In a groundbreaking move towards digital finance, Banky Foiben’i Madagasikara (BFM) has chosen eCurrency as its technology partner for the creation of eAriary, Madagascar’s first Central Bank Digital Currency (CBDC). This collaboration aims to enhance financial inclusion, streamline economic operations, and utilize state-of-the-art encryption technology to ensure a secure financial future for Madagascar.
Partnership and Announcement
The announcement was made public on October 29, 2025, revealing eCurrency as the preferred technology partner for this transformative initiative. Jonathan Dharmapalan, CEO of eCurrency, expressed enthusiasm about the partnership, stating,
“We are truly honored to be selected as the preferred technology partner for Madagascar’s CBDC initiative. The groundbreaking eAriary project marks a pivotal step in the country’s financial innovation journey.”
Jonathan Dharmapalan, CEO of eCurrency
This partnership marks a significant milestone in Madagascar’s efforts to modernize its financial system and increase access to banking services across the country.
Under the agreement, while eCurrency will oversee the technology aspects, the distribution of the eAriary will be managed by private sector entities, including local banks and fintech companies. However, BFM maintains sole authority over the issuance of the digital currency, ensuring central control over its monetary policy.
DSC3 Technology Features
The eAriary will leverage eCurrency’s Digital Symmetric Core Currency Cryptography (DSC3), a cutting-edge technology designed to provide high levels of security and scale for digital currencies. This cryptographic framework is not only energy-efficient but also quantum-resistant, making it well-suited for modern payment networks that anticipate future challenges from quantum computing.
“DSC3 technology is built to ensure compliance with regulatory standards while fostering an inclusive financial environment,”
an eCurrency representative
highlighting its adaptability and long-term vision.
Moreover, DSC3 enables the eAriary to operate in various architectures, including centralized, decentralized, and hybrid models. The technology ensures seamless interoperability with existing financial systems, which could significantly ease the transition for users accustomed to traditional financial methods. Importantly, enabling offline operation allows users in rural areas with limited access to internet services to participate in the economy without major disruptions.
Project Goals and Benefits
The eAriary initiative is designed with ambitious goals aimed at reshaping Madagascar’s economic landscape. Chief among these is the reduction of reliance on physical cash, which often leads to inefficiencies and high costs for both consumers and the central bank. By transitioning to a digital currency, Madagascar seeks to lower transaction costs and enhance financial traceability. As Aivo Andrianarivelo, a senior official at BFM, pointed out:
“We hope that, by the end of this process, the use of banknotes will decline, as managing them is very expensive for the Central Bank.”
Aivo Andrianarivelo, senior official at BFM
Crucially, the project emphasizes expanding access to financial services, particularly in rural regions where the banking infrastructure is often lacking. By offering a secure and efficient method for digital transactions, the eAriary can empower underserved populations, ultimately promoting broader economic growth across the nation. As part of this financial inclusion strategy, the project plans to provide tools that facilitate access to banking services for those previously excluded from the economic mainstream.
Pilot Phase and Implementation
The pilot phase of the eAriary project officially began on May 23, 2025, with plans to span ten months. This phase focuses on testing the currency’s functionality and assessing how well it meets the needs of rural communities. The pilot is a crucial step in a broader roadmap aimed at full-scale implementation outlined by BFM in recent years. During this pilot phase, various private-sector partners will work closely with BFM to evaluate the technology’s effectiveness and user acceptance.
In the context of a much larger vision, this program follows years of planning and consultation that initiated in 2020, showcasing BFM’s commitment to fostering an innovative banking environment. As the pilot progresses, the data collected will guide the further development of the eAriary, ensuring that it is effectively tailored to the unique needs of the Malagasy population.
Challenges and Concerns
Despite the promising potential of the eAriary project, challenges loom on the horizon, particularly concerning corruption and governance in Madagascar. Freedom House reports indicate that
“corruption remains a serious problem in Madagascar despite the adoption of recent reforms and anticorruption strategies.”
Freedom House
This raises legitimate concerns about the government’s capability to implement the CBDC in a manner that is transparent and free from favoritism or misuse of surveillance capabilities.
The introduction of a CBDC often prompts discussions on privacy and control, especially in nations grappling with corruption. Thus, it is crucial for stakeholders to establish robust frameworks that protect users while ensuring that the long-term goals of financial inclusion are met without sacrificing privacy and trust.
eCurrency’s Global Experience
eCurrency is not new to the world of CBDCs; it has been involved in major projects across the globe, including initiatives with the central banks of Jamaica and England. Their global experience gives Madagascar a reliable partner with established expertise in developing secure digital currency infrastructures. Richard Byles, Governor of the Bank of Jamaica, praised eCurrency for their excellence, stating:
“eCurrency Mint had demonstrated excellence in creating a new form of money, safely,”
Richard Byles, Governor of the Bank of Jamaica
a testament to their successful track record.
With this proven pedigree, combined with state-of-the-art technology like DSC3, eCurrency is well-positioned to lead Madagascar’s digital transformation in the financial sector. Their involvement not only brings technological prowess but also strategic insights necessary for addressing local challenges and leveraging global best practices in digital currency deployment.
The Road Ahead for Madagascar’s Digital Currency
The launch of the eAriary initiative is more than just a technological upgrade; it’s a step towards redefining the economic landscape of Madagascar. With the potential to improve financial inclusion, lower costs, and enhance efficiency, it could serve as a template for other developing nations seeking similar pathways to digital transformation. However, stakeholders must remain vigilant against the risks of corruption and ensure that this promising innovation serves the entire population.
As Madagascar embarks on this exciting journey, the world will be watching closely, eager to see how the eAriary initiative unfolds and its impact on the nation’s financial future. The right balancing act between innovation and governance will be key to achieving long-term success, setting a precedent for others in the region and beyond.
