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Tanzania reportedly makes plans to launch CBDC

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After neighbouring nations announced similar projects, the Bank of Tanzania is apparently intending to launch a central bank digital currency, or CBDC.

According to a Bloomberg storey published on Friday, Bank of Tanzania Governor Florens Luoga indicated on Thursday that the country was intending to follow Nigeria’s lead and launch its own CBDC. The central bank had “had initiated preparations,” according to Luoga, for a digital shilling, Tanzania’s currency since 1966.

Tanzania is to boost digital currency research and enhance the competence of central bank personnel. As it prepares to create a CBDC, according to the governor. Tanzania will join a small group of nations investigating the implementation of a CBDC if it is effective.

Many industry analysts believe that China will be the first major international economy to implement a CBDC. Since April 2020, the country’s central bank has undertaken experiments in key cities. With a bigger test planned for the Beijing Winter Olympics in 2022.

According to Luoga, the establishment of Nigeria’s own CBDC, the eNaira, last month prompted Tanzania’s central bank to take action. The Bahamas became the first country in the world to debut a central bank digital currency in October 2020. Thus, the CBDC is only the second to be completely available to the public.

Tanzania’s central bank issued a decree in November 2019 indicating that cryptocurrencies were not recognised by local law. President Samia Suluhu Hassan’s declared in June that the government should be ready for cryptocurrency. Hence, the Bank of Tanzania is apparently seeking to lift the prohibition.

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