Uganda launches CBDC pilot as Kenya’s crypto bill passes final hurdle

Uganda has commenced a pilot for its central bank digital currency (CBDC), which is part of a tokenization initiative aimed at enhancing various sectors in the country. The pilot, developed in collaboration with the Global Settlement Network and Diacente Group, features a digital version of the Ugandan Shilling that is backed by treasury bonds and complies with Know Your Customer and Anti-Money Laundering standards. Meanwhile, Kenya's Virtual Asset Service Providers (VASP) Bill has successfully passed parliament and is awaiting President William Ruto's signature to become law. This bill establishes a regulatory framework for the crypto industry, including consumer protections and oversight by the Central Bank of Kenya. As the crypto sector expands in Africa, projections indicate that over 75 million users will engage with crypto by 2026, with substantial revenue expected from the space. Uganda is the latest in a series of African nations piloting CBDCs or exploring their implementation.

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