June 27, 2022

Tanzania Set to Launch Its Digital Currency

2 min read

Tanzania is reportedly making plans to issue its own central bank-issued digital currency (CBDC).Tanzania is reportedly making plans to issue its own central bank-issued digital currency (CBDC).

According to a statement issued by the Governor of the Bank of Tanzania, Florens Luoga, the African country is reportedly making strategies to issue its own central bank-issued digital currency (CBDC). Tanzania Prepares To Launch Its CBDC As lots of African countries continue to take advantage of the

digital currency initiative, Tanzania may be finally ready to follow suit too. According to a report by Bloomberg on Friday, Florens Luoga exposed that Tanzania may be taking a cue from Nigeria by fast-tracking its strategies to present its own CBDC. Luoga insists that strategies are ongoing for the introducing of the digital shilling– Tanzania’s currency considering that 1966.

But Tanzania will not remain in a haste to release the CBDC. According to the governor, the country is currently planning to research more deeply into digital currencies, as part of its efforts towards introducing correctly. All things being equal, the success of the present plans would imply that Tanzania would turn into one of the pioneering African nations to present a CBDC.

Who’s Next To Issue Out A CBDC?

It looks like quite a good variety of industry specialists are predicting China to be the next major economy to launch its CBDC. The reserve bank of China had actually begun its digital currency testing because April 2020 and is preparing an even bigger trial during the Beijing Winter Olympics in 2022.

But Luoga firmly insists that Tanzania’s drive to launch the digital shilling was notified by Nigeria’s successful launch of its own CBDC, the eNaira. Nigeria effectively launched the eNaira last month, becoming only the second CBDC to be fully accessible to the public, right after Bahamas– which launched its own central bank digital currency, back in October 2020.

Meanwhile, at the moment, cryptocurrencies stay prohibited in Tanzania following a directive from the country’s pinnacle bank in November 2019, stating the digital possessions ‘‘ unrecognized by regional law’.

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