1 year ago
1 min read
Tanzania Slows Down on CBDC Adoption After Initial Research
The Bank of Tanzania has been researching the introduction of a Central Bank Digital Currency (CBDC) since 2021, and has since formed a multidisciplinary technical team to explore the risks and benefits of CBDCs. The team has studied different types of CBDCs, models for issuance and management, and whether the currency should be token-based or account-based. However, the Bank of Tanzania has identified several challenges that could impact the implementation of a CBDC. These challenges include high implementation costs, dominance of cash, inefficient payment systems, and the risk of disrupting the existing financial ecosystem. Additionally, some countries have publicly canceled