Uganda's central bank weighs issuance of digital currency

A representations of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration

KAMPALA (Reuters) - Uganda's central bank is considering whether to issue a digital currency and has not banned cryptocurrencies, but has concerns about risks from the technology including consumer protection and financial inclusion, a senior bank official said on Friday.

"Bank of Uganda is currently doing preliminary studies on whether or not a central bank digital currency should be considered ... and especially explore what policy objectives it would address," Andrew Kawere, the bank's director for national payments, told Reuters in an interview.