Report: Tanzania Closer to Launching a CBDC

May 12, 2022 Bitcoin.com

Crypto-loving anti-vax group seeks like-minded talent to live in African ‘paradise’

January 21, 2022 Coin Telegraph

Africa

It's unclear what role crypto may play in the community, given Tanzania's central bank banned digital assets in November 2019.

A group of people who have claimed they refuse to take any of the COVID-19 vaccines — at a time when the number of cases around the world is at an all-time high — is reportedly looking for a cryptocurrency expert to join them in Africa.

According to a Friday report from Vice, the group of anti-vaxxers is building a “community” off the coast of southeastern Africa and plans to hire private chefs, television presenters, and crypto experts. The company behind the group, Liberty Places, is a self-described real estate firm based out of the archipelago of Zanzibar. It has previously posted to social media regarding its plans to use “the latest technologies from blockchain to solar energy” in addition to criticizing the use of masks in fighting the pandemic.

In spite of our view this morning; knowing that testing, masks, lockdowns, social distancing are now a structural norm in Europe and will return every year of your life, is ample enough reason to plan an exit! pic.twitter.com/aino9GsoUD
— Liberty Places Ltd (@liberty_places) January 16, 2022

Vice reported the group had praised Zanzibar for not implementing “mask mandates, social distancing measures or lockdowns, nor has it enforced any requirement for mandatory vaccines,” describing the island as “free from meddling bureaucracy.” The comments come at a time when the 7-day average number of new cases of COVID-19 is more than 3 million, and many public health officials and lawmakers continue to call for the use of social distancing, wearing masks, and getting vaccinated and boosted when possible.

Many countries around the world are still closed to short-term visitors, with others that aren’t requiring a combination of proof of vaccination, quarantining at a hotel, and a negative COVID-19 test. For visitors from the United States, Tanzania stands out as a country that allows tourists to enter with only a negative test — no mandatory quarantine or vaccination requirement. There is inconsistent data on the number of new cases in the country, but the limited size of Zanzibar makes it unlikely to be able to accommodate millions of anti-vaxxers so locals concerned about the virus could still practice social distancing.

Tanzania's central bank banned crypto in November 2019, but it has reportedly explored overturning its decision following comments from President Samia Suluhu Hassan in June urging the central bank to prepare for Bitcoin (BTC) and digital assets. The country is also reportedly planning to introduce a digital shilling after neighboring countries announced initiatives exploring CBDCs.

Cointelegraph reached out to Liberty Places, but did not receive a response at the time of publication.

Tanzania reportedly makes plans to launch CBDC

November 26, 2021 Coin Telegraph

Africa

The central bank has “already begun preparations” for a digital shilling, according to Bank of Tanzania Governor Florens Luoga.

The Bank of Tanzania is reportedly planning to introduce a central bank digital currency, or CBDC, for the African nation after neighboring countries announced similar initiatives.

According to a Friday Bloomberg report, Bank of Tanzania Governor Florens Luoga said on Thursday that Tanzania was planning to follow Nigeria’s example in rolling out its own CBDC. Luoga reportedly said that the central bank had “already begun preparations” for a digital shilling, Tanzania’s currency since 1966.

In preparing to launch a CBDC, the governor said Tanzania is also planning to expand research into digital currencies and strengthen the capacity of central bank officials. If successful, Tanzania would be among a select group of countries currently exploring a rollout of a CBDC.

Many industry experts are looking at China leading the way to the next CBDC launch from a major world economy. The country’s central bank has conducted trials in major cities since April 2020 and is planning a larger test at the Beijing Winter Olympics in 2022.

According to Luoga, the initiative from Tanzania’s central bank was driven by Nigeria’s launch of its own CBDC, the eNaira, last month. The CBDC is only the second to be fully available to the public after the Bahamas became the first nation in the world to launch a central bank digital currency in October 2020.

Cryptocurrencies are largely banned in Tanzania following a November 2019 directive from the country’s central bank saying the digital assets were not recognized by local law. However, the Bank of Tanzania is reportedly working to overturn this ban following President Samia Suluhu Hassan saying in June the country should be preparing for crypto.

Tanzania’s Zanzibar reportedly exploring ways to adopt crypto

November 15, 2021 Coin Telegraph

Cardano

More African countries are considering adopting Bitcoin as the local crypto market surged over 1,200% in one year.

Zanzibar, a semi-autonomous territory in the United Republic of Tanzania, is reportedly exploring ways to regulate and adopt cryptocurrencies like Bitcoin (BTC).

The government of Zanzibar is planning to conduct meetings with stakeholders like banks and ministries to discuss policies related to the cryptocurrency industry. Zanzibar Minister of State Mudrick Soraga announced the plans to Tanzanian news agency The Citizen on Nov. 10.

The move is part of a potential plan to adopt crypto as Soraga previously met with local crypto enthusiasts who assured him that Zanzibar should recognize and adopt cryptocurrency as an official transaction method amid the total crypto market hitting over $3 trillion. “We are seeking views on the matter before deciding whether it is viable or not,” the official reportedly said.

According to The Citizen, there is much work to be done for Zanzibar before the jurisdiction would be able to adopt cryptocurrency. As such, the local government will have to come up with policies explaining the objectives and benefits of the digital currency through the Bank of Tanzania, according to professor Haji Semboja at the State University of Zanzibar.

Tanzania Bankers Association chairman Abdulmajid Nsekela reportedly noted that Zanzibar has a lot to learn about the growing technology. “We need to start drawing lessons from other countries on how this technology works. For cryptocurrency to be effective, we will need policies for cryptocurrency,” he said.

Zanzibar’s latest news comes months after Tanzanian president Samia Suluhu Hassan urged the country’s central bank to begin exploring cryptocurrencies like Bitcoin in June. The move came shortly after El Salvador passed its Bitcoin law in early June, eventually making the country the firs to adopt Bitcoin as legal tender in September 2021.

According to some industry figures like Cardano founder Charles Hoskinson, a lot more countries will eventually follow in the footsteps of El Salvador by making it the national currency or adopting crypto for transactions like central bank settlements. Though Hoskinson did not elaborate on what countries are likely to be the first to follow El Salvador, African countries could apparently make a case as the African crypto market surged over 1,200% in one year.

In early November, Hoskinson’s Input Output Hong Kong (IOHK), the research and development arm behind Cardano (ADA, reportedly held secret meetings with some officials in Zanzibar. As previously reported, Africa has been one of IOHK’s key strategic plans over the years, with the organization launching a number of initiatives in multiple African jurisdictions.

Jelurida will launch 30-day blockchain education campaign across East Africa

October 13, 2021 Coin Telegraph

Africa

The tour will begin in Zanzibar on Oct. 23 before continuing on to Kenya, Rwanda, Uganda, Zambia, Malawi, Mozambique, Zimbabwe, and Tanzania.

The African arm of the company behind the Ignis, Nxt and Ardor blockchains will be launching a multi-country tour to provide blockchain education in the public and private sectors.

According to information provided to Cointelegraph, Jelurida Africa said it would begin a blockchain expedition starting with Tanzania’s self-governing state of Zanzibar on Oct. 23 before continuing on to Kenya, Rwanda, Uganda, Zambia, Malawi, Mozambique, Zimbabwe, and Tanzania. The group aims to promote blockchain education with meetups in universities, financial institutions and public offices. The team of distributed ledger technology and smart contract experts said it plans to reach out to local lawmakers and private firms as well as developers and blockchain enthusiasts in the respective countries as part of the tour.

“If you look at our relationship within the country or even outside the country you realize there is a need for trust before we can easily scale before we can easily improve on our dealings with our neighbors so there is need for trust, there is need for the immutability of data,” said Jelurida Africa managing director Adedayo Adebajo in a Tuesday interview with KUTV Kenya.

Adebajo added:

“When it comes to deploying solutions on the blockchain, it becomes easy for anybody to trust you even without knowing you because they have your digital identity and they can verify your previous transactions without having to rely on total party participation.”

Some of the countries along Jelurida Africa’s planned route have a mixed relationship with regulating crypto and blockchain. The Bank of Tanzania has banned cryptocurrencies since 2019, but in June, President Samia Suluhu Hassan called for the central bank to not be “caught unprepared” when dealing with innovative financial technology.

Despite disapproval from many African governments and central banks, crypto usage in the region has continued to grow. Digital analytics firm Chainalysis reported in September that the cryptocurrency market in Africa has grown by more than 1,200% since 2020. In particular, P2P transactions provide a quicker and cheaper way for many crypto users in Africa to pay for international commercial transactions.

Other drivers for crypto adoption in the region may include remittances as a means to get around governments that limit the amount of money that people can send abroad. Some nations in Africa have also considered developing central bank digital currencies, with the central banks in Nigeria and Ghana announcing their CBDC plans earlier this year.

Tanzania central bank may rescind crypto ban after presidential endorsement

June 25, 2021 Coin Telegraph

Bitcoin ban

President Samia Suluhu Hassan’s positive stance on crypto could see Tanzania’s central bank reversing its previous cryptocurrency prohibition.

The Bank of Tanzania is reportedly working to overturn its ban on crypto amid favorable cryptocurrency comments made by the country’s president.

According to Reuters, Tanzania’s central bank has begun working on directives from the country’s federal government that could see a reversal of its November 2019 crypto ban.

As previously reported by Cointelegraph, president Hassan urged the central bank to begin exploring Bitcoin (BTC) and digital assets earlier this month.

At the time, Hassan enjoined the Bank of Tanzania to keep up with the times, given the growing popularity of cryptocurrencies.

These favorable comments on crypto came on the heels of El Salvador’s Bitcoin Law and a wave of positive BTC sentiment across several nations in Latin America.

However, in Africa, crypto-related regulations beyond central bank bans are yet to emerge. Back in February, Nigeria’s central bank also prohibited financial institutions in the country from servicing crypto exchanges.

For Abdulmajid Nsekela, chairman of the Tanzania Bankers Association, the move could help to diversify financial transactions in the country that are currently dominated by cash payments.

Nsekela also echoed the president’s comments about the Bank of Tanzania needing to become better acquainted with the crypto market, adding, “The most challenging element for regulators is to be caught by surprise by innovations.”

According to data from Useful Tulips — a platform that tracks peer-to-peer BTC trading across the globe — Tanzania ranks seventh in peer-to-peer trading volume in Sub-Saharan Africa. Nigeria still accounts for more than half of the region’s Bitcoin trading activity.

While clear-cut crypto regulations are yet to emerge on the continent, some nations are working toward floating central bank digital currencies. Indeed, the central banks of both Nigeria and Ghana have issued announcements to that effect in June.

Tanzanian president urges central bank to prepare for crypto

June 14, 2021 Coin Telegraph

BTC

Tanzania’s president wants the country’s central bank to begin exploring Bitcoin and digital assets.

Tanzania appears to be the latest emerging economy poised to embrace Bitcoin and crypto assets.

On June 14, Tanzanian president Samia Suluhu Hassan urged the country’s central bank to begin exploring crypto assets. Hassan emphasized the increasing impact of digital assets on global finance, stating: “We have witnessed the emergence of a new journey through the internet.”

She highlighted the lack of crypto adoption and development in the East African region, stating: “Throughout the region, including Tanzania, they have not accepted or started using these routes.”

“My call to the Central Bank is that you should start working on that development. The Central Bank should be ready for the changes and not be caught unprepared.”

Hassan’s comments come on the heels of numerous Latin lawmakers pushing for greater crypto adoption in other emerging economies, including El Salvador — where Bitcoin has been mandated as legal tender.

While African legislators have been slow to recognize and encourage the crypto economy, the region has been a hotspot for peer-to-peer (P2P) Bitcoin trading for years.

According to Useful Tulips, Sub-Saharan African is the second-largest region for P2P trading behind North America, representing roughly $16.5 million in weekly volume.

Nigeria represents half of the region’s volume, ranking behind the United States as the second-largest nation by P2P Bitcoin trading with $8.5 million in BTC changing hands weekly. Kenya is Africa’s second-ranked peer-to-peer market with more than $3 million in weekly trade, followed by Ghana with $2 million, and South Africa with $1.6 million.

Tanzania ranks seventh for the region with nearly $90,000 worth of trade over the past seven days.

Tanzania

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