Tanzania’s Central Bank says planning to regulate crypto

The central bank of Tanzania closed its eyes against the activities of crypto trading and said that ‘do trade at your own risk’. 

In the present time, most of the central banks are considering adopting blockchain technology but besides all these, they are also trying their best to restrict crypto assets-based activities. But there are few central banks, which are transparent in their point of view on crypto. 

In the latest, Tanzania’s apex bank (The bank of Tanzania) openly said that the people in Tanzania are open to trading with the crypto assets and there will be no responsibility for any kind of loss that the crypto investors will face. 

Florens Luoga, Governor at the Central Bank, took the opportunity to talk about crypto openly. Luoga said that cryptocurrencies are out of the law of Tanzanian and also we don’t know how to deal with them but we are planning to regulate it. 

“We can’t outlaw something that we are not yet competent with or regulate a game that we don’t know how it is played. We have not reached a position where we can properly regulate cryptocurrencies, but we welcome applications from interested parties,”

Governor also said that they will consider the ideas, which can help in the regulation of the crypto industry. He said: 

“All should feel free to present their ideas for consideration.”

The whole statement of the Tanzanian Central Bank governor was in favour of the crypto and crypto investors. Through the full speech, he tried to say that people should remain careful about their investment in this high volatility market and also suggested to remain away from the Defi platforms and rug pulls, which are common in the crypto space to face hack attacks.

Besides the crypto adoption, Luoga shared his point of view in favour of blockchain technology adoption with the idea of implementation of Central Bank Digital Currency (CBDCs). Luoga said:

“To ensure that our country is not left behind in the adoption of central bank digital currencies, the Bank of Tanzania has already begun to have its own CBDC,”

Read also: millennial millionaires are planning to add more crypto in their portfolio: CNBC