By 2026, Rwanda, an East African country, hopes to establish its own retail central bank digital currency (CBDC) in order to demonstrate its importance in the future of the global economy.
The National Bank of Rwanda claims that the CBDC would be a safe and practical substitute for cash, which might encourage more people to use the banking system.
The deputy governor of Rwanda’s central bank, Soraya Hakuziyaremenye, discussed plans for a digital currency and its advantages for citizens in a recent interview with The New Times.
She emphasized that a number of African countries, including South Africa, Ghana, and Nigeria, are already testing or introducing their own digital currencies. In order to examine these models and investigate a Rwandan CBDC, she said, the central bank of Rwanda has been working with the finance ministry and technology since 2022.
Rwanda’s Central Bank Prioritizes Risk Assessment for CBDC
Their study made clear how crucial it is to comprehend both the technology and possible hazards associated with issuing digital currency.
She clarified that a CBDC would help Rwanda achieve its objective of a cashless economy by promoting innovation and competition in payment systems. It would also make international transactions more efficient. The central bank intends to approach the CBDC gradually and will wait for government approval before acting.
The success of the CBDC depends on public adoption, the official underlined. The bank must clearly benefit Rwandan citizens before launching a digital currency for the sake of doing so.
Rwanda’s CBDC Pilot to Test Technology and Design in a Controlled Setting
There are still four weeks left for Rwandans to take part in the public debate surrounding the CBDC. The central bank will then proceed with a pilot test to determine its viability.
The governor stated, “That will allow us to test the technology, the design, and the speed on a small scale,” “But there is also an aspect of cases where we want to test the technology in other countries, particularly in cross-border payments, this exercise will roughly take six months.”
A limited number of users and companies will participate in the pilot test. The central bank will be able to assess the technology’s efficacy, resilience, and smoothness in handling possible risks as a result.