CBDC | ‘We Have Officially Advanced From Research to a Proof-of-Concept for a CBDC,’ Says National Bank of Rwanda

The National Bank of Rwanda (BNR), which is the Central Bank of Rwanda, is currently exploring real-world use cases and technical feasibility for a Rwandan Central Bank Digital Currency (CBDC) – a digital equivalent of the Rwandan Franc.

The retail CBDC is not expected to replace existing payment methods like cash, cards, and electronic payments but simply a payment option.

This latest development was announced by the apex following this announcement:

“The PoC aims to test foundational design features as suggested by the research phase, legal, cybersecurity and payment system implication. The Proof of concept will inform the decisions for further live pilots or a differentiated stance.

This hands-on phase puts theory to the test, exploring real-world use cases and technical feasibility to shape the future of digital currency in Rwanda.”

This latest update comes one year after the apex bank outlined plans for a CBDC within two years as part of the country’s broader efforts to modernize its financial system and establish itself as a significant participant in the evolving global economy.

Proof-of-Concept Stage & Ideathon

In August 2025, BNR launched a retail CBDC ideathon, calling on fintechs, startups, innovators, and the public to help shape the digital currency’s design and future use cases. Concurrently, the bank has initiated a closed-loop proof-of-concept (PoC) with a select group of participants – commercial bank staff, merchants, and institutions – to test essential features such as offline payments, USSD access for feature phones, cybersecurity, and the legal framework. This phase is scheduled to run for five months, with results expected by October 2025.

Four Strategic “Sweet Spots”

BNR zeroed in on four key benefits of pursuing a CBDC:

• Resilience During Network or Power Disruptions

Offline-enabled CBDC transactions could maintain financial access during blackouts or connectivity issues—particularly important in rural areas.

• Stimulating Innovation and Competition

With mobile money currently dominated by a duopoly, a CBDC could lower transaction costs and encourage new players to enter the market.

• Reducing Cash Handling Costs

As cash circulation grows, so do costs related to printing, storage, and handling. A digital alternative could help cut these expenses.

• Faster, Cheaper, More Transparent Remittances

Particularly for regional corridors like Tanzania–Rwanda, a retail CBDC could significantly reduce remittance fees and processing times, while enhancing transparency.

BNR emphasizes that the CBDC would complement rather than replace cash or existing digital systems, offering an additional layer of accessible and inclusive payment options. Unlike cryptocurrencies, a CBDC is legal tender-backed and regulated by the central bank – and designed to be stable, non‑speculative, and widely accepted.

BitKE highlighted that BNR began its feasibility study as early as March 2022, involving economic, legal, functional, and financial assessments of a potential retail CBDC.

The public was invited to provide feedback via a questionnaire sometime in mid-2024, underscoring BNR’s intent to weigh public acceptance carefully before advancing. The analysis covered economic, functional, legal, and financial aspects, identifying key challenges in Rwanda’s financial Sector and payment systems. This study also assesses possible opportunities for a CBDC and other alternatives, laying a solid foundation for Rwanda’s future digital financial landscape.

As reported by BitKE in 2024, the feasibility study reaffirmed the four core benefits:

• Resilience
• Innovation
• Cashless support, and
• Remittance efficiency

but also advised proceeding cautiously with phased validations (PoC and pilots).

As Rwanda progresses toward a potential 2026 roll-out, this structured and consultative approach – rooted in research, PoC testing, public engagement, and technical collaboration – positions the country to navigate the complex landscape of CBDCs thoughtfully and responsibly.

Stay tuned to BitKE for deeper insights into the African CBDC space.

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