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Tanzania’s Digital Currency: Economists Are Skeptical

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Not long ago, the Bank Of Tanzania established its desire to support the adoption of Cryptocurrency by creating the country’s digital currency.

The adoption of cryptocurrency by Tanzanians has since seen substantial growth following the call by Tanzania’s President Samia Suluhu Hassan for the BOT( Bank Of Tanzania) to commerce procedure for the creation of its digital currency.

Bank Of Tanzania (BOT) director of economics research and policy, Dr Suleiman Missango stated that they are still working on the fundamentals. The general public, including the media, will be updated on the progress made in a due course, he shared.

However, some renowned economists in the country are advising against it. Speaking about his concerns, Dr Donath Olomi who is an economist categorised cryptocurrency with the likes of betting. He implied that cryptocurrency would cause the government to lose control of a large part of wealth, with a great effect on the country’s monetary policy. 

It can mean different things, maybe more Tanzanians wants to keep their wealth out of sight of the government, Dr Donath Olomi stated.

Furthermore, Prof. Haji Semboja, a professor of the State University of Zanzibar’s economics department while stating his reservation reiterated that the development of global International monetary and commodity markets was necessary.

Prof. Semboja further said, “I am not yet to accept an instrument that will never benefit the majority of people. It is not simply because of limited knowledge, but also the level of economic development”

A well-known economist who wants to be anonymous told: “The Citizens” that the “Majority of countries globally have not officially adopted it because of risks. also stating that the fluctuation of cryptocurrency value is very high.

To him, for cryptocurrency to be practical, all central banks must accept it and give it backing. “Currencies are stable globally because they are supported by the central bank through strong monetary policies”.

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Data Scientist, Tech Enthusiast and a Crypto Lover