Tanzania Central Bank inspired by Nigerian CBDCs

The Central Bank of Tanzania is ready to jump in the central bank Digital Currency (CBDCs) research and deployment. 

Central Bank Digital Currency (CBDCs) is popularly known for the adoption of blockchain technology and advancement in the traditional payment system present time, almost 90% of the major central banks are doing their development and research work in CBDCs to touch a high level of modernized technology for traditional payment systems. 

On Thursday, Florens Luoga- governor at Bank of Tanzania– speaking at the 20th Conference of Financial Institutions (COFI) announced plans for the CBDCs adoption. 

Luoga stated: 

“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,” 

The governor said that they are looking to increase the strength of and capacity of the blockchain inclined team of the country’s Central bank to advance the capacity of development work in CBDCs. 

Luoga also admitted that they are influenced because of the Nigerian CBDCs successful rollout. Now, Tanzania will follow the footsteps of Nigerian e-Naira to adopt CBDCs. 

The Nigerian central bank established a partnership with the German FinTech, to launch the Nigerian CBDCs ( e-Naira) successfully. So here Tanzania may consider establishing a partnership with any Fintech firm, however, it will be interesting that which Fintech or blockchain inclined firm will be the topmost priority of Tanzania.

Luoga said that, with the aim of the CBDCs, the country is looking toward foreign exchange diversification. 

With these types of modernization plans, the governor asserted that the central bank authority will try its best to maintain the inflation rate between 3% to 5% in 2021-22. 

On the legal status of crypto, Luoga said that the Central Bank is sceptical about the adoption and currently crypto is under no legal status so citizens should remain away. However crypto is not banned, it is in gray area status. 

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