While Bank of Tanzania (BOT) executives continue to stress the central bank’s desire to heed the government’s call to prepare for cryptocurrencies, some economists insist that Tanzania lacks the resources for it to adopt such digital currencies.
Economists: Tanzania is a bad candidate
In their view, which was published by Citizen after the latest BOT update, opponents of cryptocurrency in Tanzania argue that the lack of resources makes it difficult to participate in global trade.
For example, the Citizen report quotes Haji Sembuja, a professor at Zanzibar State University, who suggests that Tanzania’s economic situation makes it difficult for the country to adopt cryptocurrency. Simbuja explained:
The development of our economies is a full function of the development of world international money and commodity markets. I have not yet accepted a tool that will never benefit the majority of people. It is not only because of limited knowledge, but also because of the level of economic development.
To back up his assertions, Semboja points to the fact that countries that have expressed interest in virtual currencies have gone so far as to “establish a political, regulatory and institutional framework to meet this.”
Encryption adoption in Tanzania
Another economist and trader, Donath Olomi, has been quoted as expressing his concerns about the growing adoption of cryptocurrencies in the country as such a trend could indicate that Tanzanians want to “keep their fortunes out of the government’s sight.” He argues that when “a large part of wealth is not under the control of the government, a country cannot use it to influence monetary policy.”
Meanwhile, an anonymous economist who claims to see similarities between investing in cryptocurrency and betting has suggested that it is “too early to think about cryptocurrency.” However, unlike his fellow economists, the unnamed expert said that cryptocurrencies will only become effective once they have the support of all central banks.
Do you agree that Tanzania’s economic situation makes it difficult for the country to adopt cryptocurrencies? Tell us what you think in the comments section below.
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Emerging Markets, Bank of Tanzania, Central Bank, Commodity Markets, Cryptocurrencies, Cryptocurrencies, Donath Olumi, Economic Development, Haji Sembuja, Monetary Policy, Zanzibar State University
