Rwanda plans to launch its CBDC in two years

·
June 6, 2024
·
4 min read
cryptocurrency

Below is a delayed version of our flagship newsletter, Techpoint Digest

Every weekday, 30,000 subscribers get a fun 5-minute roundup of happenings in African and global tech, directly in their inbox, hours before everyone else.

Hello,

Victoria from Techpoint Africa here,

Here's what I've got for you today:

  • Rwanda plans to launch its CBDC by 2026
  • Why this struggling YC startup isn't giving up
  • Zone launches a blockchain-powered PoS payment gateway

Rwanda to launch its digital currency by 2026

Bitcoin
Image by Freepik

Rwanda plans to create its own Central Bank Digital Currency (CBDC) within two years, offering a secure, free, and convenient alternative to conventional cash. 

The CBDC is projected to boost financial inclusion by allowing more unbanked people to join the formal economy. 

Other African countries, like Nigeria, Ghana, and South Africa, are either in the piloting phase or have already implemented CBDCs, which are driving the development. 

In November 2024, the National Bank of Rwanda Governor, John Rwangombwa, announced the CBDC's development. A feasibility study was launched in May 2024 to investigate the possible benefits, dangers, and practicalities of establishing a retail CBDC in Rwanda.

So, Rwanda will conduct a proof of concept to test the technology, design, and speed on a limited scale once the public consultation process is completed in four weeks. 

What’s more, the government plans to create a CBDC that is accessible offline, especially in places without Internet access or smartphones or during power outages.

Let the best of tech news come to you
Join 30,000 subscribers who receive Techpoint Digest, a fun week-daily 5-minute roundup of happenings in African and global tech, directly in your inbox, hours before everyone else.
Digest Subscription

Give it a try, you can unsubscribe anytime. Privacy Policy.


Why this struggling YC startup isn't giving up

The Flux team
The Flux team

Startup closures in Africa's tech sector have increased, with 10 to 15 startups closing shops in 2023. The majority of these firms raised millions of dollars in capital before closing. 

Ben Eluan, co-founder and CEO of YC-backed Flux, has stated that, despite regulatory obstacles, the firm will not give up. 

READ MORE   A classifieds startup receives Sudan’s first foreign tech investment in over 25 years

The company, created in 2020 by Eluan and Osezele Orukpe, intends to make cross-border transactions safer and cheaper. 

Flux's concept of powering cross-border transactions in Africa appealed to investors, and the company was accepted into accelerators Pioneer in 2020 and Y Combinator in 2021. 

However, Flux's ambition to become a $1 billion cross-border payments startup is hampered by one stumbling block: regulation. To learn about its struggles and survival tactics, read Bolu’s latest insights here.


Zone launches a blockchain-powered PoS payment gateway

eTranzact PoS terminal
eTranzact PoS terminal; Image source: Nairametrics

Zone, an African payment infrastructure firm, has introduced a blockchain-powered PoS payment gateway product based on its payment platform. 

The solution will help banks and fintechs facilitate payments by allowing transactions to be routed directly to issuers. Zone's decentralised payment switching network connects acquirers directly to issuers, resulting in faster and more reliable transactions. 

As a CBN-licensed payment switch, Zone can perform direct transaction routing without breaking interbank payment regulations.

This move comes as Nigeria's regulator tightened regulations for PoS agents, requiring all 1.9 million of them to comply by July 2024.

The gateway will allow beneficiaries and their financial institutions to settle on the same day, to eliminate chargebacks and fraud on PoS terminals. How? By auto-refunding customers for unsuccessful transactions and auto-declining fraudulent chargebacks in real-time.


In case you missed it

READ MORE   ICT Policy: Foreign tech companies to give up 30% ownership to Kenyans

What I'm watching

Opportunities   

  • Moniepoint is currently hiring for 63 positions in the United Kingdom and several Nigerian states, including Lagos, Abia, and Anambra. Check them out here to apply.
  • If you have a small business in Nigeria, Kenya, or South Africa, apply for the Google Hustle Academy here.
  • If you're a Product Designer and are looking for a remote role, check out this link for several roles.
  • Several companies are looking for software engineers. Check out this link to work remotely with them.
  • Check out this link for several remote Product Manager roles.
  • Explore this website to find multiple job opportunities in Data that align with your preferences.
  • If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.

Have a lovely Thursday!

Victoria Fakiya for Techpoint Africa.

She's autistic and interested in mental health and how technology can help Africans with mental disorders. Find her on Twitter @latoria_ria.
She's autistic and interested in mental health and how technology can help Africans with mental disorders. Find her on Twitter @latoria_ria.
She's autistic and interested in mental health and how technology can help Africans with mental disorders. Find her on Twitter @latoria_ria.

Other Stories

43b, Emina Cres, Allen, Ikeja.

 Techpremier Media Limited. All rights reserved
magnifier