Uganda has initiated a pilot program for its central bank digital currency as part of a joint initiative between blockchain financial infrastructure company, the Global Settlement Network, and Ugandan developer Diacente Group. Both companies issued a joint statement on October 8, framing the pilot as the first step in a broader strategy to transform Uganda into a regional hub for tokenized finance by bringing over $5 billion worth of real-world assets on-chain from sectors vital to the nation’s economy, such as agriculture, mineral resources, renewable energy, and trade logistics. By leveraging blockchain-based tokenization, the companies plan to cut out costly intermediaries, unlock new capital flows, and ultimately create a more transparent framework for domestic and cross-border investment. “We’re building infrastructure that goes beyond theory; a programmable economy grounded in real assets, regulatory collaboration, and mass accessibility,” said Ryan Kirkley, Co-Founder of Global Settlement Network, who believes that this project will help “close the gap between digital finance and real-world impact.” Uganda’s CBDC, which is a digital version of the Ugandan shilling and is backed by treasury bonds issued by the Ugandan government, will serve as a core payment and settlement layer within the country’s evolving tokenized asset ecosystem. Built on the Global Settlement Network’s permissioned blockchain, the digital currency has been designed to be accessible through smartphones and will allow users to engage with Uganda’s blockchain-based economy without requiring traditional banking infrastructure. As real-world assets such as agricultural output, mineral commodities, or renewable energy credits are digitised, the CBDC will provide a secure and compliant means of facilitating transactions. Using this setup ensures that both local participants and global investors have a transparent, government-backed medium of exchange that functions within a compliant environment. “By integrating tokenization and CBDCs into Uganda’s development roadmap, we’re creating transparent, tech-driven ecosystems that attract new capital, empower local industries, and scale sustainable growth from the ground up,” Edgar Agaba, Chairman of Diacente Group, added. The CBDC system incorporates standard Know Your Customer and Anti-Money Laundering protocols that adhere to both Ugandan regulations and global standards, the announcement said. The project is expected to create over one million jobs and generate up to $10 billion in annual exports, and directly supports other government-backed initiatives such as Uganda’s Vision 2040 and the African Union’s Agenda 2063. African nations turn to CBDCs Although CBDCs have faced a lot of criticism across key jurisdictions like the United States and Europe, African nations have been more open to exploring their potential. In many parts of the continent, the combination of limited financial infrastructure, high mobile penetration, and a young, tech-savvy population has created fertile ground for digital currencies backed by central banks. The first CBDC in Africa was launched by Nigeria in 2021, known as the eNaira. Since then, Ghana and South Africa have also moved forward with their own CBDC pilots. Ghana’s eCedi pilot has been focused on mobile integration and retail use cases, while South Africa has explored wholesale applications and cross-border settlements in collaboration with other central banks through the Bank for International Settlements’ Project Dunbar. Egypt has outlined a longer-term strategy, with a full CBDC launch not expected before 2030. Rwanda, meanwhile, is still in the research phase, and the government has sought public input before taking the next steps. The post Uganda launches CBDC pilot as part of $5B tokenization push appeared first on Invezz
