from 1 January 2026 for a five-year term.
