Tanzania to Develop Its Own Central Bank Digital Currency

Tanzania to Develop Its Own Central Bank Digital Currency

The Bank of Tanzania's Governor said that they have already started the preparations.

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 already kicked off with the preparations of a central bank digital currency (CBDC) amid a ‘FOMO’ or Fear of Missing Out feeling among the authorities regarding the crypto sphere.

“To ensure that our country is not left behind the adoption of central bank digital currencies, the Bank of Tanzania has already begun preparations to have its own CBDC,” Florens Luoga, Bank of Tanzanias Governor, commented on the matter. With that being said, Tanzania is joining Nigeria in the CBDC development within Africa, which was the first country to do so with its forthcoming eNaira.

However, as with eNaira, Tanzania does not plan to make its CBDC legal tender but a complement to its existing currency, the Tanzanian shilling. Still, Tanzanian authorities remain cautious about any crypto-related investment and keep warning people about the risks, citing volatility concerns.At mid-year, Tanzania was showing an inclination towards the adoption of cryptocurrencies. The countrys President, Samia Suluhu Hassan, urged the central bank to prepare for cryptocurrencies. Though her remarks were not direct, she said that the adoption of cryptocurrency and blockchain technology as a whole is rising, and her country should pave the way for such developments.

Africa and Cryptos

While rich nations are worried about the rise of digital currencies and trying to curb the industry more and more, emerging nations are becoming torchbearers of digital currencies. In addition, a few island nations have beat large economies to issue their own central bank digital currency (CBDC) in partnership with private players.

Countries like Nigeria are witnessing a mass adoption of cryptocurrencies due to the country‘s failing economy. Earlier, the country’s central bank barred lenders from working with crypto exchanges, which forced crypto users to conduct their business on peer-to-peer platforms.