The Bank of Mauritius plans to introduce a central bank digital currency, in English “Central Bank Digital Currency” (CBDC). The initiative falls within the framework of the fight against money laundering, which is of great concern to the Financial Action Task Force (FATF).

Mauritius' initiative has the unavoidable motive of making all monetary transactions transparent and accessible to the central bank. CBDC is the digital equivalent of cash: one rupee in digital currency is the equivalent of one rupee in cash. CBDC, which is like a central bank deposit, is part of fiat currency, like cash. What differentiates them is with respect to the costs of use, confidentiality and the degree of control of the central bank. The CBDC can lower the costs and increase the efficiency of the national payments system. It improves financial inclusion, as a bank account is not required. It lowers international transaction costs. It better tracks the movement of illegal funds as well as tax evasion, allowing the state to collect more revenue. It can prevent a bank run, as large withdrawals are limited. Finally, it represents an alternative to private cryptocurrencies which are more difficult to regulate.