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Rwanda to implement CBDC by 2026 after consultations and testing

The country’s government has announced plans to introduce a central bank digital currency (CBDC) as a means to improve the efficiency of the financial system, increase financial inclusion and support the digital economy.

Date: 2024-06-03 Author: Łukasz Michałek
Rwanda to implement CBDC by 2026 after consultations and testing

Rwanda, an East African nation , intends to create its own digital retail central bank currency (CBDC) to confirm its importance in the future landscape of the global economy by 2026.

According to the National Bank of Rwanda, CBDC would be a safe and convenient alternative to cash, potentially attracting more people to the banking system. In a recent interview with The New Times, Rwanda’s deputy central bank governor, Soraya Hakuziyaremenye, discussed plans for the digital currency and its benefits for citizens.

She pointed out that several African countries, such as Nigeria, Ghana and South Africa, are already testing or launching their own digital currencies. She mentioned that Rwanda’s central bank is working with the Ministry of Finance and Technology from 2022 to analyze these examples and study Rwanda’s CBDC.

Rwanda’s Central Bank prioritizes risk assessment for CBDCs

Their research underscored the importance of understanding not only the technology used, but also the potential risks associated with issuing digital currency.

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She explained that the CBDC would encourage competition and innovation in payment systems, supporting Rwanda’s goal of a cashless economy . Additionally, it would streamline international transactions. The central bank plans to take a balanced approach to CBDC, requiring government approval before continuing.

The official stressed that public adoption is crucial to the success of the CBDC. The bank does not want to introduce a digital currency for the sake of the idea; the currency must provide clear benefits to Rwandan citizens.

CBDC pilot program in Rwanda to test technology and design in a controlled environment

Rwandans have four more weeks to participate in a public discussion of CBDC. The central bank will then proceed with a pilot test to assess its feasibility.

“This will allow us to test the technology, design and speed on a small scale,” – the governor said. “But there is also an aspect of cases where we want to test the technology in other countries, especially for cross-border payments, a task that will take six months or so.”

The pilot test will involve a select group of individuals and companies using CBDCs. This will enable the central bank to assess the liquidity, resilience and effectiveness of the technology in managing potential risks.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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