Tanzania Central Bank Turns To Digital Currency As An Alternative To Cryptocurrency

Authorities in Tanzania are considering issuing an official digital currency to combat the growing use of cryptocurrencies.

Florens Luoga, Governor of the Central Bank of Tanzania, said in his statements today that they see digital central bank currencies (CBDC) as an alternative to cryptocurrencies.

According to Bloomberg’s quote, Luoga said, “There are too many people affected by cryptocurrency speculators, and it is critical that we develop a digital central bank coin as an alternative.” said.

As of last October, Nigeria was the first country to start using digital currency for payment transactions in Africa. The Governor of the Central Bank of Tanzania mentioned that they could develop a CBDC like this.

Luoga also stated that as the Central Bank of Tanzania, they have sent representatives to a group of countries, including Nigeria, that have experience in CBDC. Luoga did not provide information on when Tanzania will develop its own digital currency.

“We cannot ignore digital central bank coins.” Luoga said, “Almost everywhere in the world, central bank governors receive training and discussions on how this can be improved.” he added.

A recent study by the Bank for International Settlements (BIS) also showed that nine out of ten central banks conduct research on digital currencies.