Sh
Bank of Uganda Sandbox · Application in preparation

A digital shilling, fully reserved.
Built for the way Uganda already pays.

eShilling is a one-for-one, fully reserved Ugandan-shilling stablecoin issued under the National Payment Systems Act, 2020. No yield. No leverage. One job: move shillings cheaply, instantly, and reliably — under the Bank of Uganda's supervision.

Peg 1 : 1 eShilling : UGX
Settlement 3 – 5 sec deterministic finality
On-chain fee < UGX 1 per transfer
Reserves 100% UGX T-Bills + cash, in trust
01 The problem

Uganda runs Africa's busiest digital wallet — on rails that exclude the smallest transactions.

The median mobile-money transaction in Uganda is roughly UGX 20,000. The fee architecture punishes everything below it, and a single operator outage can take the country offline for a week.

→ Cost

Micro-payments are priced out.

Send tariff plus withdrawal tariff plus the 0.5% excise levy frequently exceeds 4% of a UGX 5,000 transfer. The 2018 mobile-money tax cut active usage by roughly 40%.

≈ 4 – 11%
Blended cost on small transactions
→ Continuity

Outages are systemic.

The January 2026 election shutdown took mobile money offline for around seven days, with lost telecom revenue alone estimated at UGX 24 billion. A public ledger keeps clearing when any single operator does not.

7 days
Most recent national outage
→ Reach

Interoperability is partial.

P2P fees were harmonised across MTN and Airtel in 2024, but merchant settlement, agent rebalancing, and bank rails remain fragmented. Aggregators bridge some of this — at additional cost.

Fragmented
Across providers, banks, agents
UGX 326T
Mobile-money transaction value, FY2024/25
52.9 M
Registered mobile-money subscriptions
8.4 bn
Transactions processed in FY2024/25
Mobile money is now 5× total commercial bank assets
02 How it works

Mint, transfer, redeem — fully reserved at every step.

eShilling does not invent a new monetary system. It puts a public-ledger settlement layer beneath the shilling — issued by a regulated entity, backed one-for-one, redeemable on demand at any participating bank.

01

Deposit

You deposit UGX into an eShilling trust account at a participating bank. The trustee confirms receipt under the Trust Deed.

02

Mint

The issuer mints exactly the equivalent quantity of eShilling tokens and credits them to your wallet. Mint = deposit, always.

03

Transfer

Send to any wallet, MTN MoMo number, or Airtel Money number through a licensed aggregator. Settles in 3-5 seconds. Fee: under one shilling.

04

Redeem

Redeem at any participating bank or aggregator. Tokens burn, UGX lands in your bank account or mobile-money wallet.

03 Reserves

The reserves are boring on purpose.

Held in segregated trust at multiple primary-dealer banks. Short-tenor. Bankruptcy-remote from the issuer. Attested monthly by a Big Four firm. Streamed in real time to the Bank of Uganda.

RESERVES 100%
UGX Treasury Bills ≤364-day tenor, primary & secondary market
65%
Cash deposits at three or more primary-dealer banks
20%
UGX Treasury Bonds 2 – 3 year tenor, capped to control duration
15%
Same-day liquidity buffer demand deposits, redeemable within 24 hours
≥ 10%
"

Regulate urgently, but wisely — building rails that protect users while letting innovation breathe.

The framing of Dr. Michael Atingi-Ego · Governor, Bank of Uganda · Kampala Blockchain Summit, Nov 2025
04 Governance

Engineered against the Governor's six pillars.

Every part of the design maps to a published regulatory expectation. Annex A of the whitepaper provides a line-by-line correspondence.

i

Licensing & fit-and-proper

Single-purpose entity. Minimum capital UGX 5 billion — five times the statutory floor. Independent-majority Board with section 24 fit-and-proper assessment.

ii

Client asset protection

100% segregated in a Trust held by a licensed Ugandan trustee. Bankruptcy-remote from the issuer. No proprietary trading with customer assets.

iii

AML/CFT & Travel Rule

FIA registration as accountable person. Full KYC/KYB at mint and redeem. Travel-Rule-ready architecture for when Uganda formally adopts.

iv

Cybersecurity & resilience

Aligned with the BoU Cyber Risk Management Guidelines (December 2024). ISO 27001 certification. Multi-chain redundancy. ≤24-hour incident reporting.

v

Market integrity

No insider issuance. No preferential treatment for any holder. Plain-language disclosures in English and Luganda. Published fee schedule.

vi

Transparency

Real-time read-only data feed to the Bank of Uganda from day one. Monthly Big-Four attestations. On-chain proof-of-reserves oracle.

05 Roadmap

From sandbox application to regional rail.

A phased build, with defined success criteria at each step and Bank of Uganda observers throughout.

Q2 2026
Foundation

Entity, trustee, primary-dealer bank engagement, sandbox application.

Q3 2026
Build

Smart contracts & audit, KYC/AML stack, supervisory feed prototype.

Q4 2026
Sandbox launch

Stellar pilot, 5,000 users, 50 merchants, first attestation published.

H1 2027
Scale

Hedera + Polygon deployments, USSD short code, 100,000 users.

H2 2027
Full licence

EMI licence at sandbox exit. UGX 100 billion in reserves.

2028+
Regional

EAC remittance corridors, regulated DeFi integrations.

06 Authors

A team built for this specific problem.

eShilling is co-authored by people who have done this work at scale, in regulated environments, with paying users.

Engineering & protocol

Mukama Caesar

Senior Software Engineer, Tether Operations Limited

Builds and operates the systems behind the world's largest fiat-backed stablecoin — a $135 billion liability, every token of it redeemable on demand. Brings the protocol, reserve management, and operations playbook that regulators expect.

Banking & supervision

Mbabazi Moses

Head of Innovation & Digitization, Pearl Bank

Led digital transformation inside a Ugandan tier-one bank under direct Bank of Uganda supervision. Brings the local regulatory relationships, banking integration know-how, and market understanding the project needs.

The whitepaper, in full.

Forty pages: the problem, the design, the reserve architecture, the regulatory pathway, the financial model, every assumption, every risk, every mitigation — and a line-by-line mapping to the Governor's six pillars.