Tanzania Closing On CBDC Launch

Tanzania’s central bank governor, Florens Luoga, claims that the country is making progress toward launching a central bank digital currency (CBDC).

According to a report, the CBDC will be used to combat private cryptocurrency issuance once it has been created.

During interviewLouga said that the Bank of Tanzania (BOT), is also preparing to implement a CBDC because it cannot ignore the advances in money technology.

BOT’s digital currency, according to the governor, will provide consumers with a safer option for cryptocurrencies.

He said that it was crucial for the country to establish a central bank digital money as a safe option, since bitcoin speculators had harmed many people.

The governor stated that officials from the central bank have been dispatched to countries where CBDCs are advanced. Many central banks have promoted CBDCs, but few have actually tested their control assets.

Only Nigeria’s central bank has set up a CBDC in Africa so far, while others are in research or experimental phases.

However, when questioned about the expected launch date of Tanzania’s digital money, Luoga is said to have refused to say. However, he did emphasize that the BOT could not ignore this fact.

Luoga stated that central bank governors are currently receiving training and discussing how to apply it practically everywhere.

Approximately eight African countries have announced plans to create government-controlled cryptocurrencies, often known as central bank digital currencies, since the beginning of 2018. (CBDC).

Although it is still the intention of the CBDC to replace crypto currency in Africa, it seems reasonable to conclude this tactic has not succeeded in convincing African crypto enthusiasts, especially the younger generations, that they should stop trading in crypto. Instead they look for legal and innovative ways to trade crypto.

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