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Tanzania Follows Nigeria’s Footstep, Aims To Develop Digital Currency

 

Tanzania aims to develop its own digital currency, following in the footsteps of Nigeria, after becoming concerned about the risk of cryptocurrency.

This was disclosed by the Tanzanian central bank Governor, Florens Luoga at a finance conference in the capital, Dodoma, according to a Bloomberg report.

Tanzania, the governor claims, will follow in the footsteps of Nigeria and develop its own digital currency. Nigeria’s eNaira was launched on October 25, 2021, becoming the first African country to do so.

What the Tanzania central bank governor is saying

Florens Luoga said, “To ensure that our country is not left behind in the adoption of central bank digital currencies, the Bank of Tanzania has already begun preparations to have its own CBDC,”

Tanzania’s intentions, according to Luoga, are similar to Nigeria’s eNaira, which was introduced in October to reduce transaction costs and increase participation in the formal financial system.

“As part of preparations Tanzania is strengthening the capacity of central bank officials on digital currencies and expanding research,” Luoga said.

Even though Tanzania’s President, Samia Suluhu Hassan has a positive position as regards cryptocurrency, financial authorities in the East African country say, “Tanzania remains wary on cryptocurrencies and continues to advise the public to be cautious”

Luoga said the central bank is also considering buying gold from local refineries to diversify its foreign exchange holdings. “The monetary gold that we plan to buy should have a purity of not less than 99.5%,” he said.

 

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