The Central Bank of Rwanda has reiterated its ban on cryptocurrency activities involving the country’s currency after Bybit introduced support for the Rwandan franc in its peer-to-peer market, prompting swift action from regulators.
In a statement released on Sunday, Rwanda’s Centrac Bank said that the current framework does not allow crypto-asset payments, exchanges involving francs, or peer-to-peer transactions. The central bank warned residents not to use such services, citing financial risks and lack of legal protection in case of loss.
This clarification followed Bybit’s announcement on Friday that users will be able to buy and sell digital assets using Rwandan francs through the company’s P2P platform. The exchange did not say whether it received local regulatory approval before enabling the feature, nor did it publicly respond to the central bank’s statement.
The regulator stressed that the Rwandan franc remains the country’s only legal tender. The central bank also reiterated that financial institutions under its supervision are prohibited from facilitating exchanges between francs and crypto assets, tightening regulations aimed at limiting exposure between the domestic financial system and digital asset markets.
Rwanda’s restrictive cryptocurrency stance
Rwanda has maintained a restrictive stance towards cryptocurrencies since 2018, when authorities first moved to restrict their use in domestic transactions. Policymakers have positioned this position as part of a broader effort to protect financial stability and maintain confidence in local currencies.
The latest warning highlights concerns that foreign cryptocurrency platforms that integrate the franc into their trading services could circumvent existing safeguards. By enabling peer-to-peer transactions denominated in local currencies, such platforms risk creating informal channels that operate outside of regulatory oversight.
At the same time, Rwanda is pursuing a state-backed digital currency project, the e-Franc, which is still in the proof-of-concept stage. Authorities see the initiative as a way to modernize payments infrastructure while maintaining control over monetary policy and currency issuance. A pilot phase will continue as the project progresses.
Regulatory efforts have also evolved beyond outright restrictions. In March, the Rwanda Capital Markets Authority published a draft framework aimed at establishing rules for virtual asset service providers. The proposal outlines a licensing regime that would allow regulated activities while maintaining strict limits on how cryptocurrencies can be used in the country.
Under the bill, crypto assets would not be recognized as legal tender and several activities would be prohibited, including mining operations, mixer services, and tokens related to the Rwandan franc. The framework also introduces monitoring measures aimed at bringing service providers under regulatory supervision.
This approach reflects a broader trend in emerging markets to balance innovation with control of domestic financial systems. Some jurisdictions have embraced digital assets, while others are seeking to restrict their use to prevent capital flight, reduce exposure to volatility, and protect monetary sovereignty.
According to Chainalysis data, Rwanda ranks as a market with low penetration of crypto activity in 2024-2025, with trading volumes lagging behind peers in the region such as Nigeria and South Africa.
Limiting use has so far reduced the scale of potential systemic risks, but regulators appear intent on maintaining tight oversight as global cryptocurrency platforms expand their reach.
