More scrutiny of cryptocurrencies is needed, according to Prof. Florens Luoga the Governor of the Bank of Tanzania.
The Governor, speaking at the Conference of Financial Institutions in Dodoma in November 2021, stated that they do not have a clear deadline for developing legislation to protect the sector.
“As far as we are aware, cryptocurrencies are not secure. We can’t say when regulations will be issued because we’re currently studying; we’ll publish regulations once we’ve completed our research.”
Tanzania’s current President, Samia Suluhu Hassan, asked Tanzania’s financial authorities to “look into” cryptocurrencies in June 2021 so that the country does not fall behind.
However, there hasn’t been much progress from the country in adopting cryptocurrencies since then, until the governor spoke about plans for a CBDC and regulation at the just ended Conference.
Many people assumed President Suluhu was endorsing cryptocurrencies when she made her remarks on Bitcoin, especially because they came so soon after El Salvador announced that the Government was accepting Bitcoin legally.
However, Prof. Florens Luoga’s recent remarks indicate that the country is taking its time implementing the same concepts that other African countries are pondering about when it comes to crypto and blockchains.
Tanzania recently announced its preparations to own a Central Bank Digital Currency(CBDC) in November. Apart from Tanzania, Kenya has also announced plans for a CBDC through its Central Bank Governor.