The central bank of Tanzania says it is still debating whether to launch a central bank digital currency (CBDC), but it would proceed with a “phased, cautious, and risk-based approach” after finding several issues that might hinder its adoption.

The Bank of Tanzania organized a multidisciplinary technical team to investigate the risks and advantages of CBDCs following its 2021 announcement on a potential CBDC launch, according to a public notice issued by the institution on January 14.