Bank of Tanzania Warns Public Against Use of Cryptocurrencies

bank of tanzania

Bank of Tanzania in a public notice has warned the public against using cryptocurrencies. Furthermore, the notice states that cryptocurrencies are not legally authorized in Tanzania.

Tanzanian Shilling – The Only Acceptable Legal Tender

The notice further mentions that it has noted a growing trend among the public engaging in cryptocurrency-based activities. Also, the latter highlights the fact that some entities in Tanzania are marketing the perception that cryptocurrencies are legal tender in the country. The Bank cleared its stance about the use of virtual currencies.

Source- Twitter

Furthermore, the bank has warned the public against the trading, marketing and usage of virtual currencies. The reason for the same has been stated as the violation of existing foreign exchange regulations. As a matter of fact, the Bank of Tanzania is the sole institution in Tanzania to issue banknotes and coins in the country. The latter has declared that the only acceptable and used legal tender in the country is the Tanzanian Shilling.

Bank Of Tanzania Conducted Study to Assess the Impact of Cryptocurrencies

Earlier, in August a circular purported to be coming from the Directorate of Economic Research and Policy at the Central Bank of Tanzania (BoT) revealed that the bank is conducting a study to assess the extent of cryptocurrency impact on the Tanzanian economy.

Source- Bank of Tanzania

A part of the circular reads

“Please be informed that the Bank of Tanzania is conducting a study to assess the extent of Cryptocurrency and Online Forex Trading and its implication to the economy in Tanzania. The result of this survey will determine whether or not there is any need to register brokers for this business in the country.”

The letter went on to mention that the Bank will conduct a survey by visiting different parts of Tanzania and then came to a decision.

How will the public react to the circular issued by the Bank of Tanzania? Let us know, what you think in the comments below!

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