After months of research, the Central Bank of Tanzania recently announced. Choosing a more prudent and risk-based approach to adopting Central Bank Digital Currencies (CBDCs). The central bank said it paid particular attention to “risks and controls associated with the issuance, circulation, counterfeiting and use of currency” during the investigation stage.
Finding the right CBDC technology
Bank of Tanzania (BOT) said on his 14th January that “a gradual, prudent and risk-based approach to CBDC adoption adopted an approach,” he said. [central bank digital currency].”
According to a statement posted on the bank’s website, the BOT, after spending months researching and researching the pros and cons of issuing a digital currency, He said he chose a more cautious approach. During this period, the BOT said it had found other central banks to have taken the same stance, while six countries declined to implement a CBDC “mainly due to structural and technical challenges during the implementation phase.” He said he chose to cancel the hiring.
As reported by Bitcoin.com News in May 2022, Tanzania’s central bank said it plans to launch a CBDC as it is trending among central banks. I was. Furthermore, the bank said digital currencies would be a “safe [r]alternative as many people are affected by cryptocurrency speculators.”
Concerns that it could disrupt the financial system eventually forced the BOT to adopt a more conservative approach, stating it was ready to launch in the first half of 2022.
Risks associated with CBDCs
Meanwhile, during the research phase, the Central Bank of Tanzania revealed that it had considered the types of CBDCs to be issued, the model of issuance, and the format of the digital currency. Did. , and “the degree of anonymity or traceability”. The statement also suggested that banks had paid more attention to the risks associated with them.
paid,” the central bank said.
In a statement, the BOT said that once the study was completed, the Tanzanian public would be informed about the way forward, which could include a roadmap for a “transition to CBDC adoption.” said to be high.
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