The National Bank of Rwanda is actively pursuing the development of a central bank digital currency (CBDC) following a comprehensive study that emphasized its necessity in the country, announced John Rwangombwa, the Governor of the National Bank.
Governor Rwangombwa revealed this on November 27 during the presentation of the central bank’s annual report for the financial year 2022/2023 to a joint plenary sitting of Parliament.
At the parliamentary session, Member of Parliament Pie Nizeyimana sought updates on the progress of the study initiated by the central bank to explore the potential uses and advantages of a digital currency in Rwanda.
Governor Rwangombwa responded, stating, “On CBDC, we completed the first study to see whether it is necessary to set up the digital currency. The study indicated that it is relevant, it can be done, and it is necessary.”
According to him, discussions had taken place with financial institutions and various public entities regarding the digital currency. A comprehensive report has been submitted to the government for deliberation at the cabinet level before engaging the general public.
Rwangombwa outlined the next steps in the process, stating, “After that, we will do a trial on how that can be implemented, and which technology we can use. It is an ongoing process that can take about two years before we issue a CBDC for use.”
In the interim, he said Rwanda will draw insights from international studies conducted by entities that are ahead in the CBDC space.
Earlier in 2022, Deputy Governor Soraya Hakuziyaremye had announced that Rwanda’s stance on digital currency would be clarified by the end of the year. The goal was to conclude research by December 2022 to determine whether to issue the CBDC.
Globally, 11 countries have successfully launched CBDCs, including the Bahamas, Jamaica, and Nigeria – the first in Africa, according to the Atlantic Council, an American think tank specializing in international affairs. China’s CBDC pilot, reaching 260 million people, is undergoing testing in various scenarios, including public transit, stimulus payments, and e-commerce.
