The National Bank of Rwanda (BNR) is looking to engage the public for feedback on the idea of issuing a digital currency (CBDC) accessible to all Rwandese. With this innovative CBDC, a cashless experience would be entirely different from what digital payment options bring today, seamlessly enabling transfers even offline using Bluetooth or Near Field Communication (NFC) and without the need for a smartphone.
The Central Bank of Rwanda would like to construct CBDC in a way that matches the parameters of the country. Thus, it has become a tool in its mission to bring down the barrier to electronic payments, which has been prevalently disruptive with frequent power outages.
The proposed CBDC would be “token-based” unlike traditional “account-based” money, which would use digital tokens representing Rwandan francs. Although the BNR admits that this way of designing a currency can also bring up some privacy and security issues, there are opportunities for the usage of blockchain technology in this context.
The FAQ section says that “
The consultation wants public opinions on the Rwanda CBDC. This helps the
bank understand technology, regulations, and risks, as this new digital money
will change how we use money.”
This Rwandan CBDC proposal is ambitious, especially with the offline transfer among Rwandans functionality included. It would be exciting to find out how the project proceeds and what features other countries may incorporate into their own digital currencies.
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