Rwanda’s Central Bank might be the first African Central bank to consider the issuance and implementation of its own digital currency in the African economy. With the digital currency, the banks aims at making transactions more efficient and convenient and contributing to economic growth.
According to a report by Bloomberg, the National Bank of Rwanda is studying the experiences of other reputed national banks, specifically the Royal Bank of Canada, De Nederlandsche Bank (DNB), and the Monetary Authority of Singapore.
If this stage of knowledge acquisition about cryptocurrency proves productive, Rwanda might eventually issue a cryptocurrency, perhaps similar to the one that is underway in China. The currency, if launched, will make Rwanda among the pioneers of digital transformation in Africa and might eventually inspire other African countries to create similar products.
Why Rwanda Is Taking The Blockchain Turn
According toFinancial stability Director-General Peace Masozera Uwase,
“There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions.”
“Challenges come in if the technology is down how do you deal with such issues? “We will join in once we are ready.” Uwase told Bloomberg.
Rwanda is an African country with a central bank that’s technologically inclined and takes considerable measures to ensure the financial safety of the citizens. Earlier this year, in May, the National Bank of Rwanda alerted the public (citizens) about Ponzi schemes, some of which involved cryptocurrencies. In the statement released by the central bank, investors were warned against indiscriminate investments and advised to take protective measures against scam investment schemes.