Uganda launched a pilot project to introduce a central bank digital currency (CBDC), as part of a large-scale asset tokenization program in Africa.
Testing of the national digital currency began in Uganda. The initiative aims to ensure transparent settlements and provide access to financial services for residents of the region. The digital Ugandan shilling will be backed by Ugandan Treasury bonds and issued on the Global Settlement Network (GSN) blockchain.
The digital currency will fully comply with local and international compliance standards, including KYC and AML procedures. Users will be able to carry out transactions via smartphones and USSD codes, giving more than 40 million people in the country the opportunity to access secure digital payments for the first time without the need for banks.
According to Ryan Kirkley, Co-Founder of GSN, the CBDC will create a programmable economy where digital finance is directly linked to real assets. The national digital currency project is part of a large-scale asset tokenization program in East Africa, launched by GSN in cooperation with Diacente Group, the company behind Uganda’s Karamoja Green Industrial and Special Economic Zone (GISEZ).
According to Edgar Agaba, Chair of Diacente Group, the CBDC is a key element in building Africa’s largest on-chain economy, covering agribusiness, mineral extraction, renewable energy, and international trade. He also emphasized that the project is not merely a technological solution but a tool for the region’s long-term development.
In 2025, Africa launched its first-ever platform for investing in tokenized real-world assets (RWA) using stablecoins.
