Home Business Mutebile Legacy: Gov’t in Process of Approving Use of Cryptocurrency

Mutebile Legacy: Gov’t in Process of Approving Use of Cryptocurrency

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Government is in the process of approving the use of cryptocurrency in Uganda, DaParrot has learned.

For years now, the government has on several occasions warned Ugandans from engaging themselves in cryptocurrency since it’s not yet approved as legal tender In the Jun 1 letter to Mr. Kwane Rugunda, the Chairperson of Blockchain Association of Uganda, Andrew Kawere seen by DaParrot,

The AG Director of the National Payment Systems at Bank of Uganda said that they are reviewing his proposal for Uganda’s Crypto Business Participating in the Regulatory Sandbox.

“Reference is made to your letter dated May 5, 2022. Further reference is made to the deliberations held at the meeting between the team from the Blockchain Association of Uganda and officials from Bank of Uganda held on Wednesday, May 4, 2022,” reads part of the letter,

“Bank of Uganda welcomes your proposal to share knowledge with our technical teams. on the crypto business models and whether some use cases are eligible for testing under the Regulatory Sandbox,” it adds

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Kawere in the letter told Rugunda please get in touch with Mr. Alex Ochan on email – aochanabou.or.ug or through the Fintech Office email fintechoffice@bou.or.ug for the scheduling of the technical discussions.

“In the meantime, we recommend that your members acquaint themselves with the NPS Sandbox Regulations 2021 and the Bank of Uganda Sandbox Framework which are available on the BOU website,” he said

The said Regulatory Sandbox Framework was launched by former BOU Governor, Prof Emmanuel Tumusiime Mutebile on June 15, 2021.

A Regulatory Sandbox is a set of rules and requirements that allows innovative financial solutions, for example, fintech startups, to be tested in a live controlled environment with BoU’s oversight and subject to the necessary safeguards.

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This was Launched Pursuant to Section 16 of the National Payment Systems Act, 2020, and the National Payment Systems (Sandbox) Regulations, 2021.

“So far, M/s Wave Transfer Limited received approval to test Quick Response (QR) technology under the Sandbox arrangement on April 12, 2021. Bank of Uganda invites more firms to develop and test financial innovations under the Regulatory Sandbox,” Mutebile said last year.

The Regulatory Sandbox Framework, Mutebile said would promote financial services innovation, attract capital and funding for fintech firms and provide shared learning opportunities for the innovators and regulators.

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“This is expected to promote uptake of electronic payments, digital financial services, and financial inclusion in general,”

The ongoing approval come at a time when financial firms have started exiting Uganda.

WorldRemit for example an institution that deals so much in Cryptocurrency announced closing businesses in Uganda starting this mid-June.

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