Dar es Salaam. The Bank of Tanzania (BoT) is now awaiting government directives after finalising a comprehensive study on the potential introduction of a Central Bank Digital Currency (CBDC).
The study findings were completed in August this year, BoT governor Emmanuel Tutuba told The Citizen, adding that the report will soon be submitted to relevant authorities for further review and decision-making.
“I cannot release the findings yet, as they must first be reviewed by the appropriate government bodies to determine whether there is a need to establish a legal framework,” he said.
Mr Tutuba stressed that it is now up to the government to decide the next steps based on the report’s recommendations.
Recently, BoT’s Director of Financial Deepening and Inclusion, Mr Kennedy Komba, said the report outlines both the potential benefits and risks of introducing a digital shilling. He added that it would also inform the development of a national roadmap for CBDC implementation.
“Unlike cryptocurrencies such as Bitcoin, CBDCs are digital representations of a country’s currency; they are government-backed and centrally issued,” Mr Komba said.
He noted that while cryptocurrencies are privately issued and treated as assets, CBDCs function as digital versions of fiat money.
BoT began exploring the concept of CBDCs in January 2023, adopting a phased, risk-based approach that reflects a cautious but progressive stance on digital monetary innovation.
Mr Tutuba also cited an earlier internal study carried out in 2021 that examined global CBDC developments and drew lessons from other countries. “Money should be a medium of exchange and a store of value. It must offer convenience, not disruption,” he said.
The government has consistently reiterated that cryptocurrency use remains illegal in Tanzania.
“We have repeatedly said it is an illegal business. The public should avoid it. Those engaging in it do so at their own risk,” the government warned.
Concerns around money laundering, terrorism financing, and counterfeit digital assets have been cited as key reasons for maintaining the ban.
A regional report released in June last year reviewed economic trends and digital finance policies across East African Community (EAC) member states. It found significant variations in cryptocurrency regulation, ranging from outright bans to emerging regulatory frameworks.
Although Tanzania maintains a de facto ban on crypto trading, the report noted that the country — alongside Kenya — remains one of the region’s leaders in crypto adoption, despite a lack of official data.
The report also highlighted the potential of blockchain and digital currencies to promote financial inclusion, create jobs, and drive innovation in sectors such as health, education, and governance.
It cited Kenya’s use of blockchain technology to enhance electoral transparency during its 2022 general election as a notable example.
The report further urged EAC member states to work with international bodies, including the International Monetary Fund (IMF), to strengthen digital finance infrastructure.
Recommendations included institutionalising CBDC trading, creating regional crypto clearinghouses, and developing clear regulations to address fraud, tax evasion, and systemic risks.
