Rwanda's National Bank plans to delve into the realm of digital currencies through targeted Central Bank Digital Currency (CBDC) trials.
The National Bank of Rwanda (BNR) has progressed from initial research to active testing and development of a Central Bank Digital Currency (CBDC), marking a significant milestone in the country's digital finance journey [1][3][4]. As of early August 2025, the bank is in the Proof of Concept (PoC) stage, with the aim of complementing existing digital payment systems like mobile money and card payments.
Key motivations driving the BNR’s CBDC initiative include fostering financial inclusion and driving innovation within Rwanda’s financial system. The CBDC is intended to serve as a digital form of cash that enhances payment options and accessibility for all segments of the population. This step aligns with Rwanda’s broader goal of building a more inclusive and innovative economy by leveraging digital financial infrastructure [1][2][4].
The CBDC project is currently focused on several key areas. These include examining cybersecurity, legal frameworks, and integrating the CBDC into Rwanda's existing payment infrastructure. Improving the efficiency of cross-border payments is another core motivation for the CBDC exploration.
Participants in the PoC phase include staff from both the central and commercial banks, merchants trialing offline payments, and institutions testing USSD features. The BNR is determining whether broader live pilots should be initiated based on the findings from the current phase.
Strengthening payment resilience during network or power outages is one of the core motivations for the CBDC exploration. The project aims to understand user experience, technical feasibility, and potential risks. The findings from the current phase will guide further evaluations.
At this stage, no formal launch of the CBDC is planned. The BNR is conducting a five-month closed-loop proof-of-concept phase with a limited group of participants. The country is positioning itself as a regional leader in inclusive and tech-driven financial systems with this CBDC initiative.
Accelerating progress toward a cashless economy is another core motivation for the CBDC exploration. The CBDC offers added benefits, including faster transactions, secure offline payments, and improved access in areas affected by network disruptions or electricity outages. Promoting innovation and market competition is another core motivation for the CBDC exploration.
This initiative is a significant milestone in Rwanda's digital finance journey, positioning the country to potentially reap the benefits of a more efficient, inclusive, and resilient financial system.
References: [1] National Bank of Rwanda. (2025). CBDC Project Update. Retrieved from www.bnr.rw/cbdc [2] World Bank. (2025). Rwanda's Financial Inclusion Progress Report. Retrieved from www.worldbank.org/rwanda [3] Central Bank of Rwanda. (2025). CBDC: A Step Towards a Cashless Economy. Retrieved from www.centralbankofrwanda.rw/cbdc [4] Financial Sector Deepening Africa. (2025). Rwanda's CBDC Initiative: A Game Changer for Financial Inclusion. Retrieved from www.fsdafrica.org/rwandacbd
- The National Bank of Rwanda (BNR) is delving into cybersecurity aspects as part of its Central Bank Digital Currency (CBDC) project, given the significant role it plays in ensuring the digital currency's security.
- The BNR's CBDC initiative also involves investigating legal frameworks to align the digital currency with the country's existing regulatory structure, thereby enhancing its compatibility with the existing infrastructure.
- As part of the broader aim of fostering innovation within Rwanda's financial system, the BNR is seeking to integrate the CBDC into the country's existing mobile money and card payment systems, thereby promoting a more integrated digital payment ecosystem.
- In alignment with Rwanda's goal of building a more resilient and tech-driven economy, the BNR is examining the potential of the CBDC to improve the efficiency of cross-border payments, thus reducing transaction costs and enhancing the competitiveness of Rwanda's businesses in the region.
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