Central Bank of East African country Rwanda is considering issuing its own digital currency (CBDC). The regulator believes that digitalization will help to reduce the cost of transactions and accelerate the country's economic growth.
Rwanda’s Central Bank is exploring the possibilities of cryptocurrencies
As BNN Bloomberg reports, Rwanda's Financial Stability Director-General Masozera Uwase said in an interview that Rwanda’s central bank is about to take on the experience of Canada, Singapore, and the Netherlands, where regulators have already tested blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details technology.
According to him, there are quite a few concerns about the central banks' digital currencies (CBDC). In particular, the authorities do not understand how to digitize all the cash in circulation and pass it on to citizens. The speed of transactionTransaction
– is a financial term that means a logically meaningful operation that can only be carried out completely. Details processing also raises doubts.
Despite this, Uwase said the country would issue cryptocurrency when it would be "ready."
Interesting in the section: Financial geography. Cryptocurrencies on the African continent
- CBDC (Central Bank Digital Currency) is essentially a digitized national currency. Authorities from Canada, Singapore, the Netherlands, and even Ukraine have tested its issue using blockchain technology.
- The results were quite controversial. Regulators were most concerned about the low speed of transaction processing and the impact of the "national cryptocurrency" on monetary and financial systems.
- On August 20, the Central Bank of China said it would soon introduce its own CBDC. The regulator claims that blockchain and other technologies were used for its development. After all, the technology of distributed shared registers alone cannot provide the required speed of transaction processing.
Editor: Godfrid Brower