The Banking company of Tanzania is reportedly planning to introduce a fundamental depository financial institution digital currency, or CBDC, for the African nation after neighboring countries appear similar initiatives.

Co-ordinate to a Friday Bloomberg report, Bank of Tanzania Governor Florens Luoga said on Thursday that Tanzania was planning to follow Nigeria's example in rolling out its ain CBDC. Luoga reportedly said that the central banking company had "already begun preparations" for a digital shilling, Tanzania's currency since 1966.

In preparing to launch a CBDC, the governor said Tanzania is too planning to expand research into digital currencies and strengthen the capacity of primal bank officials. If successful, Tanzania would be among a select group of countries currently exploring a rollout of a CBDC.

Many industry experts are looking at People's republic of china leading the style to the adjacent CBDC launch from a major world economic system. The state's key bank has conducted trials in major cities since April 2022 and is planning a larger exam at the Beijing Wintertime Olympics in 2022.

According to Luoga, the initiative from Tanzania's central bank was driven past Nigeria's launch of its own CBDC, the eNaira, last month. The CBDC is only the 2d to be fully available to the public after the Bahamas became the first nation in the globe to launch a central bank digital currency in October 2022.

Related: Zimbabwe may be the next land to embrace Bitcoin as legal tender

Cryptocurrencies are largely banned in Tanzania following a November 2022 directive from the country'due south central depository financial institution saying the digital assets were not recognized by local law. Even so, the Bank of Tanzania is reportedly working to overturn this ban following President Samia Suluhu Hassan saying in June the land should exist preparing for crypto.