Rwanda Tests Digital Franc as Central Bank Confirms CBDC Ready for Pilot Phase

The National Bank of Rwanda has concluded a five month national experiment that could redefine how Rwandans pay, save and transfer money, confirming that a digital version of the franc is technically feasible and widely welcomed by early users. In a newly released Proof of Concept report published in February 2026, the central bank detailed how it tested a Central Bank Digital Currency known as the e-Franc Rwandais or e-FRW across online, offline and USSD channels. The findings show that the digital currency cleared payments instantly, worked without internet through secure smartcards, and

The National Bank of Rwanda has concluded a five month national experiment that could redefine how Rwandans pay, save and transfer money, confirming that a digital version of the franc is technically feasible and widely welcomed by early users. In a newly released Proof of Concept report published in February 2026, the central bank detailed how it tested a Central Bank Digital Currency known as the e-Franc Rwandais or e-FRW across online, offline and USSD channels. The findings show that the digital currency cleared payments instantly, worked without internet through secure smartcards, and allowed feature phone users to transact using simple USSD codes. The bank described the trial as a disciplined learning phase rather than a symbolic exercise. “The PoC demonstrated that a context specific CBDC, designed and governed as digital public infrastructure, has the potential to enhance financial system resilience, broaden inclusion, stimulate innovation, and improve the efficiency of cross border payments,” the report states. The central bank, established in 1964 to issue the Franc Rwandais and safeguard price stability, said the experiment was guided by caution and evidence. “Importantly, no decision has been made regarding the issuance of the e-FRW. Any future determination will be guided by evidence generated during the pilot, stakeholder feedback, and broader policy and regulatory considerations,” the bank noted. Inside the trial, users were able to send digital francs instantly from one wallet to another, with recipients free to spend the money immediately without settlement delays. In practical terms, a user could transfer 2,000 e-FRW to a merchant and see both balances update in real time, mirroring the finality of physical cash but in digital form. Perhaps most striking was the offline capability. At a live merchant setting within the central bank’s premises, testers paid for goods using smartcards and point of sale devices that were not connected to the internet. Funds were reconciled only after connectivity was restored. Participants later emphasized that this feature was not just convenient but essential, particularly for rural areas or during network disruptions. User research conducted alongside the technical testing showed strong appetite for the digital currency. According to the report, 62%t of participants said they would be very likely to use the e-FRW if introduced nationally, while 58% would recommend taking part in future tests. More than half said they would use offline payments daily, and 83% preferred keeping a portion of their balance offline as a precaution. Users described the system as convenient, secure and fast. They also called for strong fraud protection, two factor authentication and clear dispute resolution processes. Privacy and cybersecurity concerns were raised, underscoring the need for transparency as the project moves forward. To test the innovation potential of digital money, the central bank launched a national Ideathon that attracted 40 expressions of interest, with 21 teams submitting full proposals. Developers pitched solutions ranging from universal wallets to agriculture linked finance tools, signaling how programmable wallets could unlock new services without altering the nature of money itself. Cross border payments were also simulated. The test illustrated how two domestic digital currency payments in different countries could be synchronized to settle instantly, reducing reliance on correspondent banking chains. The bank stressed that any live corridor would require formal agreements, clear compliance frameworks and carefully defined performance indicators. Behind the scenes, the project involved collaboration with ministries including the Ministry of Finance and Economic Planning and the Ministry of ICT and Innovation, as well as financial service providers and a technology partner. The central bank maintained that the learning process strengthened domestic capacity and institutional ownership over the design choices. As the project advances, the next step is a 12 month pilot expected to take place in Kigali, one secondary city and selected rural areas. The pilot will involve real users, real merchants and controlled real money flows, allowing policymakers to measure how the digital franc performs under genuine economic conditions. The central bank emphasized that the two tier model will remain intact, with financial service providers distributing the currency while the regulator sets guardrails and maintains monetary sovereignty. Limits, pricing structures and liquidity effects will be closely monitored to ensure financial stability. For Rwanda, a country that has positioned itself as a continental leader in digital transformation, the findings mark a significant milestone. The report concludes that with careful planning and phased implementation, the country is well positioned to advance its CBDC exploration responsibly and transparently. For now, the message from the central bank is clear. The digital franc is no longer theoretical. It has been tested, challenged and refined. The final decision on whether it will enter everyday life now rests on the results of the upcoming pilot and the confidence of the Rwandan public.