Rwanda Reiterates Ban on Franc-to-Crypto Trading After Bybit Move

Rwanda’s central bank has reiterated that crypto transactions using the national currency remain illegal, following Bybit’s move to enable franc-based peer-to-peer trading on its platform.

Key Points

• Bybit enabled franc-based peer-to-peer crypto trading on its platform.
• The National Bank of Rwanda stated that crypto transactions with the franc are prohibited.
• Crypto-assets cannot be used for payments, conversions, or P2P trading involving FRW.
• Licensed financial institutions cannot facilitate crypto-franc conversions.
• The Rwandan franc remains the country’s only legal tender.
• NBR warned that crypto users face financial risks with no legal protection against losses.

Central Bank Pushes Back on Bybit Update

On Friday, Bybit announced that users could now buy and sell cryptocurrencies using the Rwandan franc (FRW). The update was quickly met with a response from the National Bank of Rwanda (NBR), which issued a public notice on Sunday via X.

In its statement, the central bank made it clear that such transactions are not permitted under current regulations. Moreover, it stressed that crypto-assets cannot be used for payments, currency conversion, or P2P trading involving the franc. The NBR also warned users of the financial risks, emphasizing that there is no legal protection against losses.

Legal Status of the Franc and Financial Restrictions

In addition, the central bank reiterated that the Rwandan franc remains the country’s only recognized legal tender. It also confirmed that licensed financial institutions are prohibited from converting the franc into cryptocurrencies or facilitating related transactions.

These measures reflect Rwanda’s long-standing cautious approach to digital assets. Indeed, since 2018, authorities have limited crypto-related activities to protect monetary stability and maintain control over the financial system.

Supporting this broader context, data from Google Finance shows the franc has lost around 60% of its value since 2010.

Digital Currency Plans and Regulatory Developments

Despite its strict stance on private cryptocurrencies, Rwanda is actively exploring a state-backed digital alternative. The country is currently developing a central bank digital currency (CBDC), the e-franc rwandais, which remains in the proof-of-concept stage and could move to pilot testing if progress continues.

At the same time, regulators are working on a formal framework for the crypto sector. In March, the Capital Market Authority introduced a draft proposal to oversee virtual asset service providers while supporting responsible innovation.

According to the proposal, cryptocurrencies would not be recognized as legal tender. The draft also outlines bans on crypto mining, mixer services, and tokens linked to the franc. However, it opens the door for licensed firms to operate under regulatory supervision, signaling a controlled approach rather than a complete prohibition.

Low Crypto Adoption in Rwanda

Given this regulatory backdrop, crypto usage in Rwanda remains relatively limited. Data from Chainalysis shows that transaction volumes in 2024 and 2025 were modest compared to other African markets.

By comparison, countries such as Nigeria and South Africa have seen significantly higher levels of adoption. This contrast highlights Rwanda’s cautious stance and its impact on market growth.