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The National Bank of Rwanda takes a strong stance. It has just reaffirmed its total ban on crypto activities using the Rwandan franc. This comes right after Bybit added support for this currency on its P2P market last Sunday.
The central bank issued a clear statement: crypto-assets remain prohibited for payments or conversions with the franc. It warns against major financial risks and the complete lack of legal protection if people lose their money. “Citizens who engage in these activities do so at their own risk,” reads the official statement released Monday morning.
Bybit has not responded.
On Friday, the crypto exchange announced that its users could now trade digital assets using the Rwandan franc on its peer-to-peer platform. But Bybit never confirmed whether it had obtained approval from local regulators before launching this service. Contacted for comments, Bybit has yet to publicly respond to the central bank’s announcement. Not very reassuring for local traders who were counting on this new feature.
Rwandan Franc Sole Legal Currency
Rwandan regulators have made it clear: the Rwandan franc remains the only legal currency in the country. Period. Financial institutions under the supervision of the central bank have been strictly ordered not to facilitate conversions between the franc and crypto-assets. The goal? To limit risks to the domestic financial system, which remains fragile according to local experts.
John Rwangombwa, Governor of the National Bank of Rwanda, had already expressed his concerns in March during a conference in Kigali. He fears the increase of international platforms trying to expand their services in the country without adhering to local rules. “We see too many platforms coming in and operating without authorization,” he said at the time.
The e-Franc in Development
But Rwanda is not against financial innovation. The country is working on its own state digital currency, the e-franc, currently in the proof-of-concept phase. This project aims to modernize the payment infrastructure while maintaining full control over monetary policy. A pilot phase is planned for next year, according to sources close to the matter. Market observers have noted parallels with Bitcoin hitting $110,000 in recent weeks.
Meanwhile, the Rwanda Capital Market Authority has proposed a regulatory framework for virtual asset service providers. The project introduces a licensing regime to oversee crypto activities while imposing strict limits on their use. The penalties are severe: fines of up to 100 million Rwandan francs and a ban on operations.
The authorities hope this approach will push platforms to seek legal compliance rather than operate in the shadows. “We want transparency, not makeshift solutions,” according to a capital market authority official who preferred to remain anonymous.
Rwanda maintains very low crypto adoption compared to Nigeria or South Africa. Transaction volumes remain modest, which limits potential systemic risks for now. However, authorities maintain strict oversight in the face of the global expansion of crypto platforms increasingly targeting African markets.
The central bank also emphasized the importance of raising public awareness about the dangers of cryptos. Several people have fallen victim to fraud and significant financial losses due to reckless investments in unregulated digital assets. Exact figures have not been disclosed, but cases are multiplying according to authorities.
Rwangombwa insists on the need for enhanced cooperation with international authorities to better monitor these cross-border activities. Rwanda is already participating in several regional working groups on digital asset regulation. Market observers have noted parallels with South Korea cracking down in recent weeks.
Discussions on the final regulatory framework for crypto-assets continue. Public consultations could be organized to gather feedback from stakeholders, including local banks. The goal remains to ensure that the final legislation is suited to the country’s needs while protecting Rwandan consumers from the risks associated with unregulated cryptos.
What is the Rwandan e-franc?
The e-franc is a state digital currency in development in Rwanda, currently in the proof-of-concept phase with a pilot phase planned soon. Market participants tracking Federal Court Backs Kalshi Against New will find additional context here.
The East African Community has also expressed similar concerns about unauthorized crypto platforms operating in the region. Tanzania and Uganda have recently toughened their positions, creating a united front with Rwanda against international exchanges that ignore local regulations. Industry observers have noted parallels with Bitcoin Hits 0K After Strategy Buys in recent weeks.
Bybit has over 30 million users worldwide and has expanded its P2P services to more than 75 fiat currencies this year. Adding the Rwandan franc was part of its African expansion strategy, but the swift reaction from local authorities could compromise its plans. Other platforms like Binance are closely watching this situation before offering similar services in the region.
Frequently Asked Questions
What exactly does the Bank of Rwanda say about cryptos?
The central bank maintains that crypto-assets are not authorized for payments or conversions involving the Rwandan franc, with no legal protection in case of loss.
