President Samia Suluhu Hassan has directed experts at Tanzania Central Bank to begin necessary preparations that will lead to adoption of cryptocurrencies as the future of finance.
“The Central Bank should be ready for the changes and not be caught unprepared,” she said on Sunday.
President Samia said Tanzania’s central bank should prepare for a step change in global attitudes towards banking, “We have witnessed the emergence of a new journey through the internet.”
“I know that throughout the nation, including Tanzania, they have not accepted or started using these routes. However, my call to the Central Bank is that you should start working on that development.”
However, President Samia’s Cryptocurrency project has attracted massive criticism.
Many observers have expressed concerns on Tanzania’s competency in the hard-to-trace transactions.
“We still have a long way to go – and for the central bank to go recklessly into the business would be suicidal. Apart from very limited knowledge on cryprocurrencies, the biggest issue is that we do not as a country have a broker or even investment and trade advisers to facilitate going into blockchain or cryptocurrency as a nation,” commented Mr Ismail Sabuni, a cryptocurrency trader.
Experts say crypto markets are volatile because there’s no central authority to stop them from being so, if it were to be used as cash flow organization, government or individuals would have to write of loss if the value of a crypto coin decreases.
Sabuni added that, on top of not having competent brokers, cryptocurrency is volatile and expensive – which could adversely affect the inflation rate.
He said “Tanzania will be required to print more money to facilitate such trade as a country and enable its citizens to engage in crypto markets. Such that, as of Monday, one bitcoin was worth U$40,300. Just before President Hassan’s speech, one bitcoin was worth U$39,000”.