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

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Rwanda May Not Reach Decision on CBDC Issuance Until End of 2022 – According to the bank’s deputy governor, the Rwandan central bank may not know whether it can issue a digital currency until December 2022, when it completes a research that examines the hazards and benefits associated with such a currency.

Rwanda’s deputy governor, Soraya Hakuziyaremye, has announced that the central bank’s examination into central bank digital currency (CBDC) is expected to be completed by the end of the year.

According to Hakuziyaremye’s statements in The New Times, the decision to issue or not issue a CBDC will be dependent on the findings of the research study being done by the National Bank of Rwanda (NBR).

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“Right now, we are in the middle of an inquiry.” We are really looking into the potential importance of CBDC for Rwandans, as well as the risks to our economy, depending on the type of digital currency we issue,” Hakuziyaremye explained.

According to a report from June 2021, the Rwandan central bank had begun a study on the potential effects of a CBDC on monetary and financial stability. The investigation would also look at “the operationalization model,” according to the article.

By launching the research project, the NBR became one of the very few central banks in Africa to express its intention to accept digital currencies. Only Nigeria’s Central Bank, however, has introduced its digital currency thus far.

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Meanwhile, the deputy governor pointed out that if Rwanda goes ahead with the introduction of a digital currency, any CBDC must result in fewer people being financially excluded. She continued, saying:

“What’s vital is to think about financial inclusion because issuing a digital currency shouldn’t exclude your population; it’s about reducing the digital divide and making sure that people can use it.”

The chairperson of Rwanda Fintech Network, Olivier Mugabonake, is quoted in the article discussing the potential benefits of CBDC to the local economy. “Technically, some organizations are ready to begin implementing the technology,” he said. I understand that the regulator must do a thorough examination and verify that it is executed safely.”

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