An unnamed spokesperson for the Bank of Tanzania (BOT) recently hinted that the top bank is “working in accordance with the instructions given,” suggesting that Tanzania may soon withdraw its 2019 encryption ban. Before the spokesperson made the above remarks, Tanzanian President Samia Suluhu Hassan called on the country’s financial leaders to prepare for cryptocurrency.
BOT action is praised
In a speech shortly after the legalization of Bitcoin in El Salvador, President Hassan pointed out the inevitability of cryptocurrency. However, as explained in a report, the central bank spokesperson did not disclose whether BOT plans to adopt existing cryptocurrencies such as Bitcoin, or whether it wants to issue its own digital currency.
Nevertheless, even if there is a lack of clarity, some members of the Tanzanian blockchain and crypto community welcomed these reports. For example, Abdulmajid Nsekela, president of the Tanzania Bankers Association, praised the BOT spokesperson’s report, but warned of future challenges. Nsekra said:
The most challenging factor for regulators is being surprised by innovation. A step-by-step preparation will help the central bank assess risks and propose countermeasures in advance.
In November 2019, the Central Bank of Tanzania banned cryptocurrencies, saying that local laws do not recognize these cryptocurrencies. However, after Hassan’s call, Tanzania has now joined several other African countries that have or plan to withdraw regulations that restrict cryptocurrencies and other emerging technologies.
At the same time, the same report also quoted Tellimer analyst Faith Mwangi who believed that Hassan’s call would be implemented slowly. Mwangi explained: “The tone of the Tanzanian President has changed obviously, but we have to wait to see if the central bank will take concrete steps to embrace cryptocurrency.”
The analyst also pointed out that Ugandan President Yoweri Museveni also pledged to revoke anti-crypto regulations. However, it is reported that the Central Bank of Uganda is still removing restrictions since the announcement in 2017.
How long do you think it will take BOT to completely reverse its 2019 encryption ban? Tell us what you think in the comments section below.
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