Tanzania central bank may rescind crypto ban after presidential endorsement

The Tanzanian government has come under fire for its decision to ban cryptocurrency, but here’s hoping the decision will be reversed. The central bank of Tanzania, the Bank of Tanzania (BoT), had announced that it would be banning all crypto activity in the country. This was prompted by the recent recommendation of the government’s Financial Crimes Prevention Act, which called for the “prohibition of the use of crypto-currencies in the country,” according to the State House News.

According to reports in the local media, the governor of the Tanzania central bank, Mr. Abdullahi Mohammed, is contemplating lifting the ban on cryptocurrency usage that was imposed in the country. The governor is of the opinion that  banning the use of cryptocurrency in the country would hamper the economic growth of the country.

Following a meeting on Thursday, the central bank of the East African nation of Tanzania is reportedly planning to lift its ban on cryptocurrencies, according to local sources.

The Bank of Tanzania is reportedly working on lifting its ban on cryptocurrencies after the country’s president spoke positively about cryptocurrencies.

According to Reuters, the Central Bank of Tanzania has begun working on directives from the country’s federal government that could lift the ban on cryptocurrencies in November 2019.

As Cointelegraph previously reported, earlier this month President Hassan urged the central bank to investigate bitcoin (BTC) and digital assets.

Hassan then urged the Bank of Tanzania to get with the times, given the growing popularity of cryptocurrencies.

These positive reviews of the cryptocurrency came after El Salvador passed a bitcoin law and a wave of positive sentiment towards BTC in several Latin American countries.

However, regulation of cryptocurrencies, apart from central bank bans, is yet to be developed in Africa. In February this year, the Central Bank of Nigeria banned financial institutions in the country from operating exchanges for cryptocurrencies.

According to Abdulmajid Nsekela, president of the Bankers Association of Tanzania, the initiative could help diversify financial transactions in a country currently dominated by cash payments.

Related: Tanzanian president urges central bank to prepare for cryptocurrencies

Nsekela also echoed the president’s comments that the Bank of Tanzania needs to become more familiar with the cryptocurrency market, adding: The most difficult element for regulators is to be surprised by innovation.

Tanzania is the seventh largest peer-to-peer trader in sub-Saharan Africa, according to Useful Tulips, a platform that tracks peer-to-peer BTC trading worldwide. Nigeria still accounts for more than half of bitcoin exchange activity in the region.

While the continent has yet to develop clear regulations for cryptocurrencies, some countries are working to create digital currencies with floating central banks. Indeed, the central banks of Nigeria and Ghana made statements to that effect in June.Last month, Tanzania’s central bank banned cryptocurrency exchanges and trading, forcing a number of local businesses to close down. The ban was reportedly implemented after President John Magufuli had threatened to shut down all companies that deal in cryptocurrencies. “The president has made it clear that he wants the [ban] to continue,” the central bank’s governor said. “So, if the central bank in the future wants to consider a resumption of the trading of some crypto-currencies, it must first get the president’s approval in writing.”. Read more about what is crypto trading and let us know what you think.

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