The National Bank of Rwanda (NBR) has warned the public against engaging in cryptocurrency transactions involving the Rwandan Franc, citing legal restrictions and financial risks.

In a statement released this week, the central bank said it has observed an increase in social media promotions claiming that people can buy and sell crypto-assets using the franc, often with promises of high returns.

NBR clarified that under current laws, the Rwandan Franc remains the only legal tender in the country. It added that crypto-assets are not recognized as legal tender and cannot be used as a means of payment.

The bank also stated that licensed financial institutions are not allowed to convert the franc into crypto-assets or facilitate such transactions. It further noted that peer-to-peer crypto trading involving the franc, including acting as a broker or intermediary, is not authorized.

The central bank urged the public to avoid crypto-related transactions involving the Rwandan Franc, warning that such activities carry significant financial risks and are not protected under existing regulations.

NBR said individuals who choose to engage in these transactions do so at their own risk and may have no recourse in case of financial loss.

The bank added that these measures will remain in place until a comprehensive regulatory framework for crypto-assets is established.