CBDC | A Private Ugandan CBDC Pilot Initiative, Backed by Ugandan Treasury Bonds, Gets Underway

Two private companies have announced they are piloting a Ugandan Shilling (UGX) Central Bank Digital Currency (CBDC). The partnership is between:

• Global Settlement Network (GSN) – pioneers blockchain infrastructure that powers secure, compliant, and interoperable digital asset ecosystems. Its proprietary GSX Protocol enables the seamless tokenization and management of real-world assets, bridging traditional and decentralized finance.
• Diacente Group – a Ugandan company developing green industrial ecosystems and strategic management of industrial assets to drive socio-economic transformation in Africa. Through the Karamoja Green Industrial & Special Economic Zone, Diacente drives inclusive growth, infrastructure modernization, and industrial transformation aligned with Uganda’s Vision 2040 and the goals of the African Continental Free Trade Area (AfCFTA).

As part of the rollout, Uganda’s first Central Bank Digital Currency (CBDC) is being piloted on GSN’s permissioned blockchain and backed by Ugandan treasury bonds. The pilot seeks to deliver frictionless settlement and financial inclusion across East Africa, beginning in Uganda.

The tokenization effort will cover major infrastructure projects – from agro-processing hubs and mining operations to solar power plants — digitizing value creation and trade in sectors critical to Uganda’s growth. By leveraging blockchain technology, the partnership will allow individuals, institutions, and governments to directly participate in economic activity, attract global capital, and reduce dependence on intermediaries.

The digital Ugandan Shilling (UGX) will operate within a regulated environment, adhering to KYC/AML standards and accessible via smartphones and USSD. This ensures that over 40 million Ugandans – many of them mobile-first users – can securely transact using a digital currency for the first time.

“We’re building infrastructure that goes beyond theory – a programmable economy grounded in real assets, regulatory collaboration, and mass accessibility,”

– Ryan Kirkley, Co-Founder, Global Settlement Network

“This partnership goes beyond infrastructure; it’s about unlocking long-term value for our people and our region,”

– Edgar Agaba, Chairman, Diacente Group

The initiative aligns with Uganda’s Vision 2040, the African Union’s Agenda 2063, and the goals of the African Continental Free Trade Area (AfCFTA). The Karamoja Green Industrial and Special Economic Zone (GISEZ) – a national flagship under Uganda’s Regional Development Plan (2025–2035) – anchors the project, expected to create over one million jobs and generate up to $10 billion in annual exports.

By combining tokenization, CBDC integration, and real-world asset backing, Uganda and its partners are setting a precedent for how emerging markets can harness digital finance to power industrial growth, investment, and inclusion – transforming blockchain from speculation to infrastructure.

In 2022, as reported by BitKE, the Bank of Uganda (BoU), which is the Central Bank of Uganda, joined a slew of its African counterparts in officially announcing plans for a Central Bank Digital Currency (CBDC). The bank’s official twitter page shared the news revealing that it was exploring the implementation of a CBDC.

According to the Bank’s executive director of operations, Charles Abuka, BoU is exploring the necessity of the CBDC and ‘what issues it is going to help resolve.’

In the same year, it was reported that Nigeria’s experience in launching the first CBDC in Africa, and among the first in the world, was being sought by officials from the Bank of Uganda. In a tweet, the Central Bank of Nigeria (CBN) indicated that Governor Godwin Emefiele had advised visiting Bank of Uganda officials on the establishment of a Central Bank Digital Currency (CBDC).

While this latest CBDC initiative does not mention any involvement or engagement with the Bank of Uganda (BoU) and seems more like a private sector initiative, it will be interesting to see if the pilot is a success and whether BoU will comment on it.

Stay tuned to BitKE for deeper insights into the African CBDC space.

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