Digital finance is rapidly evolving across Sub-Saharan Africa, with Uganda launching a Central Bank Digital Currency (CBDC) pilot as part of a larger, $5.5 billion effort to tokenize real-world assets (RWA). Simultaneously, neighboring Kenya is on the verge of enacting its comprehensive crypto regulation bill.
Uganda’s Tokenization and CBDC Pilot:
- Partnership: Blockchain infrastructure firm Global Settlement Network (GSN) and Ugandan developer Diacente Group are leading the initiative.
- CBDC Details: The pilot features a digitized Ugandan shilling deployed on GSN’s permissioned blockchain, backed by Ugandan treasury bonds, and is accessible via smartphones. It adheres to strict local and international KYC and AML standards.
- RWA Focus: The broader $5.5 billion tokenization effort aims to digitize value flows across vital sectors, including agro-processing hubs, mining operations, and solar plants.
- Goal: Diacente Group Chairman Edgar Agaba stated the project seeks to create transparent, tech-driven ecosystems to attract capital and scale sustainable growth.
Kenya’s Regulatory Milestone:
- VASP Bill: Kenya's Virtual Asset Service Providers (VASP) bill successfully passed through the country’s parliament on Tuesday and now only requires President William Ruto’s signature to become law.
- Regulatory Framework: The legislation establishes a framework for licensing, consumer protection, and oversight of exchanges, brokers, and wallet operators.
- Oversight Split: The Central Bank of Kenya will oversee payment and custody functions, while the Capital Markets Authority will regulate investment and trading activities.
Africa’s Growing Digital Asset Market:
Sub-Saharan Africa is the third-fastest growing region for crypto adoption globally, having received $205 billion in on-chain value between July 2024 and June 2025. Stablecoins account for approximately 43% of the region's total transaction volume. Nigeria was the first African nation to launch a CBDC (in 2021), and several others, including Ghana and South Africa, have active pilot programs.
October 2025, Cryptoniteuae