The National Bank of Rwanda (BNR) wants to hear from the public about the concept of creating a digital currency (CBDC) that is available to all Rwandans. Cashless transactions would be completely different with this cutting-edge CBDC than they are with current digital payment solutions, which easily allow transfers even in the absence of a smartphone via Bluetooth or Near Field Communication (NFC).
In contrast to conventional “account-based” currency, which uses digital tokens representing Rwandan francs, the proposed CBDC would be “token-based.” Smart contracts can then be used to create new and creative financial goods and services using these cryptocurrency-tokens. Blockchain technology can be used in this situation, even if the BNR acknowledges that there may be privacy and security concerns with this method of creating a currency.
Rwanda’s CBDC Aims for Financial Inclusion
The Rwandan Central Bank hopes to build the CBDC in a manner that is appropriate for the nation. As a result, it is now a tool in the aim to lower the barrier to electronic payments, which have been disruptive due to frequent blackouts.
This ambitious plan for a Rwandan CBDC is made possible by the inclusion of offline transfer functionality among Rwandans. It would be interesting to see how the project develops and what characteristics other nations might add to their own virtual currency.
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