Rwanda Central Bank Joins CBDC Bandwagon After Announcing Digital Currency Research

The National Bank of Rwanda (NBR) has become the latest African central bank to join the digital currency movement after an employee confirmed that the institution is working on options to issue its own digital currency. The effects of CBDC on financial stability According to collaborator John Karamuka, this study will look at the "operationalization model" as well as the economic, financial and technical aspects associated with central bank digital currencies (CBDC). The study also analyzes "the impact of CBDC on monetary policy and financial stability." However, in his comments to The New Times, Karamuka revealed that the study reveals the limitations or lack of global standards and reliable criteria on the subject. On the African continent, some countries such as Nigeria, Ghana, and Tanzania have recently either signaled plans to explore CBDCs or have made progress in the development of CBDCs. But only a few countries around the world, including smaller countries like the Bahamas and the Republic of the Marshall Islands, have seen CBDC projects make real progress. Meanwhile, Karamuka, director of payment systems at NBR, explains how his organization is trying to benchmark its own progress. He said: Still, we compare with more developed countries and learn from both positive and negative experiences. We benefit from the work of international organizations such as the International Monetary Fund, the World Bank and the World Economic Forum. The Need for CBDC The New Times report also featured the Rwandan crypto and blockchain community leader's response to the disclosures. Norbert Haguma, president of the Rwanda Blockchain Association, questions the need for a CBDC. “A CBDC must retain the best features of both cash and existing e-wallet solutions: cash can be exchanged offline with no restrictions or fees, while digital payments like mobile money allow for instant payments.

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