{"id":16547,"date":"2023-01-17T07:46:51","date_gmt":"2023-01-17T07:46:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/tanzanian-central-bank-adopts-phased-and-risk-based-approach-to-adoption-of-cbdc-africa-bitcoin-news\/"},"modified":"2023-01-17T07:46:51","modified_gmt":"2023-01-17T07:46:51","slug":"tanzanian-central-bank-adopts-phased-and-risk-based-approach-to-adoption-of-cbdc-africa-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/tanzanian-central-bank-adopts-phased-and-risk-based-approach-to-adoption-of-cbdc-africa-bitcoin-news\/","title":{"rendered":"Tanzanian Central Bank Adopts ‘Phased and Risk-Based Approach to Adoption of CBDC’ \u2013 Africa Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After months of research, the Tanzanian central bank announced recently that it had chosen a more cautious and risk-based approach towards the adoption of its central bank digital currency (CBDC). During the research phase, the central bank said it paid particular attention \u201cto risks and controls associated with issuance, distribution, counterfeit and usage of currencies.\u201d<\/strong><\/p>\n

Finding the Right CBDC Technology<\/h2>\n

The Bank of Tanzania (BOT) announced on Jan. 14 that it had \u201cadopted a phased, cautious and risk-based approach to adoption of CBDC [central bank digital currency].\u201d The bank also said it will continue with its efforts aimed at finding \u201ca suitable and appropriate use and technology for issuance of Tanzanian shillings in digital form.\u201d<\/p>\n

According to a statement<\/a> on the bank\u2019s website, the BOT said it chose a more cautious approach after spending months researching and exploring the pros and cons of issuing the digital currency. During this period, the BOT said it found that other central banks had adopted the same posture, while six countries had chosen to cancel their CBDC adoption \u201cmainly due to structural and technological challenges in the implementation phase.\u201d<\/p>\n

As reported<\/a> by Bitcoin.com News in May 2022, the Tanzanian central bank said it planned to launch its CBDC because this had become a trend among central banks. In addition, the bank said the digital currency would be \u201ca safe[r] alternative because many people are being affected by cryptocurrency speculators.\u201d<\/p>\n

However, fears the CBDC could disrupt the country\u2019s financial system eventually forced the BOT, which signaled its readiness to launch in the first half of 2022, to adopt a more conservative approach.<\/p>\n

Risks Associated With CBDCs<\/h2>\n

Meanwhile, during the research phase, the Tanzanian central bank revealed that it considered the type of CBDC to be issued, the models for issuance, the form of the digital currency, as well as the \u201cdegree of anonymity or traceability.\u201d The statement also suggested the bank had given more attention to associated risks.<\/p>\n

\u201cParticular attention also is paid to risks and controls associated with issuance, distribution, counterfeit and usage of currencies,\u201d the central bank said.<\/p>\n

In the statement, the BOT said once the research is complete, the Tanzanian public will be given information on the way forward and this will likely include a roadmap for the \u201ctransition to CBDC adoption.\u201d<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/em><\/strong><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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