Central bank-backed digital currency has now become a phenomenon that every country wants to be associated with. Even though most of them oppose crypto, they see CBDC as a digital currency that can be regulated. Following the lead of countries in the region, Tanzania has announced that it is looming into the prospect of launching its central bank-backed digital currency. A Bloomberg report released earlier today said that Bank of Tanzania boss, Florence Luoga, confirmed the development.
The CBDC development is ongoing
The report mentioned that Luoga said the country already took a cue from Nigeria, which listed central bank-backed digital currency some weeks ago. In his statement, Luoga said that the development of its CBDC was already in the works, and it will be backed by its native currency, the shillings. The Governor also mentioned that the premier bank is looking into the certain use cases of the CBDC and strengthening its staff base. If the CBDC goes live, Tanzania will become of the few countries that have registered their CBDC since the start of the year.
Crypto is still banned in Tanzania
Analysts and market participants are presently looking to China as it continues to ramp up preparations for the launch of its CBDC. Asides from the digital currency being in the works for a long time, the country has been conducting several trials across states. Last year, a series of trials was conducted all over major cities with free packets given to citizens.
Since the beginning of the year, China has been conducting tests collaborating with partners to make it accessible to everyone. However, a major test of the digital currency is said to be coming at the Winter Olympics, which is scheduled to take place next year. Logga mentioned their CBDC idea was driven by the launch of the naira, Nigeria’s digital currency.
Presently, Nigeria is second to the Bahamas, whose CBDC went live in 2020. Like Nigeria, Tanzania has banned crypto trading since 2019. According to a decree passed in the country in 2019, digital assets are not recognized by any law in Tanzania. However, several reports point at the premier bank looming to overturn the ban after a recent statement by the country’s president. Back in July, President of Tanzania Suluhu Hassan told financial traders to expect the influx of crypto in the country.