Tanzania: Bank of Tanzania Warns Public Against Use of Cryptocurrencies for Umpteenth Time

THE Bank of Tanzania has warned the public again against the use of cryptocurrencies amid growing use of the digitial currencies.

The Central Bank said in its latest warning over the weekend that cryptocurrencies have not been endorsed as legal tender and therefore its trading, marketing or use was in violation of the law.

"The Bank of Tanzania has noted with concern a growing trend of linking operations of cryptocurrencies as to have been endorsed by the bank to operate as a legal tender in the country despite a public warning issued on 12th November 2019," it said in a statement.

"This is, therefore, to remind the members of public and reiterate the early position that the only legal tender issued and accepted in the United Republic of Tanzania... is the Tanzanian Shilling.

Further, all other acceptable foreign currencies are traded by licenced institutions in the country in line with the Foreign Exchange Act, 1992.."

The foreign exchange regulatory framework does not include trading or usage of any virtual currency including cryptocurrencies, it said.

The central bank is among other East African regulators that have cautioned citizens against the lure of digital currencies as interest in virtual currencies is rising across the African continent.

Tanzania has joined the ranks of other East African countries such as Kenya and Uganda are embracing blockchain technology, the recordkeeping technology behind bitcoin, with inauguration of Blockchain Tanzania Community last year.

The Blockchain Tanzania Community enjoys support of other country associations in East Africa as well as all over Africa with some of notable partners include Blockchain association of Uganda, Africa Blockchain Alliance and Blockchain Association of Kenya, according to information posted on Blockchain Tanzania Community website.

Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions.

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