The National Bank of Rwanda (NBR) has warned the public that crypto payments and trades using the local currency remain illegal after Bybit added support for the Rwandan franc on its peer-to-peer platform on Friday.
“Crypto-assets are NOT authorized for payments, FRW conversion, or P2P trading involving FRW under the current framework,” the central bank posted on X on Sunday, urging citizens to avoid crypto transactions due to “serious financial risks and no recourse in case of loss.”
Bybit Launches Without Regulatory Clearance
The warning was issued in direct response to an X post from Bybit on Friday stating that the Rwandan franc could be used to buy and sell crypto through its P2P service. The exchange’s announcement made no mention of local regulatory approval and included promotional incentives for new users and merchants.
In a separate statement, the NBR emphasized that the FRW “remains the only legal tender in Rwanda” and that “NBR-licensed financial institutions are prohibited from converting FRW into crypto-assets or vice versa.” Bybit has not publicly responded to the central bank’s warning.
Rwanda’s Restrictive Crypto Stance Since 2018
Rwanda has maintained a restrictive position on private crypto use since 2018, when the central bank first declared cryptocurrencies illegal for domestic transactions. The stance has evolved gradually, with regulators now pursuing a licensing-based framework rather than an outright ban.
In March, Rwanda’s Capital Market Authority released a draft regulatory framework for virtual asset service providers, describing it as a step toward “responsible innovation.”
The bill, which Rwanda’s Cabinet approved on March 4, 2026, seeks to prohibit crypto as legal tender and to ban crypto mining, mixer services, and tokens pegged to the FRW. Under the draft law, unlicensed operators face fines of up to 30 million FRW and up to five years in prison.
CBDC Ambitions Underscore Sovereignty Concerns
Rwanda is simultaneously developing a central bank digital currency, the e-franc rwandais, which completed its proof-of-concept stage in February 2026. A 12-month domestic pilot is underway before international cross-border testing begins.
The NBR’s pushback against Bybit reflects broader concerns that unregulated foreign platforms attaching the FRW to crypto markets could undermine the CBDC effort and erode public trust in the national currency.
Data from blockchain analytics firm Chainalysis shows Rwanda ranks low in crypto adoption across 2024 and 2025, with transaction volumes trailing far behind regional peers such as Nigeria and South Africa.
Whether Bybit removes FRW voluntarily or awaits formal enforcement could set a precedent for how other foreign exchanges approach East African markets.
