Would Tanzania reverse its previous crypto ban? 

The Bank of Tanzania, the country’s central bank, is providing hints that it is working to reverse its 2019 crypto ban decision. 

An unnamed central bank spokesperson said the bank would now be in line with Tanzanian President Samia Suluhu Hassan’s call to embrace cryptocurrencies to further develop the country’s economy. 

After El Salvador’s successful passing of its Bitcoin law, President Hassan said the dominance of cryptocurrencies is inevitable and urged the country, especially his officials to open the country for digital currencies. 

Crypto or CBDC?

The blockchain and crypto community in Tanzania have rejoiced with the President’s remarks about cryptocurrencies and were hoping that the country would be able to keep up with the current crypto trends. 

And while there is a high optimism on Tanzania’s shifting stance towards digital currencies, one thing remains unclear: Would the government adopt cryptocurrencies or would it create its own CBDCs? The government is expected to provide a clear answer to this question in the coming weeks. 

Challenges ahead

But even with the government’s newfound appreciation towards cryptocurrency, Abdulmajid Nsekela, chairman of the Tanzania Bankers Association, has admitted that the country will certainly face significant challenges in adopting digital currencies. 

One of the major problems he sees is the regulators’ unpreparedness for big innovations such as cryptocurrencies and their slow movement in adopting changes. According to him, gradual preparations are one of the keys to seamlessly embrace a breakthrough technology to effectively tap its massive benefits. 

Other analysts have also pointed out that while President Hassaan’s call is something to look forward to, the speed at which the government is willing to take to prepare the country for digital currencies remains to be seen. 

 

Image courtesy of Cointelegraph News/YouTube

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