Uganda has initiated a central bank digital currency (CBDC) pilot as part of a wider tokenization strategy throughout the African nation, while neighboring Kenya is close to implementing a crypto regulation bill.
The Global Settlement Network (GSN), a blockchain financial infrastructure firm, has collaborated with Ugandan developer Diacente Group to tokenize $5.5 billion in real-world assets, which also encompasses a CBDC pilot, as announced by the companies on Wednesday.
This development follows the passing of Kenya’s virtual asset service providers (VASP) bill in parliament on Tuesday, which now awaits President William Ruto’s signature to become law.
According to a September report from blockchain data platform Chainalysis, Sub-Saharan Africa, which includes Uganda and Kenya, has been identified as the third-fastest growing region for crypto adoption, having received $205 billion in on-chain value between July 2024 and June 2025.
Uganda CBDC supported by treasury bonds
Uganda’s CBDC, a digital version of the Ugandan shilling, has been launched on GSN’s permissioned blockchain, secured by Ugandan treasury bonds, and is accessible via smartphones, as stated by GSN and the Diacente Group.
The pilot complies with both local and international regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines.
Meanwhile, the tokenization initiative aims to digitize critical flows in major sectors, including physical infrastructure like agro-processing centers, mining activities, and solar installations.
Edgar Agaba, chairman of Diacente Group, emphasized the initiative’s goal to unlock “long-term value for our people and our region.”
“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.”
Nigeria was the first African country to launch a CBDC in 2021, according to the Overseas Development Institute. Other nations like Ghana and South Africa have also piloted CBDCs, while Egypt plans to launch by 2030, and Rwanda and Kenya are still in the research and public consultation stages.
Kenya’s crypto bill passes final hurdle
Kenya’s VASP bill, originally introduced in January, establishes licensing requirements, consumer protections, and a framework for exchanges, brokers, wallet operators, and token issuers. The bill successfully passed through the third reading in parliament on Tuesday and is now pending the president’s signature to take effect.
Under the new law, the Central Bank of Kenya will oversee payment and custody operations, while the Capital Markets Authority will regulate investment and trading activities.
Related: African economies show high potential for digital asset adoption
The legislation also includes KYC and AML provisions consistent with the standards of the Financial Action Task Force, along with penalties for deceptive advertising.
Africa’s crypto industry is expanding
By 2026, it is estimated that over 75 million users will engage with crypto in Africa, according to Statista, with a user penetration rate of 5.90%. The region’s total revenue from crypto is projected to reach $5.1 billion by 2026.
Stablecoins represent roughly 43% of the total transaction volume in Sub-Saharan Africa, as reported by Chainalysis on October 2, with Nigeria, South Africa, Ghana, Kenya, and Zambia leading the pack. Uganda ranks seventh.
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