Africa’s Crypto Adoption Speeds Up
Africa continues to strengthen its position in the global adoption of cryptocurrencies and digital assets. Uganda has launched a pilot project for a central bank digital currency (CBDC), while neighboring Kenya is just one step away from approving a comprehensive law regulating the crypto industry.
Digital shilling backed by government bonds
Uganda’s CBDC is a digital version of the Ugandan shilling operating on the permissioned Blockchain of Global Settlement Network (GSN), backed by government bonds. The pilot program was officially announced on Wednesday in collaboration with local developer Diacente Group.
The digital currency is accessible via smartphones and complies with both domestic and international regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. The tokenization initiative, of which the CBDC is part, aims to digitalize key economic sectors such as agro-industrial hubs, mining operations, and solar power plants.
“We aim to unlock long-term value for our people and the region,” said Diacente Group chairman Edgar Agaba.
Uganda follows a trend first started by Nigeria, which launched its own digital currency back in 2021. Similar projects are underway in Ghana and South Africa, while Egypt plans to roll out its CBDC by 2030. Kenya and Rwanda remain in the research and consultation phase.
Kenya finalizes crypto legislation
Alongside Uganda’s pilot, Kenya has made a major step forward. Its Virtual Asset Service Provider (VASP) Bill passed its third reading in parliament on Tuesday and now awaits President William Ruto’s signature. Introduced in January, the framework establishes licensing, consumer protection, and regulatory oversight for exchanges, wallets, brokers, and token issuers.
The Central Bank of Kenya will oversee payment and custodial functions, while the Capital Markets Authority will regulate investment and trading activities.
Africa is the third-fastest growing crypto region
According to a September report from Chainalysis, sub-Saharan Africa processed over $205 billion in crypto transactions between July 2024 and June 2025, ranking third globally in adoption growth.
Stablecoins account for about 43% of total transaction volume. The largest markets are Nigeria, South Africa, Ghana, Kenya, and Zambia — with Uganda ranking seventh.
Data from Statista projects that by 2026, over 75 million users will enter Africa’s crypto ecosystem, generating total revenues of around $5.1 billion.
Sources:
https://www.youtube.com/live/Lp0r3wYv2Zk
https://www.chainalysis.com/blog/subsaharan-africa-crypto-adoption-2025/
https://odi.org/en/insights/cbdcs-in-africa-catalysts-for-financial-sector-deepening-and-inclusion/
https://bowmanslaw.com/insights/kenya-the-virtual-assets-service-providers-bill-2024/
https://www.chainalysis.com/blog/subsaharan-africa-crypto-adoption-2024/
https://cointelegraph.com/news/uganda-cbdc-tokenization-crypto-regulation-kenya