Tanzania’s central bank states it is still considering the introduction of a central bank digital currency (CBDC) but will be a taking “phased, cautious and risk-based method” after recognizing several difficulties that could affect its implementation.According to a Jan. 14 public notification from The Bank of Tanzania, because its 2021 statement about a possible CBDC rollout , the East African nation formed a multidisciplinary technical team to explore the risks and advantages of CBDCs. The bank exposed its team has carried out research study checking out various kinds of CBDCs, designs for issuance and management, and whether its CBDC must be token-based or account-based.”The outcome of the research study at this moment revealed that more than 100 countries in the world are at different phases of the CBDC adoption journey with 88 at research study, 20 proof of principle, 13 pilot and 3 at launch,” the bank said.The reserve bank

noted that at least four countries– Denmark, Japan, Ecuador and Finland– have actually publicly canceled CBDC adoption plans, while another six have actually moved away from digital currencies due to structural and technological challenges in the implementation phase.Some of these obstacles were high execution costs, the dominance of money, inefficient payment systems and the threat of interrupting the existing community, the bank said.A crucial location being looked at by the team is also the dangers and controls related to the issuance, distribution, counterfeiting and use of currencies.”Analysis of these findings suggest that bulk of central lenders throughout the world have taken a cautionary technique in the CBDC execution roadmap, in order to prevent any potential dangers that can interrupt financial stability of their economies, “it added.Related: IMF calls for tighter crypto regulation in Africa as

the market unfolds At this phase, the bank has not given a clear timeline for when it will decide on CBDCs in Tanzania, but states it will”continue to keep an eye on, research study and team up with stakeholders, including other reserve banks, in the efforts to arrive at a suitable and proper use and innovation for issuance of Tanzanian shillings in digital kind.”Following nearby nations’efforts to present CBDCs, Bank of Tanzania Governor Florens Luoga made a Nov. 26, 2021, announcement that plans were underway in Tanzania to expand research study into digital currencies and reinforce the capacity of reserve bank officials.Cryptocurrencies are largely banned in Tanzania following a November 2019

regulation from the Bank of Tanzania stating the digital possessions were not acknowledged by local law.