Tanzania To Adopt Digital Currency After Nigeria

The government of Tanzania plans to launch a central bank digital currency (CBDC) to protect its citizens from cryptocurrency speculators.

Tanzania central bank governor Florens Luoaga says It’s important to provide a central bank digital currency as a safe alternative because many people are being affected by cryptocurrency speculators,”

This follows after an announcement made by the Bank for International Settlements that 90% of central banks are considering issuing a digital currency with sovereign backing.

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It will be recalled that Last Oct, Nigeria set the bar for African countries by launching a digital currency, the eNaira, while China’s digital yuan was rolled out in the nation’s capital earlier this year.

Luoga introduced launching a CBDC in Nov at the 20th Conference of Financial Institutions. He noted that “the Bank of Tanzania has already begun preparations to have its own Central Bank Digital Currencies (CBDCs) to ensure that the country is not left behind on the adoption of CBDCs.”

Tanzania sent officials to other countries to learn from those with expertise in CBDCs, such as Nigeria.

Nigeria’s central bank announced the expansion of its eNaira’s utility, making bill payments possible using the CBDC.

Luoaga added that “We cannot ignore central bank digital currencies. Almost worldwide, central bank governors are in training right now and holding discussions on how to bring it out,” he said.