Uganda has launched a pilot for its central bank digital currency (CBDC), marking a major step in the nation’s digital finance evolution, while Kenya moves closer to establishing a regulatory framework for cryptocurrencies. The developments highlight growing momentum across East Africa toward embracing blockchain-based financial systems.
The CBDC pilot, developed through a partnership between blockchain infrastructure firm Global Settlement Network (GSN) and Ugandan developer Diacente Group, is part of a larger initiative to tokenise $5.5 billion worth of real-world assets. The digital version of the Ugandan shilling operates on a permissioned blockchain managed by GSN and is backed by Ugandan treasury bonds, ensuring stability and credibility.
According to the announcement, the CBDC complies with both local and international regulatory standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Users can access it directly through smartphones, reflecting Uganda’s effort to create an inclusive digital economy.
Beyond the CBDC, the broader tokenisation program will focus on digitising key sectors of Uganda’s economy, including agro-processing hubs, mining operations, and renewable energy infrastructure. Edgar Agaba, Chairman of Diacente Group, said the initiative aims to “unlock long-term value for our people and our region” by creating transparent, technology-driven ecosystems that attract investment and stimulate sustainable growth.
Uganda joins a growing list of African nations testing or deploying central bank digital currencies. Nigeria led the way with its eNaira launch in 2021, followed by pilot programs in Ghana and South Africa. Egypt is targeting a 2030 rollout, while Rwanda and Kenya remain in the research and consultation phase.
Meanwhile, Kenya’s Virtual Asset Service Providers (VASP) Bill has cleared its final parliamentary hurdle and now awaits President William Ruto’s signature to become law. The bill introduces a licensing regime and defines clear oversight responsibilities—placing custody and payment systems under the Central Bank of Kenya, and investment and trading activities under the Capital Markets Authority. It also enforces strict KYC and AML requirements and imposes penalties for deceptive advertising or non-compliance.
The dual progress of Uganda’s CBDC pilot and Kenya’s impending crypto regulation underscores Sub-Saharan Africa’s rising influence in the global digital finance ecosystem. A September report from Chainalysis identified the region as the third-fastest growing in crypto adoption, with $205 billion in on-chain value received between July 2024 and June 2025.
With Africa’s crypto user base projected to exceed 75 million by 2026 and total revenues expected to reach $5.1 billion, the continent is rapidly emerging as a key frontier for digital asset innovation. Stablecoins alone make up around 43% of Sub-Saharan Africa’s crypto transaction volume, with Uganda and Kenya both positioned to play increasingly central roles in the region’s blockchain-driven transformation.
