‘Time to get Uganda out of financial stone age,’ says BoU Governor

Bank of Uganda Governor, Dr Michael Atingi-Ego, has expressed the government’s determination to roll out a comprehensive regulatory framework for the Blockchain industry in the country, following years of pushing from industry players.

The Governor, while delivering the keynote address at the 3rd Edition of the Kampala Blockchain Summit on Tuesday at the Four Points by Sheraton Kampala, noted that Uganda now stands at a crossroads—either to lead Africa’s digital financial transformation or trail behind systems designed elsewhere.

“We are living in a time when a month in digital innovation can alter the entire business model. Tech once considered theoretical such as tokenised securities, and blockchain cross border payments are now operating in advanced markets,” he said.

“We need to get Uganda out of the financial stone age. The question for Uganda is no longer whether these technologies matter; it is whether we will be architects of their adoption or mere users of systems designed elsewhere."

Regarding the delayed operationalisation of the regulatory framework, Dr Atingi-Ego clarified long-held perceptions that Uganda has been hesitant about digital assets. The Bank of Uganda’s approach, he said, was not resistance but “prudence,” emphasising the need to shield millions from risks they may not fully understand.

“For years, we said publicly that virtual assets are not legal tender and participants do so at their own risk,” he noted. “Innovation must not outpace consumer protection.”

Over the past six years, the Bank has collaborated closely with other regulators and the Blockchain Association of Uganda to build technical capacity and understand global standards. 

The Financial Intelligence Authority recently concluded a national virtual asset risk assessment, while Cabinet has discussed matters now before the Law Reform Commission to create a coherent regulatory environmen

According to the Governor, “regulatory ambiguity is not tenable, but equally, total abolition is not either.”

The Summit—held under the theme ‘From Regulation to Growth: Uganda as a Regional Hub for Virtual Assets’—brought together regulators, innovators and industry leaders.

In his opening remarks, Reginald Tumusiime, President of the Blockchain Association of Uganda, described the Governor’s presence as “a signal that Uganda is ready to move from conversation to action.” 

He revealed that the Association’s journey since 2019 was one of persistent engagement, not confrontation.

Their aim, he said, has always been “a regulatory framework that protects consumers while enabling innovation.” 

Tumusiime noted the growing clarity that blockchain offers real-world solutions, especially as Sub-Saharan Africa’s working population rapidly expands. He cited examples such as cross-border payments settling in seconds, remittance costs falling from 7% to under 1%, and millions of unbanked people accessing digital financial services.

In a fireside chat, Sylvia Mulinge, CEO of MTN Uganda, highlighted a critical missing link: digital inclusion.

“Eighty-seven per cent of Ugandans are covered by mobile broadband, but only 29% are actually online,” she said. Without addressing this usage gap, she warned, innovation risks becoming a tool for online commentary rather than productivity.

“The first step is access,” she emphasised. “Only then can innovation drive growth.”

Regulatory concerns were further echoed by Dr Tumubweinee Twinemanzi, Executive Director for National Payment Systems. He cautioned that widespread use of stablecoins like USDT for domestic trade could undermine Uganda’s monetary sovereignty.

“If the bulk of trade is using US-backed stablecoins, then effectively the issuer of the dollar determines Uganda’s monetary policy,” he warned.

Other speakers, including representatives from the CFA Institute, Capital Markets Authority and Uganda Revenue Authority, echoed the need for balanced oversight as the country prepares for a new digital financial era.

As the Summit progresses, one message is clear: Uganda is ready to step boldly into the future—carefully, collaboratively, and decisively.