Proposed new proclamation pave the potential introduction of a central bank digital currency in Ethiopia, if approved by lawmakers.
The Council of Ministers endorsed draft revisions to the National Bank of Ethiopia Establishment Proclamation.
A key amendment establishes a legal groundwork enabling the central bank to issue a digital currency "as necessary", giving it leeway to explore the option in future.
This positions Ethiopia on the frontier of burgeoning CBDC developments globally. Over 100 countries are researching state-backed digital money according to a 2021 study.
Approval by parliament would bring Ethiopia closer to potentially developing regulations and technology for a CBDC rollout.
A study last year found 130 countries representing 98 percent of global GDP are exploring CBDCs, with almost half in advanced stages of development, pilots or launch. Eleven nations have already introduced CBDCs, including in the Caribbean and Nigeria. India and Brazil are slated to launch next year. Saudi Arabia recently joined Project mBridge, a CBDC trial led by China.
The Council's endorsement starts Ethiopia down the path of reconsidering its monetary frameworks for the digital age. Final sign-off from lawmakers will determine if a CBDC becomes reality.