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Rwanda has announced its ambitious plan to introduce a national digital currency, the “digital franc,” by 2026. This initiative, led by the National Bank of Rwanda (BNR), aims to provide a secure, accessible, and cost-effective alternative to physical cash, focusing on enhancing financial inclusion and modernizing the country’s financial infrastructure.
Deputy Governor Soraya M. Hakuziyaremye emphasized the increasing trend of central bank digital currencies (CBDCs) in Africa, highlighting the importance of Rwanda’s move in this direction. The project will begin with a proof-of-concept phase to test the technology, design, and transaction speed on a small scale. This will be followed by a six-month international pilot focusing on cross-border payments. Subsequently, individuals and businesses will participate in testing before a broader rollout.
The Rwandan government’s interest in digital currencies is driven by a desire to improve financial services for its population. A comprehensive feasibility study conducted in May 2024 laid the groundwork for this initiative. The study identified several benefits, including resilience against disruptions, fostering innovation and competition, advancing the cashless economy initiative, and improving the efficiency and inclusivity of cross-border remittances.
As Rwanda moves forward with its digital currency plans, it positions itself as a leader in financial innovation in Africa, demonstrating a commitment to leveraging technology for a modern, inclusive, and resilient financial system. Successfully implementing a digital currency could set a precedent for other African nations, showcasing the transformative potential of digital currencies in driving economic development across the continent.
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