The Bank of Tanzania (BoT) announced on Monday that it has finalized its study on the possible introduction of a central bank digital currency (CBDC).
According to BoT Governor Emmanuel Tutuba, the conclusions of the study, completed last August, will soon be submitted to the relevant authorities for review.
“I cannot disclose the results yet, as they must first be analyzed by government bodies to determine the need for a legal framework,” he said, stressing that it is now up to the government to decide the next steps to be taken based on the report’s recommendations.
For his part, BoT’s Director of Financial Deepening and Inclusion, Kennedy Komba, recently emphasized that the study focuses on both the opportunities and risks associated with introducing a digital shilling, adding that the document will serve as the basis for drafting a national roadmap for the possible implementation of a CBDC.
He recalled that, unlike cryptocurrencies such as Bitcoin, central bank digital currencies are backed by the government, issued in a centralized manner, and considered as digital versions of fiat money.
The Bank of Tanzania launched its exploratory work on CBDCs in January 2023, adopting a gradual and cautious approach in the field of digital monetary innovation.
