Ethiopia is poised to move beyond its cryptocurrency ban, enacting a regulatory framework to legalize the use of cryptocurrencies. The National Bank of Ethiopia (NBE) has received approval from the Council of Ministers to draft legislation for a Central Bank Digital Currency (CBDC). The Information Network Security Administration (INSA) plays a key role in shaping regulations rather than outright control, signaling a shift towards a more open approach to crypto activities. While trading and crypto payments remain illegal, Ethiopia is actively transitioning away from the previous ban to establish a clear regulatory framework for digital assets. This change aligns with similar moves made by other emerging markets exploring CBDCs. Market impacts are likely to be gradual as detailed legal frameworks are developed, but this shift could have a significant impact on technological growth and financial markets in the long term. The future of Ethiopia’s crypto landscape remains uncertain, but developments related to CBDC development hold promise for stablecoin and non-sovereign digital asset integration.