Tanzania is getting closer to launching a central bank digital currency (CBDC) which gives the country’s residents a “safe alternative,” the central bank governor has said. However, no date for the digital currency launch has been given.

Growing Interest in Cryptocurrencies

According to Florens Luoga, the governor of Tanzania’s central bank, his country is inching closer to the launch of a central bank digital currency (CBDC). When launched, the CBDC is expected to counter the growing interest in privately issued cryptocurrencies, a report has said.

In remarks made during an interview, Louga suggested the Bank of Tanzania (BOT) is also preparing for the launch of a CBDC because it cannot ignore the technological advances in money. The governor claimed that BOT’s digital currency will provide users with an alternative that is safer than cryptocurrencies. He said:

It’s important for us to provide a central bank digital currency as a safe alternative because many people are being affected by cryptocurrency speculators.

A Global Phenomenon

The governor added that the central bank has since sent officials to countries whose respective CBDCs have progressed. While many central banks have touted CBDCs as an alternative to cryptocurrencies, few have actually piloted their respective centralized assets. In Africa, only the Nigerian central bank has so far launched a CBDC, while a few others are still at the exploratory or research stages.

Meanwhile, when asked about the launch date of Tanzania’s digital currency, Luoga reportedly declined to state when this is likely to happen. He did, however, emphasize that the BOT cannot ignore this phenomenon.

“Almost worldwide, central bank governors are in training right now and holding discussions on how to bring it about,” Luoga argued.