Rwanda’s central bank has reiterated its ban on cryptocurrency activity involving the national currency after Bybit introduced support for the Rwandan franc on its peer-to-peer marketplace, prompting a swift regulatory response.
In a statement published on Sunday, the Centrak Bank of Rwanda said crypto-assets are not approved for payments, conversions involving the franc or peer-to-peer trading under the current framework. The central bank warned residents against using such services, citing financial risks and the absence of legal protection in case of loss.
The clarification followed an announcement by Bybit on Friday that users could buy and sell digital assets using the Rwandan franc through its P2P platform. The exchange did not say whether it had secured local regulatory approval before activating the feature, and it has not issued a public response to the central bank’s statement.
Regulators emphasized that the Rwandan franc remains the country’s only legal tender. The central bank also reiterated that financial institutions under its supervision are prohibited from facilitating conversions between the franc and cryptoassets, reinforcing restrictions designed to limit exposure between the domestic financial system and digital asset markets.
Rwanda’s restrictive crypto stance
Rwanda has maintained a restrictive stance on cryptocurrencies since 2018, when authorities first moved to limit their use in domestic transactions. Policymakers have framed the position as part of a broader effort to protect financial stability and maintain confidence in the local currency.
The latest warning underscores concerns that foreign crypto platforms that integrate the franc into trading services could bypass existing security measures. By enabling peer-to-peer transactions denominated in the local currency, such platforms risk creating informal channels that operate outside of regulatory oversight.
At the same time, Rwanda is pursuing a state-backed digital currency project, the e-franc, which remains in a proof-of-concept phase. The authorities see the initiative as a way to modernize the payment infrastructure while maintaining control over monetary policy and currency issuance. A pilot phase is expected to follow as the project progresses.
Regulatory efforts are also developing beyond direct restrictions. In March, Rwanda’s Capital Markets Authority released a draft framework aimed at establishing rules for virtual asset providers. The proposal outlines a licensing scheme that would allow for regulated activity while maintaining strict limits on how cryptocurrencies can be used in the country.
Under the draft law, cryptoassets would not be recognized as legal tender and several activities would face bans, including mining, mixer services and tokens linked to the Rwandan franc. The framework also introduces supervisory measures aimed at bringing service providers under regulatory oversight.
The approach reflects a broader trend among emerging markets seeking to balance innovation with control over domestic financial systems. While some jurisdictions have embraced digital assets, others have moved to limit their use to prevent capital flight, reduce exposure to volatility and ensure monetary sovereignty.
Data from Chainalysis indicates that Rwanda ranks among lower adoption markets for cryptocurrency activity in 2024 and 2025, with transaction volumes lagging behind regional peers such as Nigeria and South Africa.
Limited use has so far reduced the scope of potential systemic risks, although regulators appear intent on maintaining tight oversight as global crypto platforms expand their reach.