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Tanzania could be following El Salvador to prepare for cryptocurrency adoption

A few years after banning the use of digital assets within its borders, Tanzania has changed its mind. According to Reuters, the Bank of Tanzania, the nation’s central bank, has confirmed that it has begun working on the President’s recent directive to adopt cryptocurrencies.

Tanzania’s central bank reversing its previous cryptocurrency prohibition

In November 2019, Tanzania banned cryptocurrency, saying they were not recognized by local law. But now, president Samia Suluhu Hassan has issued a directive that will adopt cryptocurrency and emphasizes the need for this new asset class.

The new president, who came to power after the death of her predecessor in March, said the emergence of digital currencies in the East African country was inevitable.

“In the financial sector, we have witnessed the emergence of blockchain technology or cryptocurrency,” Hassan said during the opening of a new central bank branch in the northern town of Mwanza this month.

“Many countries in the world have not accepted or started using these currencies. However, I would like to advise the central bank to start working on those issues. Just be prepared.”

However, the Tanzanian spokesperson did not disclose whether the central bank plans to adopt any cryptocurrency. Or whether they are looking to issue its own digital currency as China has done.

According to data from Useful Tulips, in the last 7 days, Tanzania ranks seventh in terms of peer-to-peer trading volume in sub-Saharan Africa. Nigeria still accounts for more than half of the region’s Bitcoin trading activity.

tanzania-could-be-following-el-salvador-to-prepare-for-cryptocurrency-adoption

Source: Usefultulips

This development comes shortly after news broke that, as AZCoin News reported, El Salvador has become the world’s first nation to make Bitcoin a legal tender. Since then, several other countries have outlined similar plans, including Paraguay and Panama.

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