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The Central Bank of Tanzania formed a working group to study the risks and announced a restrained policy regarding the implementation of CBDC.
The group conducted research into various implementation options, methods of issuing and managing the state digital currency, and the Central Bank decided to take its time.
“Analysis of our observations shows that“Most central bankers around the world are taking a cautious approach to the CBDC implementation roadmap to avoid any potential risks that could disrupt the financial stability of the economy,” the Central Bank of Tanzania said in a statement.
Based on research results, the financial regulatorThe country said that no final decision has been made on the rollout of a central bank digital currency (CBDC) in the country, and the bank will take a “phased, cautious and risk-based approach.” The regulator believes that the dominance of cash, inefficient payment systems, high implementation costs and the possibility of disrupting the existing financial ecosystem are just some of the challenges that central banks face in implementing CBDC.
Previously, four countries at once - Denmark, Japan, Ecuador and Finland - refused
from plans to introduce a state digital currency, motivating the decision by insurmountable structural and technological difficulties that arise during the project implementation stage.
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