Tanzania prepares to launch its own central bank digital currency

Tanzania’s central bank will likely be launching its own digital currency quickly. Governor Florens Luoga revealed the news on the central bank-organised “twentieth Conference of Financial Institutions (COFI)” on Thursday.

Luoga mentioned, as quoted by Bloomberg, “the Bank of Tanzania has already begun preparations to have its own Central Bank Digital Currencies (CBDCs)  to make sure that the nation is just not left behind the adoption of CBDCs.”

A CBDC is a legal tender issued by a central bank in a digital kind. It is similar as a fiat currency and is exchangeable one-to-one with the fiat currency.

This improvement comes after Nigeria rolled out its own CBDC. In late October, Nigeria launched its CBDC — the eNaira. In doing so, it joined the Bahamas and 5 islands within the East Caribbean as the one economies to have launched CBDCs. This is a brief record, however one that’s doubtless to be supplemented. CBDC pilot initiatives are underway in not less than 17 different nations.

As of 2019, cryptocurrencies are largely banned in Tanzania after the nation’s central bank mentioned the digital property weren’t acknowledged by native regulation. For Nigeria, the nation’s central bank banned monetary establishments from offering companies to crypto exchanges. Following the ban, peer-to-peer transactions account for the majority of Nigeria’s crypto buying and selling exercise.

In India, the Reserve Bank of India (RBI) had mentioned central banks are exploring DLT (Distributed Ledger Technology) for software in bettering monetary market infrastructure, and contemplating it as a potential technological answer in implementing CBDC.

Meanwhile, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is listed for introduction in Parliament’s Winter Session which seeks to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India”. The Bill “seeks to prohibit all non-public cryptocurrencies in India, nevertheless, it permits for sure exceptions to promote the underlying expertise of cryptocurrency and its makes use of”.

Leave a Comment

Your email address will not be published. Required fields are marked *