Rwanda May Not Reach Decision on CBDC Issuance Until End of 2022 — Central Bank Official – Fintech Bitcoin News

The Rwandan central bank may not know whether it can issue a digital currency until December 2022, when it completes a study that looks at the benefits and risks that come with such a currency, the bank’s deputy governor has said.

Phase 1: The Investigation

The deputy governor of the Rwandan central bank, Soraya Hakuziyaremye, recently suggested that Rwanda is likely to know the outcome of the bank’s investigation into central bank digital currencies (CBDC) by the end of the year.

Hakuziyaremye, in remarks to The New Times, stated that the National Bank of Rwanda (NBR), will decide whether or not it issues a CBDC.

“We are now at an investigation phase. We are analysing what could be the benefits to Rwandans to have CBDC but also the risk not only to our economy but the sector depending on the form of digital currency we would issue,” Hakuziyaremye explained.

Bitcoin.com News reported that the Rwandan central banking had initiated a research project to examine the implications of CBDC for financial and monetary stability. In addition, the report said the study would also look at “the operationalization model.”

NBR was the only African bank that launched the research study to indicate its willingness to accept digital currencies. But, the Central Bank of Nigeria is yet to launch its digital currency.

CBDCs & Financial Inclusion

The deputy governor stated that the launch of digital currencies in Rwanda would require that the CBDC reduce financial poverty. She said:

“What is important is to look at financial inclusion because if you issue a digital currency, you shouldn’t be excluding your population, it has to go with closing the digital divide and making sure that people have the option to use it.”

In the report, Olivier Mugabonake is the chairman of Rwanda Fintech Network. He discusses the potential benefits that CBDC may bring to the country’s economy. He said: “Technically speaking, there are some companies which are ready to start adopting the technology. I understand the regulator needs to assess wisely and make sure it is adopted in a secured manner.”

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Terence Zimwara

Terence Zimwara was a Zimbabwe Award-winning journalist and author. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.