Cryptocurrencies not banned, traders should invest at their own risk – regulation

Tanzania's central bank governor recently revealed that cryptocurrencies are not banned in the country, but warned those engaging in crypto-related investments that they do so at their own risk.

Central bank open to ideas

Bank of Tanzania (BOT) Governor Florens Luoga recently stated that the central bank has not banned cryptocurrencies and that those who put money into crypto-related investments do so at their own risk.

Even in his Remarks Published by The Citizen, Luoga revealed that the BOT – which is now exploring the possibility of issuing a digital currency – is still open to ideas on how it can regulate cryptocurrencies.

"We cannot ban something we don't yet have expertise in, or regulate a game we don't really know how to play. We have not yet reached a position where we can taste [sic] cryptos, but we welcome applications from interested parties. Everyone should feel free to submit their ideas for consideration," Luoga is quoted as saying.

By asking for the opinion of interested parties, Luoga appears to repeat an earlier promise to heed President Samia Suluhu Hasan's call for the country's financial chiefs to prepare for crypto. How reported from Bitcoin.com News in July, after the president made the call, the Tanzanian government took the first step through its ICT ministry when it announced the creation of a blockchain advisory team. Later the central bank itself promised it would follow the president's call.

The central bank’s CBDC plan

Now, less than six months later, Luoga appeared to make good on that promise as he told financial sector stakeholders in the capital that the public is still allowed to experiment with cryptocurrencies. This is in contrast to the BOT's position in 2019, which suggested that cryptocurrency trading violated foreign exchange regulations.

Regarding the BOT's plan to eventually launch a digital currency, Luoga is quoted as saying that the central bank's goal is to "minimize, if not mitigate, the potential impact of a CBDC on the central bank's core business of monetary policy, financial stability, integrity, and payment system structure and development."

What do you think about this story? Tell us what you think in the comments below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and author in Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

Photo credits: Shutterstock, Pixabay, Wiki Commons