Uganda's CBDC Aims to Solve Low Adoption with Real-World Asset Tokenization

Uganda has launched a Central Bank Digital Currency (CBDC) pilot as part of a $5.5 billion initiative to build the world's most advanced tokenized economy, according to a joint announcement by Global Settlement Network (GSN) and Ugandan developer Diacente Group. The project aims to digitize real-world infrastructure assets, including agro-processing hubs, mining operations, and solar energy plants, and integrate them into a blockchain-based system. This effort is backed by $5.5 billion in real-world infrastructure and aligns with Uganda's Vision 2040, the African Union's Agenda 2063, and the African Continental Free Trade Area (AfCFTA) goals.

The CBDC, a digital version of the Ugandan shilling, is built on GSN's permissioned blockchain and supported by government treasury bonds. It will enable secure, low-cost transactions for over 40 million Ugandans via smartphones and USSD, a text-based service accessible on basic mobile phones. The system incorporates full Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to ensure compliance with local and international standards. By linking the digital currency to tangible economic activities, Uganda aims to address challenges faced by earlier CBDCs, such as Nigeria's eNaira, which struggled with low adoption due to a lack of real-world utility.

Tokenization will extend to physical assets, converting them into digital tokens that can be traded or used as collateral. This approach is designed to attract international capital, reduce reliance on intermediaries, and create transparent ecosystems for local industries. Edgar Agaba, Chairman of Diacente Group, emphasized that the project "creates transparent, tech-driven ecosystems that attract new capital, empower local industries, and scale sustainable growth from the ground up". The initiative is projected to generate over one million jobs and up to $10 billion in annual exports by 2026.

The pilot is being implemented in the Karamoja Green Industrial and Special Economic Zone (GISEZ), a flagship project under Uganda's Vision 2040 plan. This region, rich in natural resources but historically underdeveloped, will serve as a testbed for the digital infrastructure. Ryan Kirkley, Co-Founder of GSN, stated the project's goal is to "build infrastructure that goes beyond theory-a programmable economy grounded in real assets, regulatory collaboration, and mass accessibility". The digital shilling will facilitate instant payments for farmers, traders, and small businesses, ensuring value remains within the local economy.

The initiative reflects broader trends in Africa, where nations like Nigeria, Ghana, and South Africa have explored CBDCs to enhance financial inclusion and trade efficiency. Uganda's approach, however, distinguishes itself by integrating tokenization with national development strategies. The project also aligns with Sub-Saharan Africa's growing crypto adoption, which Chainalysis estimates will reach over 75 million users by 2026.

Source: [1] Global Settlement Network and Diacente Group Press Release (https://www.globenewswire.com/news-release/2025/10/08/3163142/0/en/Largest-On-Chain-Economy-is-Being-Built-in-Africa-with-5-5B-in-Real-World-Assets-by-Global-Settlement-Network-and-Diacente.html)

[2] Cryptotimes.io (https://www.cryptotimes.io/2025/10/09/uganda-launches-cbdc-pilot-for-tokenized-economy/)

[3] Tech-ish.com (https://tech-ish.com/2025/10/08/a-new-partnership-aims-to-put-5-5-billion-of-ugandan-infrastructure-on-the-blockchain/)

[4] Cryptonews.net (https://cryptonews.net/news/finance/31759088/)

[5] Techeconomy.ng (https://techeconomy.ng/global-settlement-network-diacente-group-tokenised-economy-uganda/)

[6] Cryptopolitan.com (https://www.cryptopolitan.com/uganda-cbdc-pilot-kenyas-crypto-bill/)

[7] The Coin Rise (https://thecoinrise.com/uganda-launches-cbdc-pilot-as-kenya-nears-crypto-regulation-details/)

[8] TechCabal.com (https://techcabal.com/2025/10/08/uganda-digital-infrastructure-karamoja/)

[9] Invezz.com (https://invezz.com/news/2025/10/09/uganda-launches-cbdc-pilot-as-part-of-5b-tokenization-push/)

[12] IMF Report (https://www.imf.org/en/Publications/WP/Issues/2023/05/16/Nigerias-eNaira-One-Year-After-533487)

[13] Chainalysis Report (https://www.chainalysis.com/reports/)