Uganda Unleashes $5.5B Tokenization Push and CBDC Pilot as Kenya Finalizes Crypto Bill

Core Insights - Uganda has initiated a $5.5 billion blockchain project for real-world asset tokenization alongside its first central bank digital currency (CBDC) pilot [1][2] - The project aims to tokenize physical infrastructure assets across various sectors, including food production, mining, renewable energy, and trade [1] - The CBDC will be backed by Ugandan treasury bonds and will operate on a permissioned blockchain, ensuring compliance with international standards [2][4] Project Details - The initiative is led by the Global Settlement Network (GSN) and Uganda's Diacente Group, with a focus on creating a programmable economy linked to real assets [3] - The CBDC will be accessible via smartphones and USSD technology, enabling over 40 million Ugandans to use a secure digital currency [4] - The project aligns with Uganda's Vision 2040 and the African Union's Agenda 2063, supporting the Karamoja Green Industrial and Special Economic Zone [5] Economic Impact - The project is expected to create over one million jobs and generate up to $10 billion in annual exports, positioning Uganda as a regional digital and industrial hub [6] - The integration of tokenization and CBDCs is anticipated to attract new capital and empower local industries, driving sustainable growth [6] Regional Context - Neighboring Kenya is advancing its own digital finance regulation with the Virtual Asset Service Providers (VASP) Bill, indicating a broader trend in East Africa towards regulated digital economies [2][7]