RESEARCH: Liberia Central Bank Digital Currency (CBDC) Status and Context

Limitations of This Research

This report is based solely on publicly available information as of June 2024. It does not preclude the possibility that the Central Bank of Liberia (CBL) may be conducting non-public exploratory work, internal discussions, or preliminary research on CBDCs with external consultants or international partners. The absence of public announcements does not definitively confirm a complete absence of all CBDC-related activity within the CBL.

Current CBDC Status: No Publicly Announced Plans

As of June 2024, the Central Bank of Liberia has not publicly announced any concrete plans to research, pilot, or launch a Central Bank Digital Currency (CBDC). This finding is based on a review of official CBL publications, press releases, and statements from senior officials CBL Official Website - No CBDC Mention. The CBL's most recent strategic plans focus on traditional monetary policy and financial stability, with no CBDC-related objectives in publicly available documents CBL Annual Report 2022.
No evidence of a CBDC feasibility study, working group, or public consultation has been found in any official CBL communication or Liberian government gazette as of June 2024. The CBL’s Financial Stability Report (2022) does not reference CBDC or digital currency experimentation CBL Financial Stability Report 2022.

Financial Inclusion, Cash Reliance, and Digital Payments

Financial inclusion remains very low: According to the Global Findex 2021 database, only 33% of Liberian adults (age 15+) had an account at a financial institution or mobile money provider in 2021. This is below the Sub-Saharan Africa average (55%) and significantly below the global average (76%) World Bank Global Findex 2021 - Liberia.
Cash is the dominant payment method: The Liberian economy is heavily cash-based. The IMF’s 2022 Article IV Consultation noted that "the use of cash remains pervasive, with limited digital payment infrastructure" IMF 2022 Article IV Consultation - Liberia.
Mobile money penetration is growing but still low: Mobile money accounts reached approximately 1.2 million (against a population of ~5.2 million) as of 2022, per GSMA data. However, active usage is lower, and geographic coverage favors urban areas GSMA Mobile Economy Sub-Saharan Africa 2023.
The CBL has prioritized financial inclusion through its National Financial Inclusion Strategy (2018–2022), which targeted increasing access to formal financial services to 60% of adults by 2022—a target largely missed CBL National Financial Inclusion Strategy.

Role of Remittances in the Liberian Economy

Remittances are a critical economic lifeline: Remittances to Liberia equaled approximately 25-30% of GDP in recent years. In 2022, recorded remittance inflows were $600 million (World Bank data), with unofficial flows likely much higher World Bank Migration and Remittances Data.
High cost of remittance transfers: The cost of sending $200 to Liberia averaged 8.5% in Q1 2024, well above the UN Sustainable Development Goal target of 3%. This high cost is exacerbated by reliance on traditional money transfer operators (e.g., Western Union, MoneyGram) World Bank Remittance Prices Worldwide.
A CBDC could theoretically reduce remittance costs by enabling direct peer-to-peer digital transfers, but no CBL statement has referenced this potential application publicly.

Technological Infrastructure and Mobile Money Adoption

Internet penetration is low: As of January 2024, internet penetration in Liberia was estimated at 26% of the population (approx. 1.4 million users). This is below the Sub-Saharan Africa average of 36% DataReportal Digital Liberia 2024.
Mobile phone ownership is higher: Mobile cellular subscriptions reached 108 per 100 people in 2022 (many multi-SIM users), but smartphone penetration is estimated at only 30-40% of mobile users ITU Digital Development Dashboard - Liberia.
Electricity access is a major barrier: Only 29% of Liberia’s population has access to electricity (2021 World Bank data), severely limiting the ability to charge devices and use digital financial services consistently World Bank Access to Electricity - Liberia.
Mobile money agents remain concentrated in Monrovia and other urban centers, with rural areas underserved, creating a "last mile" problem for any CBDC deployment GSMA State of the Industry Report on Mobile Money 2023.

Socio-Economic Challenges a CBDC Could Address (or Create)

Currency stability issues: Liberia uses the Liberian Dollar (LRD), but the economy is heavily dollarized. Parallel exchange rates and currency depreciation are persistent issues. The IMF notes that "dollarization is high, with foreign currency deposits accounting for about 60% of total deposits" IMF Liberia Selected Issues 2022.
Large informal economy: The informal sector accounts for an estimated 60-70% of GDP, creating a large tax gap and limiting monetary policy transmission. A CBDC could theoretically improve tracking of economic activity, but no CBL analysis has been published on this ILO Informal Economy Database.
Financial inclusion gaps: Women, rural populations, and youth are particularly underserved. Only 25% of women had a financial account in 2021 vs. 41% of men World Bank Global Findex Gender Data. A CBDC targeting mobile money could help, but low smartphone/ internet penetration limits feasibility.
Corruption and governance concerns: Liberia ranks 133rd out of 180 in Transparency International’s 2023 Corruption Perceptions Index. Any digital currency system would require robust governance and anti-corruption frameworks, which are currently underdeveloped Transparency International CPI 2023.

Regional and Global Context: ECOWAS and West Africa

ECOWAS has no collective CBDC strategy: The Economic Community of West African States (ECOWAS) has not issued a unified position on CBDCs. The bloc’s focus remains on the long-delayed single currency (the Eco). No ECOWAS resolution or directive on CBDCs exists ECOWAS Official Website.
Nigeria leads the region: Nigeria launched the eNaira in October 2021, becoming the first African country to issue a CBDC. However, adoption has been low (estimated ~1% of mobile money users by 2023). The Central Bank of Nigeria has publicly acknowledged challenges including poor user uptake and technical issues Central Bank of Nigeria eNaira Page.
Ghana is piloting: The Bank of Ghana launched a pilot of its eCedi in 2022. While still in trial phases, it is the most advanced CBDC project in West Africa. See their detailed design document Bank of Ghana eCedi Design Paper.
Sierra Leone: The Bank of Sierra Leone has conducted exploratory discussions but has not announced a formal CBDC project as of early 2024. No public report found Bank of Sierra Leone Official Site.
Côte d’Ivoire: No public CBDC plans from the Central Bank of West African States (BCEAO), which controls the CFA franc for the WAEMU zone (including Côte d’Ivoire, Senegal, etc.). BCEAO has only issued general statements about monitoring digital innovations BCEAO Official Website.

Private Digital Currencies and Stablecoins in Liberia

No specific regulation exists: Liberia has not enacted any laws specifically addressing cryptocurrencies, stablecoins, or digital assets. The CBL has issued no public guidance or warnings beyond generic financial stability statements CBL Press Releases.
Adoption is minimal but unregulated: Informal peer-to-peer crypto trading exists, particularly through platforms like Binance and local Telegram groups, but no official data is available. The 2020 UNCTAD report on Liberia noted the absence of a regulatory framework for digital currencies UNCTAD Liberia Case Study.
No known stablecoin projects are targeting the Liberian market. Remittances are still overwhelmingly sent via USD-denominated traditional channels.

CBL Regulatory and Technical Capacity

The CBL has limited technical capacity: A 2023 IMF technical assistance report noted the CBL faces constraints in "human resources, IT infrastructure, and supervisory capacity" for even traditional financial oversight IMF Liberia Technical Assistance Report 2023.
No dedicated fintech or innovation unit is publicly listed within the CBL’s organizational structure. The CBL’s 2022–2026 Strategic Plan prioritizes core central banking functions (monetary stability, banking supervision) with no references to CBDCs or advanced digital payment infrastructure CBL Strategic Plan 2022-2026.
External support: Liberia has received IMF and World Bank technical assistance primarily for traditional banking sector reforms, not for digital currency experimentation.

Summary of Key Findings

Indicator	Status	Source
Public CBDC announcement	No public plans as of June 2024	CBL official website
Financial inclusion	33% account ownership	Global Findex 2021
Internet penetration	26%	DataReportal 2024
Remittances as % of GDP	~25-30%	World Bank Migration Data
ECOWAS CBDC policy	None	ECOWAS official documents
Nigerian eNaira launched	Yes (2021)	CBN
Ghana eCedi pilot	Active	Bank of Ghana
CBL crypto regulation	None	CBL press releases
CBL technical capacity	Limited	IMF technical reports
Currency dollarization	High (60% foreign currency deposits)	IMF Selected Issues 2022

Sources

FACT: intel.no-announced-plans-for-a-cbdc-as-of

Status: SOURCED Confidence: 0.98 Current claim: As of June 2024, the Central Bank of Liberia has not publicly announced any concrete plans to research, pilot, or launch a Central Bank Digital Currency (CBDC). Source: https://www.cbl.org.lr/ (Official CBL website) and https://www.cbl.org.lr/sites/default/files/documents/CBL_Strategic_Plan_2022-2026.pdf (CBL Strategic Plan, no CBDC references) Notes: This is confirmed by a comprehensive review of the CBL's official website, published strategic plans, annual reports, and financial stability reports, none of which contain any mention of CBDC research, pilot, or launch plans. The source is the highest authority for this claim: the Central Bank of Liberia itself. Confidence is 0.98 rather than 1.0 because it is impossible to definitively prove a negative (i.e., absence of all non-public work), as noted in the Limitations section of the report.

Liberia -- General Source Discovery Regulatory Overview

Methodology

Limitations