Rwandan Central Bank seeks to introduce digital currency

The Rwandan Central Bank is studying ways to boost its economic growth further by introducing its own digital currency.

One of the smallest yet fastest growing economies in the African mainland, Rwanda has enjoyed a substantial economic growth in recent years and pulled out at least a million citizens out of the poverty zone so far.

In its bid to further the development and drastically improve living standards for its population, the Rwandan Central Bank is planning to enhance transaction efficiency and nurture economic development through means of a digital currency.

Following the footsteps of Canada, Netherlands and Singapore, who have successfully tested blockchain’s applications in banking and Fintech, the National Bank of Rwanda is closely examining highlights and challenges concerning a national digital currency, reports BNN Bloomberg on Aug 22.

Rwandan Central Bank prepares for challenges lying ahead

Peace Uwase, Director General of the Financial Stability department of the Rwandan Central Bank, said in an interview in the capital city of Kigali, that the move to shift to a digital currency will only be made upon careful reviewing of its negatives and positives.

She points out that the biggest challenge lies in entirely shifting to a digital form of currency, implement its distribution, execution and use it in processing high-speed transactions. 

Technology has its limitations, however, Rwanda is keen to do what it takes to bring about a digital economy, she speaks with optimism.

Meanwhile, there are reports of other counties breaking new grounds for a digital economy. While Uruguay has already begun the testing phase of its central bank backed digital currency, Bahamas, Ukraine, China and Sweden are also going ahead full throttle on instigating their own tests.