Tanzania is getting closer to launching a central bank digital currency (CBDC) which gives the country’s residents a “safe alternative,” the central bank governor has said. But, there is no official date yet for digital currency launch.
Growing interest in cryptocurrencies
According to Florens Luoga, the governor of Tanzania’s central bank, his country is inching closer to the launch of a central bank digital currency (CBDC). According to a report, the CBDC will counter growing interest in private-issued cryptocurrencies when it launches.
Louga stated that the Bank of Tanzania (BOT), is also planning to launch a CBDC as it can’t ignore technological advancements in money. The governor claimed that BOT’s digital currency will provide users with an alternative that is safer than cryptocurrencies. He stated:
It’s important for us to provide a central bank digital currency as a safe alternative because many people are being affected by cryptocurrency speculators.
The Global Phenomenon
According to the governor, officials have since been dispatched by the central banks to assist countries with their respective CBDCs. Many central banks tout CBDCs, claiming they are an alternative to cryptocurrency. However, only a few have managed their centralized assets. While only one central bank in Africa has launched a CBDC so far, it is the Nigerian Central Bank. Other banks are currently at exploratory, or research, stages.
Meanwhile, when asked about the launch date of Tanzania’s digital currency, Luoga reportedly declined to state when this is likely to happen. But he stressed that the BOT could not ignore this phenomenon.
“Almost worldwide, central bank governors are in training right now and holding discussions on how to bring it about,” Luoga argued.
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