The Tanzanian government is now looking to develop its own cryptocurrency to follow the path of other African countries. According to Bloomberg, the Bank of Tanzania has already launched preparations for a central bank digital currency (CBDC) amid a feeling of “FOMO” or fear of missing out among authorities regarding the crypto sphere.
“To ensure that our country is not left behind in the adoption of central bank digital currencies, the Bank of Tanzania has already started preparations for having its own CBDC,” commented Florens Luoga, Governor of the Bank of Tanzania. That being said, Tanzania is also joining Nigeria in the development of CBDC in Africa, which was the first country to do so with its upcoming eNaira.
However, as with eNaira, Tanzania is not currently considering making its CBDC legal tender but a complement to its existing currency, the Tanzanian shilling. Nonetheless, the Tanzanian authorities remain cautious with any crypto-related investment and continue to warn people of its risks, citing volatility concerns.
ATFX as one of the brand sponsors of the finance tycoons London Summit 2021 Go to article >>
By mid-year, Tanzania was showing an inclination towards adopting cryptocurrencies. The country’s president, Samia Suluhu Hassan, has urged the central bank to prepare for cryptocurrencies. While her remarks are not straightforward, she said adoption of cryptocurrency and blockchain technology as a whole is increasing and her country should lead the way for such developments.
Africa and Cryptos
As rich countries worry about the rise of digital currencies and increasingly try to curb the industry, emerging countries are becoming the torchbearers of digital currencies. In addition, a few island nations have beaten large economies to issue their own central bank digital currency (CBDC) in partnership with private actors.
Countries like Nigeria are seeing massive adoption of cryptocurrencies due to the country’s failing economy. Previously, the country’s central bank had banned lenders from working with crypto exchanges, forcing crypto users to conduct their business on peer-to-peer platforms.