Tanzania’s central bank has said it is still considering the introduction of a central bank digital currency (CBDC), but after identifying several challenges that could affect its implementation, it said it would be “gradual and We will take a prudent and risk-based approach.”
According to the release on January 14th news From Tanzania Bank since 2021 Presentation on the potential of CBDC An East African country assembled a multidisciplinary technical team to explore the risks and benefits of CBDC.
The bank revealed that its team had conducted an investigation Different types of CBDCthe model of issuance and management, and whether it is token-based or account-based.
“Research at this time indicates that more than 100 countries around the world are at various stages of their CBDC adoption journey, with 88 countries in research phase, 20 in proof of concept, 13 in pilot phase, and 3 in pilot phase. It has become clear that several countries are in the launch stage,” said the bank.
At least four central banks: Denmark, Japan, Ecuador and Finland CBDC Adoption Plan Officially Canceledthere were another six who left the digital currency due to structural and technical challenges during the implementation phase.
Banks point to some of these challenges as high implementation costs, cash dominance, inefficient payment systems, and the risk of disrupting existing ecosystems.
A key area of focus for the team is the risks and controls associated with issuing, distributing, counterfeiting, and using currency.
“Analysis of these findings suggests that the majority of central bankers around the world have adopted a cautious approach in their CBDC implementation roadmaps to avoid potential risks that could disrupt the financial stability of the economy. ,” he added.
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At this stage, it has not given a clear timeline for when a decision will be made on Tanzania’s CBDC, but said that “in an effort to reach the target, we will continue to monitor, investigate and engage with stakeholders, including other central banks.” We will continue to cooperate.” Proper and proper use and techniques for issuing Tanzanian Shillings in digital form. ”
Bank of Tanzania Governor Florence Ruoga announced on 26 November 2021 that plans are underway to expand research into digital currencies and strengthen the capacity of central bank staff in Tanzania.
cryptocurrency is Mostly banned in Tanzania In November 2019, the country’s central bank directed that digital assets are not permitted under local law.
