Digital Money and Payments Modernization: Exploratory Stakeholder Survey (Ethiopia)

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Introduction

The National Bank of Ethiopia is conducting an exploratory study on payment system modernization and emerging forms of digital money being discussed globally (including, among other concepts, central bank digital currency). This survey is for research purposes only and should not be interpreted as an announcement of any new product, policy, or timeline.

Some questions ask you to consider hypothetical scenarios to help us understand potential benefits, risks, and prerequisites under Ethiopian market conditions. Your responses will be analyzed in aggregate and reported anonymously.

Special note: This consultation is intended to inform a high-level feasibility assessment and to understand stakeholder perspectives on multiple modernization options.

Respondent profile

A1. Stakeholder segment (select one primary) *

If other please specify *

A2. Your role/function *

If other please specify *

A3. Seniority (optional)

If other please specify

B1. Over the next 3 years, what are the top priorities for payments modernization in Ethiopia? (pick up to 3) *

Reducing transaction costs
Improving transaction speed (retail)
Improving reliability/uptime
Increasing interoperability across providers
Strengthening consumer protection/dispute resolution
Strengthening Anti Money Laundering (AML)/Combating the Financing of Terrorism (CFT) effectiveness
Expanding merchant acceptance
Improving cross-border payments/remittances
Reducing cash handling costs/risks
Improving government payment efficiency (G2P/P2G)
Other (specify)

If other please specify *

B2. What are the biggest pain points today for end users (customers/merchants)? (pick up to 3) *

Cost/fees
Failed/late transactions
Limited acceptance network
Lack of trust/fraud concerns
Limited access to accounts/IDs
Poor customer support/dispute handling
Cross-border friction
Other (specify)

If other please specify *

B3. Which modernization approaches should be prioritized for research and investment? (rank top 3) *

Upgrading existing retail payment rails and interoperability
Strengthening e-money/mobile money frameworks
Enhancing fast payments/instant settlement capability
Exploring new forms of digital sovereign money (including CBDC concepts)
Tokenization / new settlement models for wholesale markets
Other (specify)

If other please specify *

Awareness and concept clarity

C1. Before today, how familiar were you with the concept of a central bank digital currency (CBDC)? *

Very familiar (can explain it confidently)
Somewhat familiar (general idea)
Heard of it, but not sure what it means
Not familiar at all

C2. Which statement best matches your understanding? (choose one) *

CBDC is a digital form of the national currency that would be a liability of the central bank, usable for payments and holding value
CBDC is a cryptocurrency like Bitcoin
CBDC is the same thing as mobile money/e-money provided by private companies
Not sure / need more information

C3. In your own words, how would you describe CBDC to a colleague/customer? *

C4. Which distinctions are clear to you today? (select all that apply) *

CBDC vs commercial bank deposits
CBDC vs mobile money
CBDC vs privately issued stablecoins/crypto-assets
Retail (general-purpose) vs wholesale (financial institutions) CBDC
Not clear enough to comment yet
Other (specify)

If other please specify *

C5. Has your institution conducted internal work related to CBDC or digital sovereign money concepts? *

Yes, strategic/business assessment
Yes, technical feasibility assessment
Yes, both
Not yet
Not applicable / prefer not to say
Other (specify)

If other please specify *

C6. Self-assessed organizational readiness to discuss this topic *

High (active initiatives / dedicated team)
Moderate (some internal capability)
Low (limited expertise)
Very limited (need foundational support)
Not applicable

Impact assessment

The next questions are hypothetical. Please answer based on your view of plausibility in Ethiopia if, at some point in the future, a CBDC concept were explored further. This does not indicate a decision to proceed.

Scale definition:
0 = Strongly disagree
10 = Strongly agree
Don’t know

D1. CBDC could improve the efficiency of retail payments (speed/cost/reliability). (0–10 + Don’t know) *

D2. CBDC could expand financial inclusion (access/affordability/usability for underserved groups). (0–10 + Don’t know) *

D3. CBDC could reduce settlement risk. (0–10 + Don’t know) *

D4. CBDC could increase operational and cybersecurity risks (new attack surface, outages, fraud). (0–10 + Don’t know) *

for payments improve

D5. CBDC could increase deposit volatility for commercial banks. (0–10 + Don’t know) *

D6. CBDC could materially affect liquidity management for banks/PSPs. (0–10 + Don’t know) *

Intermediary and ecosystem readiness

E1. If a retail CBDC were ever introduced, what direction of impact would you expect on bank deposits overall? *

Some shift from deposits to CBDC holdings
Significant shift from deposits to CBDC holdings
Could increase deposits (net)
No meaningful change
Don’t know / depends on design

E2. If a retail CBDC were ever introduced, would it require changes to your liquidity management framework? *

Yes
No
Depends on design (limits/remuneration/intermediation model)
Don’t know / not applicable

E3. If a retail CBDC were ever introduced, what level of technology investment would your organization expect? *

Minimal (configuration/integration only)
Moderate (new modules + integration + security uplift)
Significant (major platform changes)
Cannot estimate yet
Not applicable

E4. Current integration capability (today) *

Ready with current architecture
Ready with moderate upgrades
Would require significant upgrades
Don’t know / not applicable

Which best describes your organization’s capability to integrate with a new national payment platform or public-sector settlement interface?

E5. If you selected “upgrades,” which areas are the main constraints? *

E6. Primary concerns (pick up to 3)

Deposit displacement / funding cost changes
Liquidity risk / run dynamics
Integration cost and delivery risk
Cybersecurity and fraud
Compliance and AML/CFT burden
Consumer protection / dispute resolution complexity
Data privacy / surveillance concerns
Reputational risk
Customer behaviour change / disintermediation
Other (specify)

Specify if you select other *

Safeguards and design priorities

F1. If digital sovereign money concepts were explored further in Ethiopia, which safeguards would you consider essential? (select up to 5)

Clear legal basis and governance
Explicit privacy protections and data minimization
Strong AML/CFT and fraud controls with clear responsibilities
Resilience requirements (availability, redundancy, incident response)
Limits on holdings/transactions (to manage volatility/run risk)
Tiered remuneration (if considered) to reduce disintermediation incentives
Offline capability (for outages/remote areas), with risk controls
Interoperability with existing payment systems
Consumer protection (error resolution, liability rules, redress)
Clear cost allocation and fair competition rules for intermediaries
Transparent communications and stakeholder engagement approach
Other (specify)

If other please specify *

F2. Would your organization consider participating in exploratory activities if invited? *

Yes
Maybe / depends on scope and confidentiality
No
Not applicable

F3. If “depends,” what conditions would matter most? (select all if applicable) *

Clear objectives and limited scope
Legal protections/confidentiality
Cost recovery/support
Time and resource expectations
Clarity on data handling and reporting
Clear exit criteria and non-commitment language
Other (specify)

If other please specify *

F4. End-user trust

How likely do you think customers are to trust a central bank-issued digital form of the Birr? *

0 = Not likely at all 10 = Very likely

F5. What property would drive adoption the most? (pick up to 3)

Lower fees
Faster payments
Wider acceptance (online and in-person)
Strong privacy protections
Offline capability
Ease of use (simple UX)
Integration with existing wallets/banks
Government use cases (G2P, taxes/fees)
Trust in the issuer
Other (specify)

If other please specify *

F6. What concern would drive resistance the most? (pick up to 3) *

Privacy concerns
Fear of reduced access to cash
Fear of bank instability or deposit impacts
Complexity/learning curve
Fraud/scams
Poor reliability/outages
Limited acceptance network
Fees or device costs
Other (specify)

If other please specify *

F7. Over the next 2–3 years, where should Ethiopia focus its effort related to digital money and payments modernization? *

Prioritize upgrading existing payment infrastructure and interoperability
Prioritize strengthening private mobile money frameworks
Continue research on CBDC concepts alongside other options
Expand capacity-building only (skills, legal analysis, risk assessment)
Defer CBDC research for now and focus elsewhere
Other (specify)

If other please specify *

F8. If digital sovereign money concepts were explored further, what is the single most important design principle for Ethiopia? *