The National Bank of Rwanda (NBR) has warned citizens against using the peer-to-peer crypto trading platform Bybit, which recently began supporting the Rwandan franc (FRW). In a public statement, the central bank reiterated that cryptocurrency payments and trading involving the local currency remain illegal, citing serious financial risks and a lack of recourse for losses.
The central bank of Rwanda, known as the National Bank of Rwanda (NBR), has cautioned its people not to engage with Bybit‘s peer-to-peer cryptocurrency platform. The platform recently started supporting transactions in the Rwandan franc.
In a statement, the central bank reiterated that the use of cryptocurrencies for payments and trading with the local currency is still considered illegal within the country. Among the reasons cited were “the serious financial risks involved and the lack of any recourse in case of loss.”
This warning coincides with Rwanda’s efforts to bolster its financial system and maintain control over its currency. The central bank has not been very enthusiastic about cryptocurrencies and has banned their use since 2018.
The regulator for capital markets has issued a draft regulation targeting virtual asset service providers. The goal is to encourage “responsible innovation” alongside consumer protection.
NBR‘s stance reflects low crypto adoption rates compared to other African countries. According to Chainalysis, the amount of crypto transacted in Rwanda is only a small part of what more crypto-friendly countries like Nigeria and South Africa handle.
