The concept of digital currencies has intrigued financial institutions globally, making it only a little surprising that officials in the African nation, Rwanda is also looking into the possibility of deploying one.
According to BNNBloomberg, the National Bank of Rwanda (NBR) is researching the possible issuance of digital currency, drawing insight from similar studies by countries such as Canada and Singapore.
Central banking authorities in the regions mentioned above have already made progress on the application of blockchain technology, making them good examples for Rwanda’s research according to NBR Financial Stability Director-General Peace Masozera Uwase.
While commenting on the specific areas where the NBR is trying to wrap their heads around digital currencies, Uwase stated that they had difficulties figuring out how exactly to convert the entire [national] currency into digital form, as well how to distribute and process those transactions faster.
He also questioned the ability of a central bank-backed digital currency (CBDC) to deal with downtime, saying,
“Challenges come in. If technology is down, how do you deal with such issues? Conclusively, Uwase reportedly said that the NBR would join in the CBDC race once they are “ready.”
Meanwhile, the latest talk of a possible digital currency issuance by the National Bank of Rwanda, means there are now at least two countries in Africa where central banking authorities are hinting of a move in that direction.
In May, Stmarket.co reported that the South Africa Reserve Bank (SARB) held a meeting to deliberate on the possibilities of digital currency. In attendance at the meeting where prospective solution providers who shared ideas on how South Africa can birth its CBDC.