- The National Bank of Rwanda made it clear that the Rwandan franc is the only legal tender.
- NBR stated crypto can’t be used for payments, conversions, or P2P trades involving francs.
- Rwanda is actively working on a central bank digital currency (CBDC), the “e‑franc.”
Rwanda’s central bank has warned that Bybit’s new support for Rwandan franc trading on its P2P platform is not authorized. The regulator said crypto transactions involving the local currency remain illegal, stressing financial risks for users and reinforcing the country’s cautious stance toward digital assets.
Rwanda Blocks Franc-to-Crypto Trading
The National Bank of Rwanda said the Rwandan franc remains the country’s only legal tender. The regulator added that cryptocurrencies cannot be used for payments, conversions, or peer-to-peer trades involving francs.
Officials warned that users engaging in such activity would have no legal protection in case of losses. The statement effectively blocks Bybit’s rollout, indicating the feature launched without regulatory approval.
Bybit’s P2P model allows users to trade crypto directly using local currencies. While popular in emerging markets, regulators often raise concerns about money laundering, consumer protection, and capital control risks.
Authorities Concerned Over Monetary Control
Rwanda’s regulators are particularly cautious about direct conversion between the franc and cryptocurrencies. Officials say such channels could weaken capital controls and reduce oversight of financial flows.
The country has maintained a restrictive stance on crypto since 2018, prioritizing financial stability and currency control over rapid adoption.
Rwanda Moves Toward CBDC
Despite strict rules, Rwanda is exploring regulated digital finance. The Capital Market Authority recently released draft rules for Virtual Asset Service Providers, which would allow licensed firms to operate under strict compliance.
The framework would ban crypto as legal tender and restrict mining, mixers, and franc-pegged tokens, while creating a licensing pathway.
Rwanda is also developing a central bank digital currency known as the e-franc.
Officials worry that unregulated crypto platforms could one day rival or hurt a future CBDC, and that tying the national currency to volatile crypto markets could shake public confidence in any official digital money project
Related: Africa Targets $70B Intra-Continental Trade Boost With IOTA Blockchain and USDT Payments
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Source: https://coinedition.com/national-bank-of-rwanda-halts-bybits-franc-to-crypto-p2p-support/
