After several months of investigating cryptocurrencies and blockchain, Tanzania’s central bank (BoT) is now planning to launch its central bank digital currency (CBDC) as it is anxious not to be left behind amid the global rise and the increasing adoption of cryptocurrencies.
The revelation was made by Central Bank of Tanzania Governor, Prof Florens Luoga, while speaking at a 2-day Conference of Financial Institutions in Tanzania held on 25-26th November, 2021.
The conference was also attended by the Tanzania’s President, her excellency Samia Suluhu.
Speaking about the Tanzanian CBDC, the Governor said:
“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.”
Additionally, governor Luoga revealed that they are still researching on cryptocurrencies and they will issue regulations once research is complete. The Central in November 2019 warned the public to be cautious when trading in cryptocurrencies saying they are not authorized in the country.
Several other countries have already taken concrete steps or announced their intentions to launch a CBDC in the future. The Bahamas became the first country in the world to publicly avail its own central bank digital currency (CBDC) in October 2020, while Nigeria was first in Africa.
Reports indicate that a total of 15 countries are in the pilot stages with their own CBDCs, including China, South Korea and Sweden, with about 81 countries in other stages of exploring CBDCs. However, many more countries have not revealed their plans.