Uganda Launches $5.5B Tokenization and CBDC Pilot as Kenya Advances Crypto Regulation

Uganda has initiated one of Africa's most ambitious blockchain projects, a $5.5 billion real-world asset tokenization effort coupled with the country's first central bank digital currency (CBDC) pilot. This initiative, led by the Global Settlement Network (GSN) and Uganda's Diacente Group, will tokenize physical infrastructure assets across sectors like food production, mining, renewable energy, and trade. The CBDC, known as the digital Ugandan shilling, is backed by Ugandan treasury bonds and deployed on GSN's permissioned blockchain, complying with international KYC and AML standards.

Ryan Kirkley, co-founder of GSN, emphasized the project's practical impact, stating, "We're building infrastructure that goes beyond theory — a programmable economy grounded in real assets, regulatory collaboration, and mass accessibility." The CBDC is accessible via smartphones and USSD technology, potentially reaching over 40 million Ugandans and supporting Uganda's Vision 2040 and the African Union's Agenda 2063. The Karamoja Green Industrial and Special Economic Zone (GISEZ) is central to this rollout, expected to create over one million jobs and generate up to $10 billion in annual exports.

Concurrently, Kenya is advancing its Virtual Asset Service Providers (VASP) Bill (N.A. Bill No. 15 of 2025) to the third reading stage, with approval from President William Ruto pending. The bill grants oversight to the Central Bank of Kenya (CBK) and Capital Markets Authority (CMA), aiming to regulate digital assets, combat money laundering, and foster innovation. Kuria Kimani, Chair of the Finance and National Planning Committee, highlighted its role in protecting Kenya's monetary system.

This regulatory momentum aligns with broader trends in Sub-Saharan Africa, which saw $205 billion in on-chain value from July 2024 to June 2025, ranking third globally for crypto growth. According to Chainalysis, stablecoins account for 43% of transaction volume in the region. Ripple has expanded its RLUSD stablecoin into Africa through partnerships with fintech platforms like Chipper Cash, VALR, and Yellow Card, testing it in remittance and climate-insurance applications. Statista projects Africa's crypto user base to exceed 75 million by 2026, with estimated revenue of $5.1 billion, underscoring the region's rising influence in the digital economy.