Tanzania, one of the countries in East Africa, is on the verge of launching its central bank digital currency (CBDC) to provide residents with a safe alternative to the highly volatile digital currencies. However, the country’s central bank did not reveal the date for its launch.
The Growing Interest in Digital Assets
According to the central bank governor of Tanzania, Florens Luoga, the country is inching closer to the launch of its CBDC. Once launched, the governor added that CBDC would help to cater to the growing interest in privately issued cryptocurrencies.
The Bank of Tanzania (BOT) is launching CBDC because it targets to move ahead with the emerging technological advances in the financial world. Louga added that a digital currency would offer users an alternative that is safer compared to other cryptocurrencies on the market.
“It is important for us to provide CBDC as a safe alternative because many people are already affected by cryptocurrency speculations,” explained Louga.
Read more: 9 Out of Every 10 Central Banks Working on Digital Currencies Driven by the Growing Demand
An International Phenomenon
The Bank of Tanzania (BOT) governor explained that the country has already dispatched officials to countries where CBDCs have progressed. Although many are the countries that have indicated they want CBDC, few have actualized the idea. In Africa, it is only Nigeria that has launched its CBDC as others trail at the research sages.
In one of the recent surveys released by the Bank of International Settlements (BIS), nine out of every ten central banks were found to be working on developing CBDCs or running concrete experiments.