Tanzania’s Central Bank takes a ‘phased and risk-based approach to CBDC adoption’
A report was published regarding central bank digital currency and indeed this report is very useful for a country like Tanzania which describes its successful efforts. On 14 January it was announced by the Bank of Tanzania (BOT) that it has adopted a phased, cautious and risk-based approach to the adoption of central bank digital currency. The bank also states that it will continue its efforts with the aim of finding a suitable and fair use technology to digitally issue the Tanzanian currency shilling and at the same time it will definitely make the digital currency stable and sustainable. Will try to
The Bank of Tanzania said it had chosen the right and cautious approach after months of research and exploring the pros and cons of issuing a digital currency, according to a statement on the bank’s website. In this period the Bank of Tanzania says that it received reports that other central banks had adopted the same currency while 6 countries chose to cancel the adoption of their central bank digital coin and it was mainly structural in the implementation phase and it was due to technical challenges.
As reported in May 2022, Tanzania’s central bank had plans to launch its first CBDC as it became a trend among central banks. Apart from this, the bank says that digital currency would be a safer option as many people are getting influenced by crypto currency speculators. While it is feared that the central bank digital currency could overburden the country’s financial system, eventually forcing Bangkok Tanzania, which has hinted at launching during the first half of 2022, to adopt a more conservative approach. asked to adopt. Meanwhile during the research phase we see that a statement was made by the Central Bank of Tanzania that the type and model of issued central bank digital currency and a form of digital currency as well as the “degree of anonymity or traceability” “considers. It was also suggested that the bank paid more attention to the respective squares. Special attention is being paid to and special provision for the central bank to control the risks associated with the issue and distribution and use of counterfeit currency. In the statement, the bank also said that once the research is complete, the Tanzanian public will be informed about the way forward and further efforts will be made, including “the transition to central bank digital currency adoption”. also includes a roadmap.