Tanzania’s top financial sector officials recently called for a clearer global consensus on Central Bank Digital Currencies (CBDCs) and crypto-assets at a virtual conference organized by the International Monetary Fund (IMF), as Tanzania contemplates its final decision about cryptocurrencies. The Finance and Planning Minister, Mwigulu Nchemba has now revealed that the Bank of Tanzania (BoT) is finalizing preparations for a business case for the establishment of a CBDC in Tanzania and evaluation of crypto assets after recording significant progress in formalizing digital financial services.
Prof Florens Luoga, the Governor of the Bank of Tanzania, emphasized the importance of strong regulations as cryptocurrencies have grown in popularity, with a variety of ramifications, with the IMF stating that its duty is to promote the construction of a “strong, comprehensive, and consistent regulatory framework.”
However, the IMF, represented by Deputy Managing Director Bo Li, stated that it “neither encourages nor discourages” countries from issuing CBDCs, but rather offers technical assistance to those who do so on design features that support public policy goals alongside efficient, resilient, and competitive payment systems.
Furthermore, the Bretton Woods institution stated that each country’s central bank should define its own key objectives before implementing CDBCs, “since there is no universal formula for all countries.” The institution also stressed the importance of striking a balance between consumer privacy protection and financial inclusion and integrity.
Many inhabitants in Africa, according to the IMF, utilize peer-to-peer platforms as their primary entry point into bitcoin since they lack access to centralized exchanges.
Sourced from BiTKE