Tanzania is on the verge of launching a central bank digital currency (CBDC) that will provide a “safe option” for the country’s residents, the governor of Tanzania’s central bank said. However, no date has been given for the release of the digital currency.
Growing interest in cryptocurrencies
According to the governor of Tanzania’s central bank, Florence Luoga, his country is approaching the launch of a central bank digital currency (CBDC). The launch of a CBDC is expected to offset growing interest in privately issued cryptocurrencies, according to a report.
In comments made during the meeting interview, Louga suggested that the Bank of Tanzania (BOT) is also preparing to launch a CBDC as it cannot ignore advances in monetary technology. The governor claims that the BOT’s digital currency will provide users with a more secure alternative to cryptocurrencies. He said:
It is important to us to offer a central bank digital currency as a safe alternative as many people are affected by cryptocurrency speculators.
The governor added that central banks have since sent officials to countries where their respective CBDCs are making progress. While many central banks have touted CBDCs as an alternative to cryptocurrencies, few have actually experimented with their respective centralized assets.In Africa, so far only the Central Bank of Nigeria roll out CBDC, while others are still in the exploratory or research phase.
Meanwhile, when asked about the launch date of Tanzania’s digital currency, Luoga reportedly declined to say when that might happen. However, he did stress that BOTs cannot ignore this phenomenon.
“Almost all over the world, central bankers are now being trained and having discussions on how to get there,” Loga said.
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