Will Europe and America be defeated by Rwanda? Own crypto possible as early as 2026
Rwanda, a country in East Africa, wants to issue its own digital currency by 2026 to strengthen its role in the global economy.
The National Bank of Rwanda says this Central Bank Digital Currency, or CBDC for short, can be a safe and convenient replacement for cash and give more people access to the banking system.
Soraya Hakuziyaremenye, Deputy Governor of the Central Bank of Rwanda, recently spoke in an interview with The New Times about the plans for the digital currency and its benefits for citizens.
Example of other African Countries
Hakuziyaremenye pointed out that several African countries such as Nigeria, Ghana and South Africa are already testing or launching their own digital currencies.
Since 2022, the Rwandan central bank has been working with the Ministry of Finance and Technology to study these examples and explore its own digital currency.
Their research showed that it is important to understand not only the technology, but also the potential risks of issuing a digital currency.
A digital currency would stimulate competition and innovation within the payment system and support Rwanda’s goal of a cashless economy. It would also facilitate international transactions. The central bank wants to proceed carefully and needs government approval before proceeding.
It is important that citizens accept the digital currency. The bank does not just want to launch a digital currency; it must provide clear benefits for the Rwandan people.
Pilot phase for CBDC
Rwanda still has four weeks to participate in the public debate on the digital currency. After that, the central bank will begin a pilot test to assess feasibility.
“This will allow us to test the technology, design and speed on a small scale,” the governor said. “We also want to test the technology in other countries, especially for cross-border payments. This test will take approximately six months.”
The pilot phase will involve a selected group of people and companies that will use the digital currency. This allows the central bank to assess the smoothness, resilience and effectiveness of the technology and manage potential risks.
Rwanda has undergone a remarkable transformation in recent decades. The stable political environment under President Paul Kagame, after the turbulent 1990s, has created a favorable environment for rapid economic growth. The focus on development-oriented sectors, such as agriculture, tourism and technology, has contributed to this.
