Bank of Tanzania (BOT) executives have reiterated the central bank’s desire to heed the government’s call to prepare for cryptocurrency, with some economists insisting that Tanzania lacks the resources needed to adopt such a national currency.
Economist: Tanzania is an unsuitable candidate
Opponents of Tanzania’s cryptocurrency argue that the lack of resources makes it “difficult to participate in global trade”, in their opinion published by Citizen following the latest BOT update.
For example, Citizen Report quotes Haji Sembozar, a professor at the State University of Zanzibar, who suggests that Tanzania’s economic profile makes it difficult for the country to adopt crypto. Samboja explains:
The development of our economy is a complete task of developing the global international currency and commodity markets. I have not yet adopted a device that will not benefit most people. This is not only due to limited knowledge, but also the level of economic development.
To support his point, Semboza points out that countries that have expressed interest in virtual currencies have simply “established policies, regulatory and institutional frameworks to meet them.”
Acceptance of crypto in Tanzania
Another economist and business expert, Donath Olomi, cited concerns about the growing adoption of cryptocurrencies in the country, as such trends could indicate that Tanzanians “want to keep their assets out of the government’s sight.” He argues that when “a significant portion of a resource is not under the control of the government, a country cannot use it to influence monetary policy.”
Meanwhile, an anonymous economist – who claims to see similarities between cryptocurrency investing and betting – suggested that “thinking about cryptocurrency is too early.” However, unlike his fellow economists, unnamed experts say that cryptocurrencies will only be effective and efficient if they have the support of all central banks.
Do you agree that Tanzania’s economic profile makes it difficult for the country to accept crypto? Let us know what you think in the comments section below.
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