Uganda has launched a central bank digital currency (CBDC) pilot as part of a broader tokenization effort across the African nation, while its neighbour Kenya is on the verge of enacting a crypto regulation bill.
Blockchain financial infrastructure company the Global Settlement Network (GSN) has partnered with Ugandan developer Diacente Group in an initiative to tokenize $5.5 billion of real-world assets, which also includes a CBDC pilot, the companies announced on Wednesday.
It comes as Kenya’s Virtual Asset Service Providers (VASP) Bill passed through the country’s parliament on Tuesday and now awaits President William Ruto’s signature to become law.
Sub-Saharan Africa, regions south of the Sahara, which include Uganda and Kenya, were flagged as the third-fastest growing region for crypto adoption in a September report from blockchain data platform Chainalysis, after $205 billion in onchain value was received between July 2024 and June 2025.
Uganda CBDC backed by treasury bonds
Uganda’s CBDC, a digitized version of the Ugandan Shilling, has been deployed on GSN’s permissioned blockchain, backed by Ugandan treasury bonds, and be accessible through a smartphone, according to GSN and the Diacente Group.
The pilot also adheres to both local and international compliance standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
Meanwhile, the tokenization effort will focus on digitizing key flows across major sectors, including physical infrastructure such as agro-processing hubs, mining operations, and solar plants.
Edgar Agaba, the chairman of Diacente Group, said the initiative hopes 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 think tank Overseas Development Institute. Several other countries, such as Ghana and South Africa, have also piloted CBDCs. Egypt has a launch date of 2030, while Rwanda and Kenya are still in the research and public consultation phase.
Kenya’s crypto bill passes final hurdle
Kenya’s VASP bill, first introduced in January, establishes licensing, consumer protections, and a framework for exchanges, brokers, wallet operators, and token issuers. The bill passed the country’s parliament on Tuesday after the third reading and now awaits the president’s signature to become law.
Under the legislation, the Central Bank of Kenya will oversee payment and custody functions, while the Capital Markets Authority will regulate investment and trading activities.
Related: African economies show high potential for digital asset adoption
There are also KYC and AML provisions in line with the standards of the intergovernmental body, the Financial Action Task Force, and rules against deceptive advertising, along with fines and other penalties.
Africa’s crypto industry is growing
It’s estimated that over 75 million users will be in the crypto space in Africa by 2026, according to online data platform Statista, with a user rate of 5.90%. The total revenue from the continent is projected to hit $5.1 billion by 2026.
Stablecoins account for approximately 43% of the Sub-Saharan African region’s total transaction volume, Chainalysis reported on Oct. 2, with Nigeria, South Africa, Ghana, Kenya and Zambia making up the top five, while Uganda was in 7th.
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