Rwanda Set to Launch Digital Currency by 2026

Rwanda has unveiled its ambitious plan to introduce its national digital currency, the “digital franc,” by 2026. The initiative, spearheaded by the National Bank of Rwanda (BNR), aims to offer a secure, accessible, and cost-effective alternative to physical cash, with a focus on driving financial inclusion and modernizing the country’s financial infrastructure.

Deputy Governor Soraya M. Hakuziyaremye highlighted the growing trend of central bank digital currencies (CBDCs) in Africa, underlining the necessity for Rwanda’s move in this direction. The project will kick off with a proof-of-concept phase to test technology, design, and transaction speed on a small scale, followed by a six-month international pilot focusing on cross-border payments. Subsequently, individuals and businesses will participate in testing before a broader rollout.

The Rwandan government’s interest in digital currencies stems from a desire to enhance financial services for its population, with a comprehensive feasibility study conducted in May 2024 laying the groundwork. This study identified numerous benefits, including resilience against disruptions, fostering innovation and competition, advancing the cashless economy initiative, and improving cross-border remittances’ efficiency and inclusivity.

As Rwanda proceeds with its digital currency plans, it positions itself as a leader in financial innovation in Africa, underscoring its commitment to leveraging technology for a modern, inclusive, and resilient financial system. Success in implementing a digital currency could pave the way for other African nations, showcasing the transformative potential of digital currencies in driving economic development across the continent.