Bank of Uganda launched a study on national digital currency

A national cryptocurrency will allow financial transactions to be carried out cheaper and faster

11.03.2022 - 15:25

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1 min

What’s new? The Bank of Uganda (BOU) has begun exploring the possibility of issuing a national digital currency and also plans to review the country’s financial laws, the CGTN Africa YouTube channel reports. The decision of the Central Bank is supported by CBDC proponents who believe that digital currency will allow financial transactions to be carried out cheaper and faster.

Link to the CGTN Africa YouTube channel

What does the Central Bank representative say? The bank’s executive director for operations, Charles Abuka, has warned that the BOU has to be clear on why it wants to launch the CBDC. Abuka suggested that the issuance of digital currency will have technology implications as well as require some costs.

The executive director stressed that national cryptocurrencies may be susceptible to cyber-attacks.

What are the benefits for the Central Bank? One of Uganda’s digital currency proponents and a blockchain consultant, Noah Baalessanv, believes that CBDC will allow the Central Bank to gain insight into the “actual economy” because it will be able to trace transactions.

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