The National Bank of Rwanda Governor, John Rwangombwa, announced that plans are in motion to create a central bank digital currency (CBDC), following a study indicating the necessity of such a currency in Rwanda.
Rwangombwa revealed the information to a joint plenary session of Parliament on November 27, during which he was presenting the central bank’s annual report for the fiscal year 2022–2023.
During the parliamentary session, Member Pie Nizeyimana expressed interest in learning about the status of the study being conducted under the direction of the central bank to examine the benefits and potential applications of digital currency in Rwanda.
On CBDC, we completed the first study to see whether it is necessary to set up the digital currency. The study indicated that it is relevant, it can be done, and it is necessary.
After that, we will do a trial on how that can be implemented, and which technology we can use. It is an ongoing process that can take about two years before we issue a CBDC for use.
John Rwangombwa, Governor National Bank of Rwanda
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He said the bank had discussed the idea of such a currency with financial institutions and other government agencies, and had given the government a report on the subject for cabinet deliberation before bringing the topic to the public.
Meanwhile, he noted, the country would also be able to draw upon research projects from other international organizations that have already made progress in this area.
Early in 2022, Soraya Hakuziyaremye, the deputy governor of the National Bank of Rwanda, declared that before the end of the year, it would be clear how Rwanda felt about the adoption of digital currency. She stated that it was anticipated that the nation would have completed studies to determine whether or not to issue the CBDC by the end of December 2022.
In 2022, a survey on digital currencies and cryptocurrency by the Bank for International Settlements (BIS) revealed that 93% of central banks polled were involved in CBDC activities, with over half conducting real tests or working on pilot projects. Central Bank Digital Currency Rwanda
