Uganda has launched an ambitious CBDC pilot, sparking major financial vibes in the sub Saharan African region. It’s seen as a significant milestone in Africa’s digital finance revolution and Uganda’s commitment to harnessing blockchain technology for economic growth.
The CBDC pilot is a collaborative effort between blockchain infrastructure provider Global Settlement Network (GSN) and Ugandan developer Diacente Group. The project essentially introduces a digitized Ugandan shilling on a permissioned blockchain, and it will be backed by treasury bonds.
The partnership aims to tokenize $5.5 billion in real-world assets, with the CBDC pilot as a cornerstone. Deployed on GSN’s secure blockchain, the digital shilling is accessible via smartphone, making it a practical tool for everyday transactions.
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The initiative adheres to stringent local and international compliance standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, ensuring trust and security in the system. Edgar Agaba, the chairman of Diacente Group, sees the CBDC pilot as a transformative step.
“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,” he said.
Beyond the CBDC pilot, the tokenization effort will also digitize critical sectors like agro-processing hubs, mining operations, and solar plants, to give long-term value for Uganda’s economy and its people.
Kenya is so ready to join the Ugandan CBDC Pilot party!!!
Meanwhile, neighboring Kenya is also going through major transformation and is on the verge of a regulatory breakthrough, with its Virtual Asset Service Providers (VASP) bill passing parliament.
The bill now simply awaits President William Ruto’s signature to become law. Passed earlier this week after its third parliamentary reading, the bill establishes a robust framework for licensing exchanges, brokers, wallet operators, and token issuers.
As per the Bill, the Central Bank of Kenya will oversee payment and custody functions, while the Capital Markets Authority will regulate investment and trading activities. With KYC and AML provisions aligned with Financial Action Task Force standards, the bill also includes measures against deceptive advertising and imposes fines for non-compliance. Once signed into law, it will position Kenya as a leader in Africa’s regulated crypto space.
In that sense, the African region is rushing to embrace digital currencies and blockchain innovation. As a matter of fact, Sub-Saharan Africa is a hotbed for crypto adoption, ranking as the third-fastest-growing region globally. according to a September Chainalysis report.
Image: AI Generated.
Between July 2024 and June 2025, the region received $205 billion in onchain value, with stablecoins driving 43% of transaction volume. Nigeria, South Africa, Ghana, Kenya, and Zambia lead the pack, while Uganda ranks seventh, signaling its rising prominence in the crypto landscape.
Image: AI Generated.
Therefore, Ugandan CBDC pilot is part of a broader African trend. Nigeria pioneered the continent’s first CBDC in 2021, followed by pilots in Ghana and South Africa. Egypt has set a 2030 launch date, while Kenya and Rwanda are still in research and consultation phases.
Via ODI Global
As Uganda pioneers its digital shilling and Kenya prepares to regulate its crypto ecosystem, the two nations are setting the stage for a dynamic, tech-driven financial future in Sub-Saharan Africa. With the global spotlight on the African region, these developments could inspire other African nations to start their own fintech love stories.
