The Bank of Tanzania has said it plans to roll back its previous cryptocurrency ban after the President of Tanzania called on the country to prepare for crypto adoption.
Bank of Tanzania seeks to lift crypto ban
According to Reuters On Friday, June 25, 2021, Tanzania’s central bank is working on a directive from the country’s president, Samia Suluhu Hassan, which could force the central bank to do an about-face on its crypto ban. The Bank of Tanzania banned the use of cryptocurrency assets in the country in November 2019, claiming they were illegal.
Earlier in June, Hassan asked the central bank to work on accepting the cryptocurrency. The Tanzanian president also noted the growing popularity of crypto and blockchain and urged the Bank of Tanzania to prepare for such innovations. A statement from Hassan reads as follows:
“Many countries around the world have not accepted or started to use these currencies. However, I would like to advise the central bank to start working on these issues. Just be prepared.
As the Tanzanian central bank plans to implement the president’s directive, it’s unclear whether the Bank of Tanzania would embrace bitcoin and other crypto assets, or go the route of issuing a digital currency. of the central bank (CBDC).
Indeed, several central banks around the world are exploring the benefits of a CBDC or are already testing their sovereign digital currencies. While China seems to have made the most progress, the central banks of the African continent in countries like Nigeria, Ghana, and South Africa have also announced their intention to issue a CBDC.
Abdulmajid Nsekela, president of the Tanzania Bankers Association, applauded President Hassan’s push to adopt cryptocurrency, as it could help reshape an economy still heavily dependent on cash. According to Nsekela, it was important for the central bank to know the crypto industry, adding that “the most difficult element for regulators is to be taken by surprise by innovations. “
Meanwhile, Hassan’s comments come after El Salvador’s adoption of bitcoin. The Central American country became the first to make bitcoin legal tender, who will be implemented in September.
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