Rwanda is seeking ways to boost its economy, and the country is turning to cryptocurrency. The Rwanda Central Bank is studying the development of cryptocurrency in a bid to create its own. The country aims to learn from the blockchain research of the central banks of countries such as Canada, Singapore, and the Netherlands.
Peace Masozera Uwase, the Financial Stability Director-General of The National Bank of Rwanda (NBR) revealed that the bank is studying the research of other Central banks. Central banks such as the De Nederlandsche Bank (DNB), the Monetary Authority of Singapore, and Royal Bank of Canada have researched the use cases of the blockchain. Rwanda aims to study the search of these countries in a bid to create its digital currency, improve transaction in the country, and improve the country’s economy.
One of the issues the National Bank of Rwanda is faced with at the moment resolves around conversion. According to Peace Masozera Uwase, “There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions.” He also adds that the country is taking its time before joining in on the crypto bandwagon. He explains, “Challenges come in if the technology is down how do you deal with such issues? “We will join in once we are ready.” The interest of Rwanda in digital currencies is coming just three months after the country’s central bank raised an alert on cryptocurrency scams and ways to avoid them.
Rwanda is not the only country interested in creating a national digital currency. As it is, more countries in the world are beginning to show interest, with China being the most recent country. Earlier this month, China revealed that it had an interest in creating its digital currency. China even aims to launch its digital currency before the launch of Facebook’s Libra.