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Cryptocurrencies Not Outlawed, Invest at Own Risk

Recently, the Tanzanian central bank governor stated that cryptocurrencies are not banned in Tanzania but cautioned those who invest in crypto-related assets that they take their own risks.

Central Bank is open to cryptocurrencies

Florens Luoga (the Bank of Tanzania) stated recently that cryptocurrency has not been outlawed by the central bank and that anyone investing in crypto-related assets is doing so at their own risk.

Luoga also stated that while the BOT is currently exploring the possibility to issue a digital currency, it is open to all ideas about how it can regulate cryptocurrencies.

We cannot outlaw something we aren’t yet proficient with, or regulate a game we don’t know the rules of. Although we haven’t reached the point where we can costerise [sic] cryptos yet, we are open to receiving applications from anyone who is interested. Luoga explains that everyone should be free to submit their ideas for consideration.

Luoga seems to be repeating an earlier promise to listen to President Samia Suluhu Hasan’s call for finance chiefs in the country to prepare for cryptocurrency. According to Bitcoin.com News, Tanzania’s government announced the creation a blockchain advisory group in July after President Samia Suluhu Hasan made the call. Later, the central banking promised that it would listen to the president’s call.

CBDC Plan of the Central Bank

Six months later, Luoga made good on his promise by telling financial sector stakeholders meeting at the national capital that cryptocurrency trading is still permitted to the public. This contrasts with the BOT’s 2019 position that suggested that cryptocurrency trading was against foreign exchange regulations.

Luoga is quoted as saying that the BOT plans to launch a digital currency. He explained that the central banks objective was to “minimize, if not minimize, the potential effects of a CBDC upon the core business of the central bank of monetary policy and financial stability and integrity and payment system structure, development and construction.”