Tanzanian President, Samia Suluhu Hassan has called for the adoption of cryptocurrency in the country. In a recent statement issued by the president, she emphasized on the need for the country’s principal bank to begin preparations for the usage and adoption of cryptocurrency. She further acknowledged that the East African region is lagging behind compared to more advanced regions. The president enjoined the central bank not to be caught unprepared. Tanzania is one out of many sovereign states who are looking to adopt cryptocurrency, especially following El Salvador’s decision on making Bitcoin a legal tender.
El Salvador Sets the Pace, Others Looking to Follow
El Salvador’s epochal decision on Bitcoin is no longer news, however, the reactions that trailed the decision were wild. Few days after the Congress approved the bill, the Latin American country became a catalyst to other countries in the region. Paraguay and Mexico are making attempts towards adopting Bitcoin and even going ahead to make it a legal tender just like El Salvador did. On the contrary, China, Russia, US, have plans in motion to release centralized digital currencies known as Central Bank Digital Currencies (CBDCs).
The CBDCs, according to reports, are the governments’ responses to cryptocurrencies. Most of these countries have taken a hard line against cryptos in trying to regulate the space. China has given Bitcoin miners until the end of this month to stop mining activities in line with its carbon policy. The US is proposing imposing an almost 40% tax on capital gains exceeding $10,000.
President Samia Hassan referenced the use and adoption of cryptocurrencies in many countries around the world. She stressed that the East African country is not as advanced as other countries, urging the country’s central bank officials to keep up with the transformative and innovative trends emerging globally. The president asserted that the future of finance is cryptocurrencies, and as such the country should make attempts at being part of that future.
Proposed Crypto Adoption Emerging in Africa
In the same East African Region, Kenya is making attempts towards adopting cryptocurrency. The Central Bank of Kenya announced this year its intentions to adopt Bitcoin as its official currency. The National bank had decried the massive depreciation in the value of Shilling, the country’s official currency. Kenya’s Shilling has been declining since 2010 by almost 50% in comparison to the US dollar.
Kenya’s National Bank Governor, Patrick Njoroge points accusing finger at the International Monetary Fund (IMF) as being responsible for the decline in the value of the country’s official currency, apart from the effects instigated by the COVID-19 pandemic. He praised the move towards Bitcoin adoption as an apt and wise one, saying Bitcoin is the solution to the problem of depreciation. Meanwhile, the Central Bank of Nigeria is also looking at releasing a CBDC before the end of this year. The Nigerian government had earlier placed a ban on crypto transactions citing Naira-related reasons for the ban.