CBDC Consultations

One of the key functions of the Bank of Uganda is to issue legal tender in form of bank notes and coins to be used as a store of value and mode of payment among other functions. As the landscape of global finance evolves rapidly, spurred by technological advancements and changing consumer preferences, central banks around the world are increasingly considering the potential benefits and implications of Central Bank Digital Currencies (CBDC) adoption as legal tender. A CBDC is a digital form of a country’s banknotes and coins. Broadly there are two types of CBDCs, wholesale[1] and retail[2]. A CBDC can be used in the same manner as banknotes and coins.

In line with this trend, the Bank of Uganda has issued a consultation paper on CBDCs. The Bank of Uganda is yet to decide on the issuance of a CBDC and plans to engage with relevant stakeholders on the benefits, opportunities and risks associated with such a move.

The consultation paper and this survey are part of the stakeholder engagement process. The survey seeks to gather views and opinions regarding the possibility of introducing a CBDC by the Bank of Uganda. The responses to the questions will assist in assessing the readiness, implications, and potential benefits of issuing a CBDC, as well as address any challenges or considerations that may arise.

Your participation in this survey is greatly appreciated and will contribute to the Bank’s efforts in fostering a robust and inclusive financial ecosystem in Uganda. Thank you for taking the time to share your thoughts with us.