Central bank’s Andrew Kawere wrote a letter to Kwame Rungunda, the chairperson of (Blockchain Association of Uganda) BAU, where he hinted that the considerations between the bank and the team from BAU impacted its position on the cooperation of crypto firms. Kawere likewise commended the proposal to exchange information.

According to the Ugandan central bank the conversations with the team from the BAU has prompted the bank to allow crypto firms participate in its regulatory sandbox. Hence, the central bank has mentioned members from the BAU that they could join the sandbox to figure out more about the BOU Sandbox Framework and the NPS Sandbox Regulations 2021.

Bank of Uganda welcomes your proposal to share knowledge with our technical teams on the crypto business models and whether some use cases are eligible for testing under the Regulatory Sandbox.

Kwame Rungunda has also been advised by Andrew Kawere to contact Alex Ochan, another central bank officer, to schedule technical decisions. 

In June 2021, the fintech regulatory sandbox was launched by the Bank of Uganda when its motto was the promotion of innovation in the financial sector, and at the same time attract funding for such fintech firms. It also aimed to provide innovators and regulatory authorities with the necessary resources and knowledge. 

After receiving the letter from the central bank, the BAU said in Tweet that it was looking forward to working with the central bank and other stakeholders to “proactively” mitigate the potential risks and to create more opportunities in Uganda.

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