The Tanzanian government is making deliberations on how to develop its own cryptocurrency to follow the path of other African countries. According to Bloomberg, the Bank of Tanzania already kicked off with the preparations of a central bank digital currency (CBDC) amid a ‘FOMO’ or Fear of Missing Out feeling among the authorities regarding the crypto sphere.
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“To ensure that our country is not left behind the adoption of central bank digital currencies, the Bank of Tanzania has already begun preparations to have its own CBDC,” Florens Luoga, Bank of Tanzania’s Governor, commented on the matter. With that being said, Tanzania is joining Nigeria in the CBDC development within Africa, which was the first country to do so with its forthcoming eNaira.
However, as with eNaira, Tanzania does not plan to make its CBDC legal tender but a complement to its existing currency, the Tanzanian shilling. Still, Tanzanian authorities remain cautious about any crypto-related investment and keep warning people about the risks, citing volatility concerns.
