Rwanda Central Bank Warns Against FRW-Based Crypto Trading

Rwanda's central bank, the National Bank of Rwanda (NBR), has issued a warning regarding the use of cryptocurrencies within the country. According to the NBR, using the Rwandan franc for cryptocurrency payments, conversions, or peer-to-peer trading is not authorized under current law.

The NBR emphasized that the Rwandan franc remains the sole legal tender in Rwanda and that licensed financial institutions are prohibited from converting it into crypto assets or vice versa. This stance aligns with a cautious regulatory environment that has accompanied Rwanda's broader efforts to regulate and supervise cryptocurrency-related activities.

Bybit, a global exchange, had recently announced the introduction of peer-to-peer trading for the Rwandan franc on its platform. However, this move appears to be at odds with the NBR's position. The clash highlights the tension between global crypto offerings and national regulators that have pressed to limit on- and off-ramp activity in local currencies.

Rwanda has been advancing a digital-money agenda alongside its fiat framework, including the development of an e-franc central bank digital currency (CBDC). The country's regulatory approach is not unique, as policymakers across Africa have sought to preserve monetary sovereignty while regulating crypto services more narrowly.