Crypto has come very far from its days of being a novel internet concept and has proved itself across the globe. This has led to it being developed by some of the biggest firms in the world as well as gaining users who number in the millions of people. Along with this, many world governments have seen the benefits of making use of digital currencies and have applied them to certain regions or to the country itself. This includes Venezuela, who launched their own petro currency in 2018 following massive hyperinflation in the country as well as certain regions and countries like South Korea who have launched their own token.
Now it seems Rwanda is the latest in this club as it was reported on August 22, 2019, that the Rwandan Central Bank, the National Bank of Rwanda, is looking into an official digital currency for the nation. Should these rumors be true, Rwanda could become the first African country to launch its own national cryptocurrency.
Crypto coming to Rwanda
According to the report, the Central Bank is interested in the idea of a cryptocurrency as a means to increase the efficiency of transactions in the country and also to foster economic growth. This is in line with some of the benefits of cryptocurrency as crypto is known for being easier and faster to send them fiat currency and this has been applied in many parts of the world such as the Middle East. However, according to their financial stability director-general Peace Masozera Uwase, a lot of work still needs to be done on the project before it could possibly be implemented.
“There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions […] Challenges come in, if technology is down how do you deal with such issues? We will join in once we are ready,” Uwase said.
While the work to develop the token is still ongoing, Uwase has stated that the National Bank of Rwanda will look to other central banks across the world who have attempted to create a national digital currency and learn from them. These countries include the Netherlands, Singapore, and Canada. It should also be noted that China has been reported to be closing in on the launch of their own digital currency after a five-year development and this is believed to be spurred on by the Libra token which has brought crypto to the forefront of international finance.