Tanzania is getting closer to launching a central bank digital currency (CBDC) that will provide residents with a “secure alternative,” the central bank governor said. However, no date has yet been given for the launch of the digital currency.
Growing interest in cryptocurrencies
According to Florence Luoga, central bank governor of Tanzania, his country is getting closer to launching a central bank digital currency (CBDC). Once launched, CBDC is expected to counter the growing interest in private cryptocurrencies, according to the report.
In remarks made during interviews , Luga suggested that the Bank of Tanzania (BOT) is also preparing for the launch of CBDC because it cannot ignore technological advances in money. The governor said that the BOT digital currency will provide users with an alternative that is more secure than cryptocurrencies. He said:
It’s important for us to provide a central bank digital currency as a safe alternative because many people are suffering from cryptocurrency speculators.
Global phenomenon
The manager added that the central bank has since sent officials to countries where CBDCs are developing. While many central banks present CBDCs as an alternative to cryptocurrencies, few have actually tried out their respective centralized assets. In Africa, only Nigeria’s central bank has so far launched a CBDC, while several others are in the research or study stage.
Meanwhile, when asked about a launch date for Tanzania’s digital currency, Luoga declined to say when it might happen. He stressed, however, that BOT could not ignore the phenomenon.
“Almost all over the world, central bank executives are now training and having discussions about how to make it happen,” Luoga asserted.
Image credits: Shutterstock, Pixabay, Wiki Commons