by The National Bank of Rwanda has officially advanced to the proof-of-concept (PoC) stage for its Central Bank Digital Currency (CBDC). This marks a key milestone in Rwanda’s digital currency journey. The announcement confirms the country’s commitment to innovation and financial inclusion by embracing digital cash issued by the central bank. The Rwanda CBDC testing now enters a focused phase to explore the technology, its design, and practical applications.
Focus on Safe, Convenient Digital Cash
The Rwanda CBDC testing aims to provide a safe and convenient digital cash alternative that complements existing mobile money and card payments. Unlike cryptocurrencies, this CBDC represents a legal tender fully backed by the central bank. The PoC stage will involve limited closed-loop testing with a select group of users.
This includes staff from central and commercial banks, merchants testing offline payments, and institutions experimenting with payment features such as USSD. The tests, which ran for about five months, focused on legal frameworks, cybersecurity, payment integration, and user experience.
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Promoting Financial Inclusion Through Rwanda CBDC Testing
Rwanda’s CBDC testing also targets financial inclusion by offering accessible payment solutions, especially in rural areas that face network outages or power cuts. The central bank aims to bring unbanked populations closer to the formal economy and push the country toward a cashless society. It is considering retail CBDCs that can work offline, ensuring broad usability even without constant internet access.
The PoC phase follows a thorough feasibility study conducted by the central bank in collaboration with the Ministry of Finance, ICT, and Innovation. The study revealed multiple opportunities, ranging from promoting innovation to enhancing financial system resilience. Public consultations addressed potential concerns regarding data privacy, financial stability, and the impact of monetary policy on the CBDC’s future development.
Rwanda Joins Global Wave of CBDC Innovation
By officially entering the Rwanda CBDC testing proof-of-concept stage, the National Bank of Rwanda signals a clear ambition. It underscores the importance of exploring modern digital payment infrastructures in line with global trends, where many African countries like Nigeria, Ghana, and South Africa are already piloting or using CBDCs.
Importantly, the CBDC will not replace credit cards or mobile money but will complement them by providing an additional payment option that carries the full trust and legal backing of the central bank.
The National Bank of Rwanda remains cautious, using the PoC phase to ensure security, efficiency, and regulatory clarity before any live pilot or full launch. This measured approach will address risks while building public confidence. The Rwanda CBDC testing program is a crucial step in the country’s economic modernization and digital transformation.
