The National Bank of Rwanda (NBR) has completed a five-month proof of concept (PoC) for a potential central bank digital currency (CBDC), the e-Franc Rwandais (e-FRW), conducted from May to 31 October 2025.

The PoC assessed the feasibility of introducing a Rwanda-specific CBDC and found that it could support secure, instant payments, encourage innovation within the financial sector and contribute to the country’s cashless and digital economy objectives.

The exercise was carried out in collaboration with commercial banks, payment service providers, fintech firms and public institutions.

It generated insights into technology performance, user experience, risk management, and policy and legal considerations.

Following the PoC, NBR will proceed with a 12-month pilot phase. The pilot will involve a limited and diverse group of users in Kigali, a secondary city and selected rural areas.

It will focus on financial inclusion by testing accessible channels, including USSD and low-cost devices, and will expand practical use cases with merchants and other stakeholders in a controlled setting.

The phase will also strengthen collaboration with domestic and international partners, including efforts related to interoperability and potential cross-border applications.

The pilot will incorporate safeguards covering privacy, cybersecurity and coordination with financial institutions and relevant authorities.

NBR stated that it has not made a decision on whether to issue the e-FRW and will base any determination on evidence from the pilot, stakeholder feedback and broader policy and regulatory considerations.

Featured image credit: Edited by Fintech News Middle East, based on image by NBR and user850788 via Freepik