Uganda launches CBDC pilot in $5.5 billion tokenization drive
The digital currency is backed by Ugandan treasury bonds and can be accessed via smartphones.
Uganda has launched a central bank digital currency (CBDC) pilot as part of a wider effort to tokenize $5.5 billion worth of real-world assets across key sectors of its economy.
Driving the news
- Blockchain financial infrastructure company Global Settlement Network (GSN) has partnered with local developer Diacente Group to roll out the initiative, which includes both the CBDC pilot and a large-scale tokenization program.
- According to a joint announcement on Wednesday, the pilot version of Uganda’s digital shilling operates on GSN’s private blockchain. It’s supported by treasury bonds and can be used through mobile devices.
- The pilot also adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) standards in line with both local and international compliance frameworks.
- The broader tokenization initiative aims to digitize assets and financial flows across several sectors, including agro-processing hubs, mining operations, and solar energy projects, the announcement read.
- According to GSN and Diacente Group, the project is designed to strengthen Uganda’s financial infrastructure, improve capital efficiency, and attract private investment into industries that have traditionally lacked access to transparent financing.
Key quote
- Diacente Group’s chairman, Edgar Agaba, said the goal is to “unlock long-term value for our people and our region.”
“By integrating tokenization and CBDCs into Uganda’s development roadmap, we’re creating transparent, tech-driven ecosystems that attract new capital, empower local industries, and scale sustainable growth from the ground up,” Agaba said.
Zoom out
- Across Africa, central banks are increasingly experimenting with digital currencies as part of broader digital economy reforms.
- Nigeria became the first African country — and the second globally — to launch a CBDC in 2021 with the eNaira, though adoption has been limited.
- Ghana and South Africa have also conducted CBDC pilots, while Egypt has set a launch target of 2030.
- Rwanda and Kenya remain in the research and public consultation stages.
