Tanzania is moving closer to launching a central bank digital currency (CBDC) that offers residents of the country a “safe alternative”, the central bank governor has said. However, no date for the launch of the digital currency has been given.
Growing interest in cryptocurrencies
According to Florens Luoga, the Governor of the Central Bank of Tanzania, his country is getting closer to launching a Central Bank Digital Currency (CBDC). Once launched, the CBDC is expected to counter growing interest in privately issued cryptocurrencies, according to a report.
In remarks made during an interview, Louga suggested that the Bank of Tanzania (BOT) is also preparing for the launch of a CBDC as it cannot ignore advancements in money technology. The governor claimed that BOT’s digital currency will provide users with a safer alternative to cryptocurrencies. He said:
It is important for us to provide a central bank digital currency as a safe alternative, as many people are affected by cryptocurrency speculators.
A global phenomenon
The governor added that the central bank has since sent officials to countries whose respective CBDCs have progressed. While many central banks have touted CBDCs as an alternative to cryptocurrencies, few have actually piloted their respective centralized assets. In Africa, only the Nigerian central bank has so far launched a CBDC, while a few others are still in the exploratory or research stage.
Meanwhile, when asked about the launch date of the Tanzanian digital currency, Luoga reportedly declined to say when that is likely to happen. He stressed, however, that the BOT cannot ignore this phenomenon.
“Almost around the world, central bank governors are currently in training and discussing how to achieve this,” Luoga explained.
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