Cryptoeconomy: Uganda leans on Temtum Group for CBDC rollout

Uganda is moving towards blockchain adoption for its central bank digital currency (CBDC), tax revenue collections and mobile money after holding discussions with Temtum Group.

The Temtum Group is a specialist blockchain and cryptocurrency solutions and protocol company, and the enterprise behind the Tem digital token which the Ugandan government could adopt to power up its CBDC.

An official tweet from Uganda’s government posted this week reads: “The Minister of Finance, Planning and Economic Development, Hon Matia Kasaija, on 10th March this year had several engagements with the Temtum Group in Kampala about the Central Bank Digital Currency.”

Kasaija confirmed the meetings and said the parties discussed “digital currencies and CBDC technology as well as revenue tax collection and mobile money” issues.

“We are impressed with their technology,” the Minister posted on Twitter.

See more: How Africa can navigate growing monetary policy challenges

Nigeria is the first African country to launch a CBDC, the eNaira that analysts say will likely gain traction this year. Ghana is also advancing its prospects to introduce the e-Cedi.

Kenya’s central bank has said that low smartphone uptake could work against speedy introduction of a CBDC in the East African country.

Uganda has made regulatory advances to allowing blockchain and cryptocurrency to blossom in the country. Although mobile money has taken root in Uganda, a country with 32 million mobile payments accounts out of a population of 45 million, the government is deepening its preparedness for a CBDC.

The Financial Intelligence Authority of Uganda recently amended Anti-Money Laundering regulations to embrace digital and virtual asset providers such as those offering cryptocurrencies.

Temtum Group said it looks forward to advancing the topics and exploring opportunities within blockchain, mobile money, digital currency, technology and digital banking.