While Bank of Tanzania (BOT) executives continue to reiterate that the central bank is ready to heed the government’s call to prepare for cryptocurrencies, some economists say Tanzania lacks the resources to adopt digital currencies.
Economists: Tanzania is the wrong candidate In their views, published by Citizen after the latest BOT update, opponents of Tanzania’s cryptocurrency argue that the lack of resources makes it “difficult to participate in world trade.”
A Citizen report cites Haji Semboja, a professor at the State University of Zanzibar, who suggests that Tanzania’s economic profile is making it difficult for the country to adopt cryptocurrencies. Semboja explained: “The development of our economy is a function of the development of the world’s money and commodity markets. I am not yet going to accept an instrument that will never benefit most people.
This is not only because of limited knowledge, but also the level of economic development. ” In support of his claims, Semboja points to the fact that countries that have expressed an interest in virtual currencies have gone so far as to “put in a political, regulatory and institutional framework to satisfy it”. Adoption of cryptocurrencies in Tanzania Another economist and business expert, Donath Olomi, is quoted as expressing his concerns about the country’s growing cryptocurrency adoption as such a trend could indicate that Tanzanians want to “keep their wealth out of the sight of the government.”
He argues that when “much of the wealth is not under government control, the country cannot use it to influence monetary policy.” Meanwhile, an anonymous economist – who claims to see parallels between investing in cryptocurrencies and betting – has suggested that “it was too early to think about cryptocurrencies.”
However, unlike other economists, he said that cryptocurrencies will only become efficient and effective after receiving the support of all central banks.
08-10-2021, Mr Advice TEAM