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Rwanda’s National Bank is looking into possibilities of a digital currency

More research is underway for Rwanda.

Bitcoin Price

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The National Bank of Rwanda is looking into the possibility of establishing their digital currency. The studies are being conducted on existing experiences from central banks from Canada, Singapore and the Netherlands.

Peace Masozera Uwase: “We will join once we are ready”

These three countries have already started dabbling with the possibility of their digital currency. According to BNN Bloomberg, the Financial Stability Director-General Peace Masozera Uwase stated:

“There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions. Challenges come in if the technology is down how do you deal with such issues? We will join in once we are ready.”

Financial Stability Director-General Peace Masozera Uwase

Rwanda: The case of fraud is also an issue

Rwanda is planning on fully undertaking the experiences of these countries, and to learn as much as possible before stepping out and establishing their digital currency. According to Uwase, the biggest concern will be how they will convert the national currency into something digital. He also faces concerns regarding the pace in which the transactions can be implemented.

These issues are concerning as Bitcoin transactions can take a bit of time to be completed. This is a hindrance that the central bank wants to avoid completely as it moves its plan forward. The case of fraud is also alarming, and presents itself as a potential threat. If the new currency is launched, citizens will constantly need to be updated about scams and avoid being victims of crypto-scammers.

More countries are testing the implementation of a digital currency

In a recent report; by the International Monetary Fund (IMF), the firm believes that central banks may issue digital currencies across the world in the future. This report further proves that Uruguay has launched a pilot program. These countries are also reported the be testing the possibilities of digital currency:

  • The Bahamas
  • China
  • Eastern Caribbean
  • Sweden
  • Ukraine

China continues to lead the world

According to the Cointelegraph, China is racing to launch its digital currency, before Facebook’s planned crypto-currency Libra. This comes after five years of research and system development through the Chinese government.

“Trials for the currency have been ongoing and the institution is reported to be testing multiple approaches for the project. If things proceed smoothly, the People’s Bank of China expects it could launch the currency sooner than Libra.”

Cointelegraph

It is alleged that Facebook’s Libra had ignited a debate among Chinese regulators and pushed the project’s designers to include more non-government institutions in the currency’s development. The current system tests were being regulated and supported by the government.