Ethiopia is on the path to launching its central bank digital currency, following the approval of a draft announcement by the Ministerial Council. This move is expected to increase financial inclusion and innovation in the country. The digital currency will exist alongside physical money and will be governed by a legal framework that takes into account the experiences of other central banks and the rapid advancement of technology.

The National Bank of Ethiopia will be responsible for the implementation of the digital currency. They have stated that they will conduct research, consult with stakeholders and develop the necessary technology to support the digital currency. The bank will also update the regulatory framework to accommodate the new digital currency. This will involve creating new regulations and amending existing ones to address cybersecurity and data privacy concerns.

The introduction of the digital currency is expected to increase financial inclusion in Ethiopia. Many people in the country, particularly in rural areas, are unbanked or underbanked. The digital currency will provide them with access to financial services, enabling them to fully participate in the economy. It will also improve the efficiency of payment systems, reducing costs and the risk of fraud.

The launch of the digital currency is part of Ethiopia's broader economic reforms. The Ministerial Council has also voted to open the local banking industry to foreign competitors, which is expected to increase investment and economic growth. The move to digital currency will position Ethiopia as a leader in digital finance in Africa, setting an example for other countries on the continent.

The launch of the digital currency is expected to take place soon, following the approval of the draft announcement by the House of Representatives. The move is expected to bring about a new era of financial inclusivity and digital innovation in Ethiopia, increasing access to financial services and improving the efficiency of payment systems.