Mauritius Speeds Up Digital Currency in 2025 Monetary Transformation

Dr. Rama Sithanen, Governor of the Bank of Mauritius (BoM), discussed major changes in the financial landscape at the University of Mauritius International Research Symposium on Service Management. He highlighted the growing focus on Central Bank Digital Currency (CBDC), or digital currency issued by the central bank.

With rapid advances in financial technology and the declining use of cash, central banks are rethinking monetary systems.

Governor Sithanen explained that the traditional financial system, once dominated by cash, now faces competition from digital payments, cryptocurrencies, and private digital currencies.

In response, the BoM has started working on a retail CBDC, a digital version of the rupee, pilot tested in 2024.

The goal of introducing the digital rupee is to make payments more efficient, promote financial inclusion, and enhance transaction security.

However, Sithanen stressed the importance of carefully assessing the potential impacts on monetary policy, financial stability, data privacy, and cybersecurity.

“Launching a digital rupee requires thorough evaluation. A CBDC could influence how quickly money circulates and the demand for cash, which may affect inflation control,” he said.

Additionally, the BoM has become an observer in the international mBridge project, working alongside the BIS Innovation Hub and China’s central bank.

This initiative explores wholesale CBDCs for cross-border payments, aiming to facilitate regional and global trade.

Locally, digital payments are rapidly expanding. Between February 2020 and April 2025, mobile payments in Mauritius increased more than tenfold—from Rs 1.8 billion to Rs 25.7 billion. Internet banking transactions also doubled, reaching Rs 647 billion.

To support this growth, the BoM has introduced infrastructures like MauCAS and QR codes to enable easier interbank payments.

Governor Sithanen also mentioned plans to develop a framework for fully digital banks.

Some foreign financial institutions have already approached the BoM to explore establishing operations in Mauritius.

Amid the rise of fintech, digital wallets, and artificial intelligence in financial services, the BoM aims to stay proactive and practical.

Its strategy for CBDC reflects a desire to modernize the financial system while maintaining stability and integrity.

Source: Defi Media