The cryptocurrency industry likely has a chance to penetrate the Tanzanian market as the nation’s federal government sends directives that could likely result in cryptocurrency unbanning. The East African country banned cryptocurrency transactions in November 2019. However, Tanzania’s president is gradually appreciating the innovation.
President Samia Suluhu Hassan called on the Central Bank to begin exploring the potentials of the crypto market. His comments were likely inspired by the current happenings in El Salvador. Hassan wants the Central Bank to be up to date with what the crypto industry has to offer, which suggests that the ban could be lifted soon.
The Tanzanian Bankers Association Chairman, Abdulmajid Nsekela, sees the reversal of the crypto ban as a chance to diversify financial transactions that have been predominated in cash. He mentioned the clear-cut potentials of blockchain technology, saying that regulators should not be caught unaware by the developing industry.
African Cryptophobia: Why African Governments Keep Banning Crypto
Most governments in Africa have been slow to grasp the concept of blockchain technology. Central Banks in the continent attribute the crypto industry to a lot of nefarious activities like money laundering, tax evasion, terrorism financing amongst others.
Nigeria currently leads the continent in Bitcoin transactions and is second behind North America in peer-to-peer crypto trading. The West African country resorted to p2p methods as the Nigerian government banned cryptocurrency transactions. Central banks in Kenya, Morocco, and Algeria recently banned the industry.
However, Africa might not restrict cryptocurrencies for long as most nations are rethinking the concept. Ghana is giving a go for a Central Bank Digital Currency (CBDC) and has announced that it is at the last stage of its development.
Africa could likely respond to the enticing cryptocurrency market as many young Africans see the underlying potentials the crypto industry has to offer.