According to a Bloomberg story, the Bank of Tanzania (BOT) has begun preparing for its digital currency to guarantee that it does not fall behind other countries in adopting central bank digital currencies (CBDC).

Following speculations that Zanzibar, an independent Tanzanian province off the coast of East Africa, is interested in embracing digital currencies, the announcement was made. The BOT’s action comes about a month after the Central Bank of Nigeria (CBN) became the first central bank on the continent to create a CBDC, as verified by governor Florens Luoga.

In discussing why the BOT is so keen to launch its CBDC, Luoga is reported as saying: To guarantee that our nation does not fall behind in the acceptance of central bank digital currencies, the Bank of Tanzania has already initiated plans to establish its own CBDC.

Tanzanians are being urged to be cautious

The Bank of Ghana is the only other West African central bank that has claimed it is close to establishing the CBDC, as reported earlier by News. However, other central banks, such as the Bank of Namibia and the South African Reserve Bank, have said that they are still looking at the idea of introducing CBDCs.

Tanzanian President Samia Suluhu Hassan requested the nation’s central bank to prepare for digital currencies shortly after taking office. A BOT official stated the bank was listening to President Hassan’s request a few weeks after his address and hinted at a potential reversal of the cryptocurrency prohibition.

According to a source, despite the apparent easing of anti-crypto rhetoric, officials in Tanzania nevertheless encourage Tanzanians to be careful when dealing with crypto-related ventures.


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