The National Bank of Rwanda (NBR) has reiterated that using the local currency, the Rwandan franc (FRW), for cryptocurrency transactions remains illegal. This statement follows Bybit's announcement on Friday regarding the launch of its peer-to-peer platform supporting the FRW for buying and selling crypto. On Sunday, the NBR emphasized the risks associated with crypto, advising the public to refrain from engaging in such activities due to potential financial losses and lack of recourse.
The central bank further clarified that the FRW continues to be the sole legal tender in Rwanda. Furthermore, it prohibited licensed financial institutions from converting the FRW into cryptocurrencies. This stance aligns with Rwanda's ongoing efforts to enhance the currency's stability through the development of a central bank digital currency, the e-franc rwandais, which is currently undergoing proof-of-concept testing.
Efforts to regulate cryptocurrencies have been underway since 2018, and the draft framework released by the Capital Market Authority in March aims to restrict crypto as legal tender. The proposed legislation also seeks to ban crypto mining and related services while offering a licensing pathway for compliant crypto providers.
Rwanda's low ranking in crypto adoption, as reported by blockchain analytics firm Chainalysis, reflects a cautious approach compared to other African nations, with local adoption levels significantly trailing behind countries like Nigeria and South Africa.