Rwanda’s Central Bank is studying the possibility of creating its own digital currency. Photo: File

JOHANNESBURG – Rwanda’s Central Bank is studying the possibility of creating its own digital currency and is looking at studies currently being conducted in Canada, Singapore and the Netherlands as the three countries have already started to experiment with the technology.

Kigali will try to learn as much as possible from these countries, Bitcoinexchange Guide reported.

However, there are several concerns about how to convert the national fiat currency into something digital and how fast transactions can be undertaken, according Peace Uwase, the Central Bank’s financial stability director.

This is because Bitcoin transactions take considerable time to complete and that is something the bank wants to avoid if the endeavour moves forward.

Another issue that concerns Uwase is if the current technology available is sufficiently advanced to create assets because without this it will not be possible to create the digital currency. The bank is studying possible solutions to overcome this.

Scammers present another threat. Only months ago Kigali warned investors against crypto scammers. If the new currency is launched people will need to be made aware of how to avoid falling prey to the scammers.

- African News Agency (ANA)