Bank of Uganda agrees to have crypto in its regulatory sandbox
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Loading... - Naomi Mukasa
- 15 Jun 2022
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Bank of Uganda (BoU) has stated that it is open to considering crypto firms into the bank’s regulatory sandbox.
The Director of Bank of Uganda’s National Payments Service Andrew Kawere passed the information to the chairperson Blockchain Association of Uganda (BAU) who received the news with positivity.
Part of the email to BAU read;
Your plea to peer learning with our technical staff on crypto-economic models is granted with positivity by BoU. We have investigated whether or not the regulatory sandbox is the right environment for testing certain use cases.
Andrew Kawere.
The term live trial of innovative products and services in a controlled setting typically refers to the use of a “Regulatory Sandbox.”
Regulatory sandboxes are becoming popular as the landscape of the banking sector in Africa continues to change.
The Bank of Uganda (BoU) announced in 2021 that it would be developing a regulatory sandbox framework.
This regulatory sandbox framework offers rules and procedures that allow the test of financial innovations in a live-controlled system.
The BoU identifies the following functions associated with the sandbox:
· Boost financial sector innovation.
· Find ways to bring in investment money for financial technology companies.
· Make chances for collaborative learning between entrepreneurs and regulators available.
In a circular sent out in May this ye lolar, the Central bank warned all payment merchants, particularly mobile money operators, to reject cryptocurrency.
Many Central Banks have publicly announced regulatory sandboxes in Africa. Some countries include South Africa, Kenya, Ghana, and Zimbabwe.
Uganda’s hard stance on crypto
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