Bank of Uganda Governor Dr Michael Atingi-Ego has urged the country to move swiftly to establish a robust regulatory framework for virtual assets, warning that Uganda’s cautious pace risks leaving it behind regional competitors.
Delivering the keynote address at the Kampala Blockchain Summit 2025 at Four Points by Sheraton, Atingi-Ego said Uganda stands at “a pivotal moment” in determining the future of its digital financial ecosystem.
“We meet at a moment when the decisions we make today will shape the structure, the safety, and the competitiveness of our economy for decades to come,” he told delegates. “The question for Uganda is no longer whether these technologies are important; it is whether we will be architects of their adoption or merely users of systems designed elsewhere.”
The Blockchain Association of Uganda, which hosted the summit, said it was “honoured to welcome” the Governor as keynote speaker for what organisers described as a landmark gathering of regulators, innovators, and policymakers.
‘Get Uganda out of the financial stone age’
Atingi-Ego pushed back against claims that the Central Bank has been resistant to innovation, insisting that its cautious approach is rooted in consumer protection, not hostility to technology.
“Our stance has not been one of obstruction, but of protection,” he said. “What is conservative about protecting millions of citizens from products they may not fully understand?” Then, in one of the strongest lines of his speech, he declared: “Colleagues, we must get Uganda out of the financial stone age.”
The Governor warned that the overwhelming shift of virtual asset activity to decentralised, unregulated platforms poses grave risks to consumers and the financial system.
“Virtual assets in Uganda present significant risks, stemming primarily from limited customer due diligence, weak governance structures, and informal shadow systems operating without oversight,” he said.
He added that the rapid rise of stablecoins — particularly for remittances and savings — could create serious macroeconomic pressures: “Their appeal is understandable, but their implications are serious.”
Learning from Kenya’s Regulatory Head Start
Atingi-Ego devoted part of his address to analysing Kenya’s newly launched virtual assets regulatory framework, noting that it has given Kampala a clear reminder of the need for urgency. “Kenya has clarity. We are still building it,” he said. “Kenya has begun licensing its first virtual asset service providers. We have zero.”
But he argued that Uganda could still turn this into an advantage. “Kenya has shown what is possible. Now Uganda must show what is achievable with intelligence, determination, and strategic focus,” he said. “Being second to legislate does not mean accepting second-tier status.”
Six Pillars for Uganda’s New Regulatory Framework
The Governor outlined six foundational pillars he believes should anchor Uganda’s virtual asset legislation: Licensing and fit-and-proper standards, Client asset protection, AML/CFT compliance, including the FATF Travel Rule, Cybersecurity and operational resilience, Market integrity and conduct and Transparency and data reporting.
“These pillars are not theoretical,” he said. “They are the backbone of every jurisdiction that wants to safely integrate virtual assets into its financial system.”
He posed a critical question to the audience: “How can Uganda position itself as a regional leader in virtual assets when Kenya is already ahead of us? Why will the virtual asset firm choose Kampala over Nairobi?”
Uganda’s competitive advantage, he said, must be built on strong legislation, world-class supervisory capacity, and a vibrant ecosystem of talent and infrastructure. “Uganda does not need to follow,” he said. “Uganda is ready to lead — but only if we move with urgency and quality simultaneously.”
Fireside Chat: Access, Innovation, and Smart Regulation
The summit’s inaugural Fireside Chat featured MTN Uganda CEO Sylvia Mulinge, Bank of Uganda Executive Director of Supervision Dr Tumubweinee Twinemanzi, and Blockchain Association of Uganda President Reginald Tumusiime.
Mulinge warned that Africa’s demographic dividend will become “a missed opportunity” without a dramatic boost in digital access. “Productivity is the next frontier,” she said. “Our first task is access. We must get our youth online and give them the skills to turn technology into opportunity.”
She pointed to new GSMA data showing a major usage gap: although 87% of Ugandans are covered by mobile broadband, only 29% use the internet. “Innovation without inclusion becomes commentary instead of transformation,” she said.
Regulation as an Enabler
Dr Twinemanzi argued that regulation should not be seen as a brake on innovation. “Innovation will always run faster,” he said. “But regulation does not have to slow it down.”
He cautioned against central banks assuming commercial roles in emerging sectors — including gold-backed products — and warned about the risks of USD-backed stablecoins: “If everyone begins trading in digital dollars, the shilling becomes sidelined. That undermines monetary sovereignty.”
Blockchain Must Solve Real Problems
Mulinge reminded participants that technology succeeds only when it addresses real-world needs. “Mobile money succeeded because it solved a real problem,” she said. “Blockchain and stablecoins must do the same.”
“From conversation to action”
In opening remarks, BAU President Reginald Tumusiime said the summit marked a historic transition. “This is the moment Uganda moves from conversation to implementation,” he said.
He praised the Governor’s leadership: “Your courage and vision have helped push this country into a new technological frontier.”
