Rwanda's National Bank Explores the Digital Currency Realm by Initiating Focused Central Bank Digital Currency Trials
Rwanda's Central Bank Digital Currency (CBDC) Pilot Begins
Rwanda's Central Bank, the National Bank of Rwanda (BNR), has initiated a five-month closed-loop proof-of-concept phase for the exploration of a Central Bank Digital Currency (CBDC). This digital version of the Rwandan franc, known as e-Franc-Rwandais, is set to revolutionise the country's payment system.
The pilot project is focused on understanding the user experience, technical feasibility, and potential risks associated with the CBDC. It involves a limited group of participants, including staff from both the central and commercial banks, merchants trialing offline payments, and institutions testing USSD features for feature phones.
The motivation for this venture includes modernising the payment system, promoting innovation and market competition, strengthening payment resilience during network or power outages, and improving the efficiency of cross-border payments. The CBDC is intended to expand financial inclusion by enabling digital payments accessible even via feature phones and facilitating offline transactions.
Rwanda aims to ensure that the CBDC is backed 1:1 by the Rwandan franc, ensuring no volatility or speculation, and guaranteeing merchant acceptance and legal tender status. This initiative marks a significant milestone in Rwanda's digital finance journey, positioning the country as a regional leader in inclusive and tech-driven financial systems.
The CBDC is designed to serve as a complement to existing payment options such as mobile money and bank cards. It offers 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 findings from the current phase will guide further evaluations and determine whether broader live pilots should be initiated. Areas under examination during the proof-of-concept phase include cybersecurity, legal frameworks, and the integration of CBDC into Rwanda's existing payment infrastructure.
Accelerating progress toward a cashless economy is another core motivation driving the CBDC exploration. The successful stages of the pilot could lead to broader adoption, promoting a more cashless economy, financial inclusion, and enhanced payment efficiency.
The BNR launched a retail CBDC ideathon on August 1, 2025, to gather ideas from individuals, fintechs, and startups to shape the future of the digital currency. This initiative is conducted in collaboration with Giesecke+Devrient, a German digital security firm, and is part of a five-stage development plan aligned with International Monetary Fund (IMF) guidance.
[1] Source: National Bank of Rwanda (BNR) press release, August 1, 2025.
- In the context of the CBDC pilot, the National Bank of Rwanda (BNR) is evaluating cybersecurity as a crucial consideration for the digital currency's successful implementation.
- To ensure seamless integration, the CBDC is being designed to complement existing payment infrastructures, such as mobile money and bank cards, in Rwanda.
- The exploration of a CBDC in Rwanda aims to strengthen the country's cybersecurity, given the increased reliance on technology and mobile banking in the modernized payment system.
- As part of Rwanda's digital finance journey, the CBDC pilot aims to expand financial inclusion by permitting digital payments through feature phones and facilitating offline transactions, improving accessibility in rural areas.
