Tanzania’s Central Bank Working on Adopting Cryptocurrencies

A few years after banning the usage of digital assets within its borders, Tanzania is heading towards a full 180-turn. The nation’s central bank asserted today that it has begun working on a recent directive from the President to adopt cryptocurrencies.

• CryptoPotato reported a few weeks back when Tanzania’s President – Samia Suluhu Hassan – highlighted the need for the country to adopt digital assets.
• A Reuters reported from June 25th showed that Tanzania’s central bank plans to listen to Hassan’s words. The organization wants to be prepared for if or when the nation will need to use cryptocurrencies.
• Interestingly, today’s statement from the bank shows an entirely different approach than the one undertaken in 2019.
• Back then, the institution implemented a ban on operating with cryptocurrencies. It argued that the country had not recognized them as legal currencies and warned its citizens to stay away as they might lose money if they invested in such speculative assets.
• Now, though, a spokesperson from the central bank reassured that the organization is “working on the directives given,” referring to President Hassan’s comments.
• However, the bank’s representative failed to disclose details whether it will adopt Bitcoin and other currently existing digital assets or will tend to go with the Chinese route and create a CBDC.
• This development comes shortly after news broke that El Salvador has become the world’s first nation to make Bitcoin a legal tender.
• As reported in early June, the government of the small Central American nation voted in favor of the law, which will come into effect in September.
• Since then, several other countries have outlined similar plans, including Paraguay and Panama.