National Bank of Rwanda Eyes Digital Currency Future with Targeted CBDC Testing

The National Bank of Rwanda (BNR ) has confirmed that it is actively exploring the introduction of a Central Bank Digital Currency (CBDC) as part of its broader strategy to promote financial inclusion and digital innovation.

Described as a digital form of cash issued by the central bank, a CBDC would serve as a complement to existing payment options such as mobile money and bank cards. It would offer added benefits, including faster transactions, secure offline payments, and improved access in areas affected by network disruptions or electricity outages—especially in rural communities.

The Bank has begun conducting a five-month closed-loop proof-of-concept phase with a limited group of participants, including staff from both the central and commercial banks, merchants trialing offline payments, and institutions testing USSD features. The project focuses on understanding user experience, technical feasibility, and potential risks. Areas under examination include cybersecurity, legal frameworks, and the integration of CBDC into Rwanda’s existing payment infrastructure.

According to the BNR, four core motivations are driving the CBDC exploration:

• Strengthening payment resilience during network or power outages

• Promoting innovation and market competition

• Accelerating progress toward a cashless economy

• Improving the efficiency of cross-border payments

The pilot is expected to conclude in October 2025. However, the central bank clarified that no formal launch is planned at this stage. The findings from the current phase will guide further evaluations and determine whether broader live pilots should be initiated.

This initiative marks a significant milestone in Rwanda’s digital finance journey, as the country continues to position itself as a regional leader in inclusive and tech-driven financial systems.