The central bank of Rwanda has announced the ban on the use of cryptocurrency related to the country’s currency after Bybit launched the support of Rwanda franc in the peer-to-peer market, resulting in faster response.
In a sentence printed On Sunday, Centrak Bank of Rwanda said that crypto-assets are not allowed for payments, franc conversion, or peer-to-peer trading under the current policy. The central bank warned people against using such services, citing financial risks and lack of legal protection in case of losses.
The explanation was done later to announce from Bybit on Friday that users can buy and sell digital assets using the Rwanda Franc through its P2P platform. The exchange did not indicate whether it had received local approval before launching the feature, and did not provide an official response to the central bank.
The administration emphasized that the Rwandan franc remains the only legal tender in the country. The central bank also announced that supervised financial institutions are prohibited from facilitating the conversion between the franc and crypto-assets, strengthening restrictions designed to reduce transparency between domestic financial markets and digital financial markets.
How Rwanda bans crypto
Rwanda has maintained a policy of restricting the use of cryptocurrencies since 2018, when authorities began restricting their use for real estate transactions. Policy makers have created this as one way to try to protect financial stability and maintain confidence in the local currency.
The latest warning underscores concerns that foreign crypto platforms involving the franc in trading could bypass existing protections. By allowing peer-to-peer trading to use local currency, such platforms may be at risk of creating unsustainable systems that operate out of control.
At the same time, Rwanda to follow a government-backed digital currency project, e-franc, which remains in the proof-of-concept phase. The authorities see this as a way to improve the payment system and maintain the regulation of the currency and currency mix. A testing phase is expected to follow as the project progresses.
Regulatory functions are also moving beyond actual restrictions. In March, the Rwanda Capital Market Authority release a policy aimed at regulating property service providers. The proposal describes a license that would allow regulated activities while maintaining strict limits on how cryptocurrencies can be used in the country.
Under the draft law, crypto-assets will not be recognized as legal tender, and a number of activities will be prohibited, including mining activities, mixing activities, and tokens related to the Rwandan franc. The policy also introduces regulatory measures aimed at bringing workers under the control of the law.
This strategy reflects a growing trend among emerging markets that seek to balance innovation and improve domestic financial systems. While some jurisdictions have embraced digital assets, others have moved to restrict their use in order to prevent financial flight, reduce inflation, and protect sovereign rights.
Data from Chainalysis shows that Rwanda groups among the low-income markets for cryptocurrency services in 2024 and 2025, with the number of products following regional counterparts such as Nigeria and South Africa.
Limited use so far has reduced the number of potential systemic threats, although regulators appear to want to keep a close watch as global crypto platforms expand their reach.
