Background: Bybit Adds Franc Support, Triggering Central Bank Warning
Rwanda's central bank issued a statement on Sunday reiterating the prohibition of cryptocurrency activities involving the national currency, the Rwandan franc. This came after the cryptocurrency exchange Bybit announced on Friday that users could buy and sell digital assets using the Rwandan franc through its peer-to-peer marketplace. It remains unclear whether Bybit obtained local regulatory approval before enabling the feature, and the exchange has not publicly responded to the central bank's statement.
In its statement, the central bank said that under current regulations, crypto-assets are not authorized for payments, conversions involving the franc, or peer-to-peer trading. The bank warned residents against using such services, emphasizing that there is no legal protection in case of losses.
Regulators stressed that the Rwandan franc remains the country's sole legal tender. Financial institutions under the central bank's supervision are prohibited from facilitating conversions between the franc and crypto-assets, 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 curb their use in domestic transactions. Policymakers have framed the position as part of a broader effort to protect financial stability and preserve confidence in the local currency.
The latest warning underscores concern that foreign crypto platforms integrating the franc into trading services could bypass existing safeguards. By enabling peer-to-peer transactions denominated in the local currency, such platforms risk creating informal channels that operate outside 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. Authorities view the initiative as a way to modernize payments infrastructure while maintaining control over monetary policy and currency issuance. A pilot phase is expected to follow as the project advances.
Regulatory Draft: Rules for Virtual Asset Service Providers
Beyond outright restrictions, Rwanda's regulatory efforts are evolving. In March 2025, the Rwanda Capital Market Authority released a draft framework aimed at establishing rules for virtual asset service providers. The proposal outlines a licensing regime that would permit regulated activity while maintaining strict limits on how cryptocurrencies can be used within the country.
Under the draft legislation, crypto-assets would not be recognized as legal tender, and several activities would face prohibitions, including mining operations, mixer services, and tokens linked to the Rwandan franc. The framework also introduces oversight measures intended to bring service providers under regulatory supervision.
Global Trends and Rwanda's Position
Rwanda's 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 restrict their use to prevent capital flight, reduce exposure to volatility, and safeguard monetary sovereignty.
Data from Chainalysis indicates that Rwanda ranks among lower-adoption markets for cryptocurrency activity across 2024 and 2025, with transaction volumes trailing regional peers such as Nigeria and South Africa. Limited usage has so far reduced the scale of potential systemic risks, though regulators appear intent on maintaining tight oversight as global crypto platforms expand their reach.