Tanzanian governor believes CBDC to be a safer alternative to cryptocurrencies

Tanzania is moving closer to launching its central bank digital currency (CBDC) in response to the rising popularity and adoption of cryptocurrencies. The Governor of the Bank of Tanzania Florens Luoga said in an interview on May 9 in Dar es Salaam, the commercial capital, Bloomberg reported. Luoga affirmed that

CBDC

will provide the citizens of the country a safe alternative. The date of launching the Tanzanian CBDC was not revealed.

The BOT Governor said that CBDC will help in countering the growing inclination of people towards privately issued

crypto assets

. Luoga remarked that the Central Bank cannot remain unaffected and behind either with the technological advancement in money ushered with blockchain and cryptocurrencies. He also believes that Central Bank issued digital currency will provide users a secure and reliable substitute than cryptocurrencies. The cryptocurrency trading and speculation has been influencing and affecting many people around, the governor opined.

Luoga however did not tell any specific date about the launch date of Tanzania’s digital currency, but confirmed that the authority cannot ignore the growing presence of digital currencies. He commented, “Almost worldwide, central bank governors are in training right now and holding discussions on how to bring it about,”. He explained the ongoing process of CBDCs development and said that the BOT had sent officials to countries whose respective CBDCs have progressed.

So far in Africa, only the Nigerian central bank has launched its CBDC, e-Naira. Other African countries which are researching on the development of CBDC are Kenya, Madagascar, Eswatini, Rwanda, Ghana, Morocco, and Tunisia. Zambia also officially announced its plans to explore the adoption and deployment of CBDCs in February 2022.

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