Rwanda’s Central Bank Looking to Launch Its Own Crypto
- The bank is finding some difficulties with the nature of the technology.
The National Bank of Rwanda (NBR) is evaluating the feasibility of the development and issuance of a central bank-backed digital currency.
According to an August 22 Bloomberg report, with its own digital currency, the central bank is attempting to make the processing of transactions more efficient and to boost economic growth.
The report also detailed that the Rwandan monetary regulator is closely studying the developments made by other central banks in countries like Canada, Singapore, and the Netherlands in the arena of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology.
Limitations of the technology in a centralized environment
Despite advancement towards the adoption of decentralized technology, the bank is still facing many roadblocks, especially with the design of the digital currency.
“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,” Peace Masozera Uwase, the director-general of the financial stability department at the NBR, said.
He also pointed out the limitations of the decade-old technology for its integration into the ecosystem of a central bank.
“Challenges come in, if [the] technology is down how do you deal with such issues? We will join in once we are ready,” Uwase added.
Though the Rwandan central bank is now inclined to issue its own cryptocurrency, it is hostile against scams involving Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and issued a notice against them at the end of May.
PUBLIC NOTICE: Warning against Pyramid Schemes, Network Marketing Programs and Scam Coins. #Rwanda#RwOTpic.twitter.com/Vv4Ad2hXwr
— National Bank Rwanda (@CentralBankRw) May 30, 2019
Similar to the NBR, many central banks across the world are studying the feasibility of issuing a digital currency of their own. Earlier this month, a senior official of the Chinese central bank revealed that it is on its way to rolling out a central bank-backed cryptocurrency.
The National Bank of Rwanda (NBR) is evaluating the feasibility of the development and issuance of a central bank-backed digital currency.
According to an August 22 Bloomberg report, with its own digital currency, the central bank is attempting to make the processing of transactions more efficient and to boost economic growth.
The report also detailed that the Rwandan monetary regulator is closely studying the developments made by other central banks in countries like Canada, Singapore, and the Netherlands in the arena of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology.
Limitations of the technology in a centralized environment
Despite advancement towards the adoption of decentralized technology, the bank is still facing many roadblocks, especially with the design of the digital currency.
“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,” Peace Masozera Uwase, the director-general of the financial stability department at the NBR, said.
He also pointed out the limitations of the decade-old technology for its integration into the ecosystem of a central bank.
“Challenges come in, if [the] technology is down how do you deal with such issues? We will join in once we are ready,” Uwase added.
Though the Rwandan central bank is now inclined to issue its own cryptocurrency, it is hostile against scams involving Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and issued a notice against them at the end of May.
PUBLIC NOTICE: Warning against Pyramid Schemes, Network Marketing Programs and Scam Coins. #Rwanda#RwOTpic.twitter.com/Vv4Ad2hXwr
— National Bank Rwanda (@CentralBankRw) May 30, 2019
Similar to the NBR, many central banks across the world are studying the feasibility of issuing a digital currency of their own. Earlier this month, a senior official of the Chinese central bank revealed that it is on its way to rolling out a central bank-backed cryptocurrency.