The National Bank of Rwanda is reportedly considering the development and launch of a state-backed cryptocurrency.
Rwandan Digital Currency
According to a report published by Bloomberg on August 22nd, the central bank is looking into the feasibility of launching a cryptocurrency that would make processing transactions more efficient. It will also boost economic growth.
The report claims that the National Bank intends to learn from the experience of Canada, Singapore and the Netherlands and other countries that have tested the use of blockchain technology backing a central bank digital currency.
Peace Masozera Uwase, Financial Stability Director-General in an interview with Bloomberg said:
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.
This comes just weeks after it was reported that China’s central bank digital currency is set for launch.