In early summer, the Tanzanian authorities announced the legalization of digital currencies. Now it became known about the plans of the Central Bank to issue a token (CBDC). The corresponding statement last week was made by the head of the Central Bank Florence Luoga.
According to him, the regulator has begun preparations for the launch of the national digital currency. Research work is in full swing. With the help of an innovative tool, the Central Bank of Tanzania wants to not only increase the availability of financial services but also reduce transaction costs.
Many African countries are moving towards a CBDC. Last month, Nigeria became the first country on the continent to integrate an electronic version of its fiat currency into the banking sector.
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The so-called eNaira does not replace but complements cash. The token was developed by the Central Bank in partnership with the fintech startup Bitt.
Tanzania may also join the list of states that have issued CBDCs. However, the local regulator is still extremely negative about Bitcoin and advises citizens not to buy this asset.