The governor of Tanzania’s central bank recently stated that cryptocurrencies are not illegal in the country, but warned that those who engage in crypto-related investments do so at their own risk.
Central Bank is open to new ideas on Cryptocurrencies
Florens Luoga, the governor of the Bank of Tanzania (BOT), recently stated that the central bank has not banned cryptocurrencies and that those who invest in crypto-related investments do so at their own risk.
In comments published by The Citizen, Luoga also stated that the BOT, which is currently considering the possibility of issuing a digital currency, is open to any suggestions on how to regulate cryptocurrencies.
“We can’t outlaw something we don’t understand, and we can’t regulate a game we don’t understand how to play.” We are not yet in a position to costerise [sic] cryptos, but we welcome applications from anyone who is interested. Luoga is quoted as saying, “Everyone should feel free to present their ideas for consideration.”
Luoga appears to be reiterating an earlier promise to heed President Samia Suluhu Hasan’s call for the country’s finance chiefs to prepare for crypto by seeking the opinions of interested parties. Following the president’s call, the Tanzanian government announced the formation of a blockchain advisory team through its ICT ministry, as reported by Bitcoin.com News in July. Later, the central bank promised to respond to the president’s request.
The CBDC Plan of the Central Bank
Luoga appeared to make good on this promise less than six months later when he told a meeting of financial sector stakeholders in the national capital that the public is still allowed to dabble in cryptocurrencies. This is in contrast to the BOT’s position in 2019 when it claimed that cryptocurrency trading was illegal under foreign exchange regulations.
The BOT’s goal, according to Luoga, is to “minimize, if not mitigate, the possible effects of a CBDC on the central bank’s core business of monetary policy, financial stability and integrity, and payment system structure and development.”
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