Rwanda to Launch Its Central Bank Digital Currency in 2026
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Coinspeaker Rwanda to Launch Its Central Bank Digital Currency in 2026 The Republic of Rwanda aims to create its own Central Bank Digital Currency (CBDC), within the next two years. This move, led by the National Bank of Rwanda (BNR), is poised to improve the country’s financial system, offer citizens a safe, free, and convenient alternative to physical cash, and bring more people into the banking system. Driving Force: Enhancing Financial Inclusion and Economic Competitiveness Soraya Hakuziyaremenye, the deputy governor of BNR, revealed in an interview with The New Times that the creation of the Rwandan digital franc would widen financial inclusion, enabling the unbanked population to start participating in the formal economy. She explained that just as Rwandans make trade using banknotes, the CBDC will perform the exact function. The BNR’s decision to develop a digital currency is driven by the global trend as many countries are either testing or have already launched their CBDCs. Soraya cited Rwanda’s close trading partner, China, which is currently at the piloting stage for its digital yuan. She explained that there could be a negative impact on the country’s economy should her trading partners have its digital currency and it does not. More so, she highlighted that several African countries such as Ghana, Nigeria, and South Africa have either launched or are testing their digital currencies. To ensure a smooth and successful launch of the digital franc, the BNR partnered with the Ministry of Finance and the Ministry of ICT and Innovation to conduct a comprehensive feasibility study. The research outcome has identified several potential benefits of Rwandan CBDC, including the potential to boost innovation and competition within payment service providers, improve cross-border payment, and help Rwanda’s cashless policy goal. Cautious Steps: Addressing Potential Risks and Embracing Public Consultation While the prospect of…
Filed under: News - @ June 3, 2024 11:24 am