BANK OF TANZANIA EXPLORES THE INTRODUCTION OF DIGITAL CURRENCY.

The government has announced that the Bank of Tanzania (BoT) is currently conducting research on the introduction of Central Bank Digital Currency (CBDC) in the country.

This information was disclosed in parliament in Dodoma by Deputy Minister for Finance, Hon. Hamad Hassan Chande, in response to a question from Kigamboni MP, Dr. Faustine Engelbert Ndugulile, who inquired about the government's plans to introduce a CBDC.

Hon. Chande explained that the Central Bank has identified that, similar to many other nations, the introduction of a CBDC must be approached cautiously and meticulously to avoid negative impacts on the existing payment systems. The goal is to address actual payment issues while ensuring that the current systems adequately enable citizens to transfer money and make payments.

“Our market still needs improvement in strengthening existing systems using widely accessible sources for the majority of citizens (basic mobile phones) as opposed to digital currencies that require smartphones,” said Hon. Chande.

Hon. Chande noted that many countries, including Tanzania's neighbors and the broader region, are still in the early stages of researching and improving their payment systems.

Finance Minister Hon. Dr. Mwigulu Lameck Nchemba added that the government continues to research the use of electronic money to determine how the country could benefit if it transitions to this system.

“Research is ongoing, and we are looking at the experiences of countries that have begun using digital currencies, including Nigeria and Asian nations. Once the research is completed, appropriate steps will follow,” Dr. Nchemba elaborated.