The Central Bank of Uganda (BOU) has announced plans to pilot a digital Ugandan shilling.
BOU announced the start of work to study the possibilities of using the central bank digital currency in the country and plans to revise the legislation.
BOU takes the position that the digital currency will allow Ugandans to move money cheaply, safely and quickly. The introduction of a non-cash digital equivalent of cash shillings is designed to significantly reduce the money supply in the hands of citizens. In addition, government spending to maintain the “cash economy” should be reduced.
BOU blockchain consultant Noah Baalessanv, commenting on the bank’s decision, said that the CBDC will not only allow the central bank to get an idea of ​​​​the situation in the “real economy of the country”, but also provide tools for tracking transactions.
In February 2022, the Central Bank of Kenya published a report on the opportunities and risks of the digital Kenyan shilling. Last year, the Central Bank of Nigeria (CBN) provided tentative guidance on issuing a national digital currency, and the central bank of the West African nation of Ghana launched the latest phase of testing its digital cedi.
Source: Bits
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