Uganda introduces a blockchain-based digital shilling backed by treasury bonds, while Kenya’s Virtual Asset Bill awaits presidential approval — signaling Africa’s accelerating embrace of digital finance.
Africa’s Growing Digital Currency Momentum
Uganda has officially launched a central bank digital currency (CBDC) pilot, marking a significant step in the country’s digital transformation. The project, developed by the Global Settlement Network (GSN) in partnership with the Diacente Group, aims to tokenize $5.5 billion in real-world assets, including infrastructure, mining, and renewable energy projects.
The digital Ugandan shilling operates on a permissioned blockchain and is backed by Ugandan treasury bonds, ensuring stability and government support. It is designed to be accessible via smartphones, making it compatible with Uganda’s growing mobile economy.
According to Diacente Group chairman Edgar Agaba, the initiative is about unlocking long-term value.
“By integrating tokenization and CBDCs into Uganda’s development roadmap, we’re creating transparent, tech-driven ecosystems that attract new capital, empower local industries, and scale sustainable growth from the ground up,” Agaba said.
Compliance and Financial Innovation
The Ugandan CBDC adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, aligning with international financial standards. Experts say this compliance is crucial to fostering investor confidence and preventing misuse of digital assets.
Analysts point out that Uganda joins a growing list of African nations exploring digital currencies — following Nigeria’s eNaira and Ghana’s e-Cedi pilots. Countries such as Rwanda, Egypt, and South Africa are also progressing toward similar initiatives, indicating that Africa is rapidly positioning itself as a frontier for digital finance innovation.
Kenya’s Crypto Bill Crosses Final Hurdle
Meanwhile, neighboring Kenya’s Virtual Asset Service Providers (VASP) Bill has passed through parliament’s third reading and now awaits President William Ruto’s signature. The legislation establishes licensing frameworks, investor protections, and anti-fraud measures, giving the Central Bank of Kenya and the Capital Markets Authority oversight powers.
The bill also enforces AML/KYC compliance, setting standards aligned with the Financial Action Task Force (FATF).
According to Statista, the continent could see over 75 million crypto users by 2026, with revenues projected to surpass $5.1 billion. Blockchain firm Chainalysis reports that stablecoins account for 43% of Sub-Saharan Africa’s total transaction volume — highlighting the region’s growing reliance on digital assets for cross-border payments and economic inclusion.
Africa’s embrace of tokenization, CBDCs, and crypto regulation marks a pivotal shift toward a more inclusive and transparent financial future.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.