Rwanda Central Bank Begins Digital Currency Test Phase
The National Bank of Rwanda (BNR) has officially launched the pilot phase of a digital currency experiment, known as the Central Bank Digital Currency (CBDC). This important step follows over a year of in-depth research aimed at understanding how digital currency can benefit Rwanda’s economy and citizens.
Research Based on Global Guidelines
The research was guided by the International Monetary Fund’s (IMF) recommended framework, known as the ‘5Ps Methodology’. This method helps central banks around the world evaluate if a digital currency would work in their countries.
In 2023, BNR partnered with Access to Finance Rwanda (AFR) to conduct a study. The goal was to understand both the opportunities and risks of introducing a national digital currency. The findings offered clear insights into what CBDC is, how it might be developed, and how it could be integrated with Rwanda’s financial systems.
What the Pilot Project Will Do
Following the preparation phase, the bank has now entered the proof-of-concept stage. This part will help assess whether a digital currency can work well in real-life situations, such as everyday purchases, business transactions, and financial services.
BNR said the test will explore several important points:
- Can a digital currency work smoothly with Rwanda’s current financial technologies?
- Will it be safe and secure for people to use?
- Can it lower transaction costs and improve financial inclusion for citizens who don’t use traditional banks?
This trial does not yet mean that Rwanda is officially launching a CBDC. It is a learning phase, meant to gather more information before making a final decision.
Why This Matters for Rwanda
A well-designed digital currency could support faster payments, better transparency, and lower financial service costs. It could also help reduce reliance on physical cash, which is more expensive to produce and manage.
For a country like Rwanda, which is working to digitize its economy and increase financial inclusion, this test is an important milestone.
As stated by BNR, the test will consider how useful and accessible the digital currency would be for both businesses and everyday citizens. The bank is especially focused on security, affordability, and ease of use.
Ongoing Partnerships and Next Steps
BNR is not working alone. The bank will continue to collaborate with stakeholders in the financial, tech, and public sectors to make sure the pilot phase is effective and informative. Input from these partners—and from the Rwandan public—will shape whether the CBDC will be rolled out on a larger scale.
The central bank confirmed that this testing process will continue in stages. After this initial proof-of-concept, the next phases could involve broader testing before any final rollout decision.
You can read more about Central Bank Digital Currencies on the IMF official website and follow updates on Rwanda’s fintech development through Access to Finance Rwanda.
