Uganda has launched a pilot for its Central Bank Digital Currency (CBDC), effectively a digital version of the Ugandan shilling implemented on a specialized blockchain and supported by Ugandan treasury bonds.

This initiative is part of a wider strategy to tokenize approximately $5.5 billion worth of tangible assets across Uganda, developed in collaboration with Diacente Group and the Global Settlement Network (GSN). The announcement highlights the potential for these digital assets in the financial ecosystem of the nation.

In a related development, Kenya’s parliament has recently passed legislation regulating virtual asset service providers (VASP), which is set to become law pending the president’s approval. This framework aims to establish guidelines for exchanges, brokers, and other related services, while empowering the Central Bank of Kenya to govern payment and custody operations.

Image: Kenya’s VASP bill passed through the country’s parliament on Tuesday.
(Source: YouTube)

Sub-Saharan Africa has reportedly become the third fastest growing region for cryptocurrency adoption, with over $205 billion in on-chain value recorded from July 2024 to June 2025.

Uganda’s CBDC, which complies with both local and international standards such as KYC and AML, is designed for accessibility via smartphones. In addition, this digitization initiative targets critical sectors, including agriculture and energy, in an effort to stimulate economic growth.

Edgar Agaba, the Chairman of Diacente Group, stated, “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.”

The moves in Uganda and Kenya signal a significant shift in the digital landscape of Africa, with nations like Nigeria already having set precedents in CBDC initiatives. Meanwhile, countries like Ghana and South Africa also explore similar digital currency options.