The National Bank of Rwanda (NBR) has reiterated that cryptocurrency transactions using the Rwandan franc (FRW) are illegal, following Bybit’s announcement of support for the currency on its peer-to-peer platform. The NBR emphasized that crypto-assets are not authorized for payments or trading involving the FRW, warning citizens of significant financial risks and the lack of recourse in case of losses. This statement underscores Rwanda’s ongoing efforts to maintain strict control over its financial system and monetary sovereignty.
The central bank’s firm stance comes as Rwanda is developing its own central bank digital currency, the e-franc rwandais, currently in the proof-of-concept stage. The country has historically restricted crypto usage since 2018 and is now working on a regulatory framework that aims to prohibit crypto as legal tender while allowing licensed operations for virtual asset service providers.
For market professionals, the NBR’s position signals a continued aversion to cryptocurrency, which could limit investment opportunities in the region and affect the operations of platforms like Bybit. The regulatory landscape in Rwanda may evolve, but the current restrictions could deter crypto adoption and investment in the local market.
Source: cointelegraph.com