Uganda has officially launched a central bank digital currency (CBDC) pilot, marking a major step in the country’s drive to modernize its financial system through blockchain technology. The move comes as neighboring Kenya prepares to sign its long‑awaited crypto regulation bill into law, signaling a broader wave of digital finance adoption across Sub‑Saharan Africa.
The pilot is being rolled out through a partnership between Global Settlement Network (GSN) and Ugandan developer Diacente Group, who jointly announced plans to tokenize $5.5 billion in real‑world assets alongside the CBDC initiative.
According to both firms, Uganda’s digital shilling will operate on GSN’s permissioned blockchain and be backed by Ugandan treasury bonds, ensuring a secure and compliant foundation for the pilot phase.
Uganda Embraces Tokenization and Blockchain
The Ugandan CBDC is designed to be accessible via smartphones and adheres to Know Your Customer (KYC) and Anti‑Money Laundering (AML) regulations, aligning with both domestic and international compliance standards.
In addition to the digital currency rollout, Uganda’s tokenization initiative will focus on key infrastructure sectors, including agro‑processing hubs, mining projects, and solar energy plants. Diacente Group chairman Edgar Agaba said the effort is about creating a “transparent, tech‑driven ecosystem” capable of attracting investment and supporting sustainable development.
“By integrating tokenization and CBDCs into Uganda’s development roadmap, we’re unlocking long‑term value for our people and our region,” Agaba stated.
Uganda now joins a growing list of African nations testing or deploying CBDCs. Nigeria led the way in 2021 with the launch of the eNaira, while Ghana and South Africa have run their own pilots. Egypt has set a target for 2030, and Rwanda and Kenya remain in the research phase.
Kenya’s Crypto Bill Nears Presidential Approval
Meanwhile, Kenya’s Virtual Asset Service Providers (VASP) Bill, which introduces a licensing framework and consumer protections for exchanges, brokers, and wallet operators, passed its final parliamentary reading on Tuesday. The bill now awaits President William Ruto’s signature to become law.
Under the legislation, the Central Bank of Kenya will oversee payments and custody operations, while the Capital Markets Authority will regulate investment and trading activities. The law also mandates KYC and AML compliance, enforces advertising standards, and establishes penalties for misconduct.
According to Chainalysis, Sub‑Saharan Africa ranks as the third‑fastest‑growing region for crypto adoption. It recorded over $205 billion in on‑chain value between July 2024 and June 2025. By 2026, the continent is projected to have over 75 million crypto users, generating an estimated $5.1 billion in annual revenue.