Key features of future central bank digital currencies (CBDCs) are gradually being leaked online. This time, the information comes from Rwanda, an East African nation with an estimated 2024 population of 13.6 million people.
A recent research paper on Rwanda’s CBDC recommends a “two-tier universal CBDC with zero interest rate and partial pseudo-anonymity.” The paper advises the National Bank of Rwanda to ensure compatibility with existing payment systems and other potential CBDCs.
The study identifies 15 potential benefits of CBDCs, with four “hotspots” showing high benefits and limited alternatives. One major advantage is CBDC’s resilience to network disruptions, power outages, or natural disasters. In Rwanda, where mobile money dominates cashless transactions, CBDC could introduce competition.
The CBDC could also serve as an open platform for private payment service providers, fostering innovation and market competition. Despite Rwanda’s economic challenges, the report aims to rival mobile payments, currently led by USDT.
