The Central Bank of Tanzania prepares to launch CBDC

The state plans to expand research into digital currencies and strengthen the capacity of the central bank staff

28.11.2021 - 07:00

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What’s new? According to the Bloomberg report, the Bank of Tanzania Governor Florens Luoga said that the state plans to follow Nigeria's lead and introduce its own CBDC. Luoga stated that the central bank has already begun preparations to create a digital shilling, Tanzania's currency since 1966.

Information on the Bloomberg website

What is the government's view? According to the governor, in preparing for the launch of the CBDC, Tanzania plans to expand research into digital currencies and strengthen the capacity of the central bank staff. If successful, the state will be among a select group of countries that are currently exploring the rollout of CBDC.

What events preceded it? According to Luoga, the Tanzanian central bank's initiative was prompted by Nigeria launching its own CBDC, the electronic naira, last month.

Cryptocurrencies are banned in Tanzania after the country's central bank issued a directive in November 2019 that digital assets are not recognized by local law. However, the Bank of Tanzania is working to lift the ban after President Samia Suluhu Hassan said the country should prepare for the adoption and implementation of cryptocurrencies.

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