The Central Bank of Somalia on Saturday, February 27, issued the country’s first license to a mobile money service, bringing regulation to the widely used digital payment process for the first time.
The Central Bank of Somalia issued the license to Hormuud Telecom, the country’s largest telecommunications company, under the provision of mobile money service within the Federal Republic of Somalia. The governor of the Central Bank of Somalia Abdirahman Mohamed Abdullahi issued the licence.
Mobile money services emerged 10 years ago but were never regulated. The new regulation formalizes digital transactions as the primary payment method within the country and will enable further integration of the Somali financial system with the international financial system, officials said.
The use and circulation of Somali banknotes has been dwindling because of the absence of central monetary policies and because little new paper currency has been printed. But private businesses have nonetheless flourished in Somalia, where unregulated mobile money is extensively used for most buying, selling and transfers