National Bank of Rwanda to establish cryptocurrency regulations by 2025

The National Bank of Rwanda (NBR) revealed on November 18 its plans to introduce regulations for the use and trading of cryptocurrencies, according to The New Times. Governor John Rwangomba stated that an agreement with Rwanda’s Capital Market Authority (CMA) on these regulations is expected to be finalized in the first quarter of 2025.

Rwangomba revealed this initiative during the presentation of NBR’s 2023/2024 annual report to Parliament, responding to a question from MP Phoebe Kanyange regarding the growing reports of Bitcoin usage in Rwanda. He emphasized that cryptocurrencies, which are digital tokens allowing peer-to-peer payments through online systems, lack legislated or intrinsic value, deriving their worth solely from market demand.

Highlighting the volatility of digital currencies, Rwangomba noted that while some individuals may profit significantly from investments in cryptocurrencies, others may face substantial losses. He remarked, “They are currencies that people venture into; the lucky ones make profit and become millionaires quickly, while the unlucky ones lose their investments.”

The governor also pointed out the absence of international regulations governing cryptocurrencies, which leads to various challenges. To address this, NBR is collaborating with the CMA to develop a regulatory framework for virtual assets in line with international standards. Rwangomba mentioned that few countries, including the United States, have established comprehensive regulations for trading virtual assets.

He cautioned Rwandans about engaging in cryptocurrency transactions due to potential risks of fraud and the current lack of regulation. “We cannot eliminate cryptocurrencies,” he stated. “Therefore, it is essential to create laws and regulations governing their operation within our country.”