Recently, the Tanzanian central bank governor stated that cryptocurrency aren’t outlawed but cautioned those who invest in crypto-related assets that it is at their own risk.
Central Bank open to Ideas
Florens Luoga (the Bank of Tanzania) stated recently that cryptocurrency has not been outlawed by the central bank and that anyone investing in crypto-related assets is doing it at their own risk.
Also, in his remarks published by The Citizen, Luoga revealed that the BOT — which is now exploring the possibility of issuing a digital currency — is nonetheless open to any ideas on how it can regulate cryptocurrencies.
“We can’t outlaw something that we are not yet competent with or regulate a game that we don’t really know how it is played. It is not possible to costerise. [sic]We welcome all applications for cryptos. All should feel free to present their ideas for consideration,” Luoga is quoted explaining.
By asking for the opinion of interested parties, Luoga appears to be reiterating an earlier promise to heed President Samia Suluhu Hasan’s call on the country’s finance chiefs to prepare for crypto. Bitcoin.com News reported that the Tanzanian government made its first move through the ICT ministry, when it created a Blockchain advisory team. Later, the central bank itself promised it would heed the president’s call.
The Central Bank’s CBDC Plan
Six months later, Luoga made good on his promise by telling financial sector stakeholders meeting at the capital that cryptocurrency trading is allowed for the general public. This is in contrast to the BOT’s position in 2019 which suggested that trading in cryptocurrencies violated foreign exchange regulations.
Concerning the BOT’s plan to eventually launch a digital currency, Luoga is quoted explaining that the central bank’s objective “is to minimise, if not mitigate, the possible effects of a CBDC on the central bank’s core business of monetary policy, financial stability and integrity, and payment system structure and development.”
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