Tanzanian Government Officials Desire Global Clarity on CBDCs and Cryptoassets

Tanzanian financial sector representatives have urged for a more defined global agreement on central bank digital currencies (CBDCs) and crypto-assets. Officials agreed that additional discussions are necessary before a final decision is made.

CBDCs’ interoperability

Just over a year after Tanzanian President Samia Suluhu Hassan directed the country’s finance ministers to prepare for cryptocurrencies, financial industry authorities in the country are now advocating for a more consistent worldwide stance on central bank digital currencies (CBDCs) and crypto-assets.

The authorities, Mwigulu Nchemba, Minister of Finance and Planning, and Florens Luoga, governor of the central bank, have allegedly agreed that further debate on the two issues is necessary before any decision is taken.

According to The East African, the two officials made the remarks during a virtual conference hosted by the Bank of Tanzania (BOT) and the International Monetary Fund (IMF) (IMF). According to the article, the meeting was convened exclusively for Anglophone countries in Sub-Saharan Africa.

The seminar apparently aimed to provide finance officials from countries in this region with additional insight into topics such as financial inclusion, cybersecurity, and CBDC interoperability. A similar gathering aimed at Francophone countries is expected to take place later this year, according to the report.

Regulations that are more restrictive

Meanwhile, Nchemba is quoted in the paper, exposing the scope of the BOT’s progress. As he stated:

[The central bank is] nearing completion of a business case for [the] formation of a CBDC in Tanzania, as well as the evaluation of crypto assets, following significant progress.

Luoga, for his part, reiterates that “crypto-assets have become more prevalent” and that, as a result of its implications, “there is a desire for intervention through tighter regulation.”

Bo Li, the IMF’s deputy managing director, stressed that while governments are likely to embrace CBDCs for a variety of reasons, the global lender will neither encourage nor oppose their issuance. Li stated, however, that his agency will continue to provide technical assistance to countries that choose to issue CBDCs.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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