The Tanzanian President noted the growing impact of digital assets on the world’s financial system and called on the country’s central bank to investigate crypto.
Her speech on crypto on Sunday gave Bitcoin another boost. Her speech came just after El Salvador announced its acceptance of Bitcoin as legal tender. Along with a host of countries in the South and Central America signaling their willingness to join. Samia Suluhu Hassan said that Tanzania has relatively low penetration of crypto assets. But in order to keep up with the times, the country’s regulator needs to know more about cryptocurrencies. She emphasizes – not only Tanzania, but the entire East African region is still lagging behind in the adoption and development of decentralized solutions.
«We have witnessed the emergence of a new journey through the internet. However, throughout the region, including Tanzania, they haven’t accepted or started using these routes. My call to the Central Bank is that you should start working on that development. The Central Bank should be ready for the changes and not be caught unprepared», – said Samia Suluhu Hassan.
One of the most active regions for peer-to-peer crypto trading
African regulators aren’t very active in researching crypto. At the same time, Africa is one of the most active regions for peer-to-peer crypto trading. Thus, although African lawmakers have so far been in no hurry to legalize Bitcoin, this continent is one of the key points of peer-to-peer digital asset trading, second only to North America. At the same time, over the past six months in most African countries, the volume of Bitcoin trade has increased by 15-30%. For the record, trade volume in North America was down 18%. In sub-Saharan Africa, trade was about $ 17 million in May 2021. Up about 50% over the same period last year.
True, Tanzania is only the seventh country in Africa in terms of peer-to-peer trade. On average, P2P transactions with Bitcoin for only $ 90,000 carried out in the country per week. For comparison, the weekly turnover in Kenya exceeds $ 3 million, in Nigeria – $ 8 million.
Note that Tanzania is one of the poorest countries in terms of GDP per capita. According to the IMF, the state ranks 169 out of 195 presented in the rating.
The inflation rate in Tanzania is 3.3%, according to Trading Economics. The country has its own currency – the Tanzanian shilling.
Africa for cryptocurrency regulation
Currently, state digital currencies in Africa are being developed by the central banks of Nigeria and Ghana.
South African Republic intends to lay the foundation for phased regulation of cryptocurrencies.
According to a document released on June 11, the country’s regulators have laid out a roadmap for developments in the field of cryptocurrency regulation.
If at the beginning of the crypto boom, the leadership of South Africa adhered to a cautious passive attitude towards cryptocurrencies, positioning rather non-interference in the process, then with the growth of private interest in this type of asset, when at the beginning of the year daily cryptocurrency trading in the country reached $ 147 million per day, the policy of silence becomes impractical.
The published document contains 25 regulatory recommendations. It address three key areas: combating money laundering, applying financial legislation to crypto, and regulating cross-border payments. In addition, the South African regulator issued remarks on the nature of cryptocurrencies. Pointing out its concerns about the decentralization of the asset. According to the regulator, the lack of government control doesn’t provide reliable protection for investors, making cryptocurrencies a risky investment.