The Central Bank of Tanzania has warned the general public that acts of trading, marketing, and usage of cryptocurrencies are against the regulations of foreign exchange in the country.
According to the Directorate of Economic Research and Policy at the Central Bank of Tanzania, the bank conducted a study to assess the extent of the impact of cryptocurrency on the economy with the view of registering brokers.
The bank also claims some individuals are declaring to have engaged the bank on the use of virtual currency, which they have proved to be false.
Part of this statement talks about conducting a study to evaluate the scope of cryptocurrency and online forex trading and its effect on the country as a whole. Further, the results would determine whether or not to register brokers for cryptocurrency-related business.
The survey is expected to be done by visiting parts of Tanzania and talking to individuals to gather the needed information for decision making.
The above notice has become necessary due to a growing trend in Tanzania of the usage of cryptocurrencies. A major issue according to the bank is that some currencies are marketed and traded with the view that they are legal tender.
Since the Bank of Tanzania is the sole body mandated to issue banknotes and to declare a legal tender, it carries the mandate to caution members of the public to beware of their participation in the trading and exchange of virtual currencies, as they are not legally legitimate in Tanzania.
Growing Interest In African Crypto Ecosystem
Synonymously, the Twitter CEO, Jack Dorsey, is on a modern-day duty to Africa as he eyes Africa’s Bitcoin market. Although his trip was purposely to understand the challenges of starting a company here in Africa and finding ways of helping, there might be other reasons for his trip as we are aware of his plans to expand Twitter’s workforce in Africa.
Jack is not the only one who believes in Africa, the United Nations also considers Africa to be the next frontline for crypto. As a result of great feedback from natives of Africa on the mobile money system, Jack plans on planting the seeds of Bitcoin adoption at an early stage to help many Africans enter the formal economy.
Africa continues to see growing interest in its cryptocurrency ecosystem despite regulatory setbacks. It will be interesting to see how things shape up in 2020.