Tanzania: Experts - Why Tanzania Is Not Ready for Cryptocurrencies

Dar es Salaam — Many observers have expressed concerns on Tanzania's competency in the hard-to-trace transactions following President Samia Suluhu Hassan's call for the central Bank of Tanzania (BoT) to begin the necessary preparations for virtual-cum-cryptocurrencies.

"We still have a long way to go - and for the central bank to go recklessly into the business would be suicidal. Apart from very limited knowledge on cryprocurrencies, the biggest issue is that we do not as a country have a broker or even investment and trade advisers to facilitate going into blockchain or cryptocurrency as a nation," commented Mr Ismail Sabuni, a cryptocurrency trader.

Mr Sabuni added that, on top of not having competent brokers, cryptocurrency is volatile and expensive - which could adversely affect the inflation rate.

He said "Tanzania will be required to print more money to facilitate such trade as a country and enable its citizens to engage in crypto markets. Such that, as of Monday, one bitcoin was worth $40,300 (About Sh93.895 million). Just before President Hassan's speech, a bitcoin was worth $39,000 (Sh90.86 million)".

Experts say crypto markets are volatile because there's no central authority to stop them from being so, if it were to be used as cash flow organization, government or individuals would have to write of loss if the value of a crypto coin decreases.

"Public awareness also is much needed," he added.

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