In a significant move to embrace digital innovation, the Central Bank of Mauritania has teamed up with renowned SecurityTech company Giesecke+Devrient (G+D) to begin developing a digital version of the national currency, Ouguiya, according to a recent report. Published press release. The project, announced at the International Monetary Fund (IMF) and World Bank Group spring meeting in Washington, aims to transform Mauritania’s economic landscape by integrating advanced digital solutions.
A central bank digital currency (CBDC) is essentially a digital form of a country’s official currency, established and managed by a central bank. Unlike decentralized cryptocurrencies such as Bitcoin, CBDCs are fully regulated and considered legal tender by governments. CBDC adoption is gaining momentum globally as countries seek to strengthen financial inclusion, streamline payment systems, and enhance economic security.
Details of the Mauritania-G+D Agreement
Under the newly signed agreement, G+D will help Banque Centrale de Mauritanie define the technology and operational framework needed for Digital Ouguiya. This joint effort is geared toward examining the potential benefits and applications of digital currencies to meet national economic goals and address the specific needs of the Mauritanian people.
Economic and social impact
The introduction of digital currency in Mauritania is poised to bring several key benefits. These include improving access to financial services for unbanked populations, improving the efficiency of currency transactions, and enhancing economic transparency. Additionally, digital Ouguiya can play an important role in the economic empowerment of various sectors of society, promoting more equitable economic growth.
Mohamed Lemine Ould Dhehby, Governor of the Central Bank of Mauritania, emphasized the strategic importance of the digital currency project. “This initiative plays a pivotal role in our country’s economic modernization efforts.” Adding to this, Wolfram Seidemann, CEO of G+D, said: “Our collaboration underlines our commitment to fostering the country’s digital economic transformation.”
Going forward, the project will undergo rigorous planning and testing phases to ensure that the functionality and security of the digital currency meets the highest standards. This initiative is part of a broader strategy led by Mauritania’s Ministry of Digital Innovation to leverage technology for sustainable economic development.
The move towards a digital Ouguiya highlights Mauritania’s commitment to promoting economic stability and growth through innovative technologies. As the country embraces these changes, it sets a precedent for the development of West Africa’s digital economy.