Tanzania is yet another country, in a long line of both developed and developing nations, to plan the launch of a central bank digital currency. Bloomberg recently reported that the Bank of Tanzania has already started preparing for the kick-start of a central bank digital currency (CBDC). The news outlet further reported that Tanzania’s sudden move was incubated by the phenomenon known as FOMO, or Fear Of Missing Out, amid a global race for crypto domination.
Samia Suluhu Hassan, President of Tanzania, had hinted at the CBDC plans in speeches and comments. She was reported to have said that crypto and blockchain tech adoption in Tanzania is a priority. She urged her country to prepare for crypto derivatives.
Like many other nations, Tanzania will not be making the CBDC its official tender but will complement its main fiat by the inclusion of a centralized digital version of it. Nevertheless, local authorities have issued cautionary tales and warnings about the risks of all crypto-related activities.
It seems that a trend has been rising during the last couple of year, in which more developing nations are keen on investing and adapting crypto-related assets and services, essentially becoming torchbearers, while developed countries are continuously banning, worrying, and regulating those same crypto products.
As for the global CBDC strife, Tanzania is just one nation to start plans. It seems that the worries related to cryptocurrencies do not apply to CBDCs.