Samia Suluhu Hassan, the president of Tanzania, is trying hard to embrace the cryptocurrency with open arms. This move follows that of El Salvador, which introduces Bitcoin as legal tender.
Undoubtedly, the World Bank won’t be happy if another developing country jumps on crypto. However, if large parts of your population are unable to benefit from the global technology boom, any entry seems like a good idea. While Tanzania does not want to adopt Bitcoin as its currency immediately, President Hassan directed the Bank of Tanzania to prepare for crypto to come into the country, saying they should be “ready”.
At the same time, the actual cryptocurrency traders in Tanzania remain pessimistic about the president’s desire to go crypto. Her experience has taught her that there is nothing like it.
Education is the key
You’re right. The formation of cryptocurrencies should be the focus, and many believe it should come from the country’s central economic authority. Especially when the nation has such a young population, it’s easy to see why the government is on board.
One challenge that President Hassan faces in Tanzania is the general acceptance of crypto. Much of this depends on education and bipartisan support in the nation. One key note is that President Hassan took power after the late former President John Magafuli died of heart complications on March 21, 2021.
It is unlikely that former President Magafuli would have been so open to adopting crypto, citing his notoriously tough political stance. So far, President Hassan has not mentioned anything on environmental issues. Developed nations say the same thing, but most of them focus on creating their own digital fiat coins.
In a nation largely focused on agriculture due to its overwhelming dependency and classified as a “low-middle-income economy”. In 1985 the nation began the transition from a socialist command economy to a market economy. After this revision, Tanzania’s GDP rose a whopping 1/3 to $ 41.33 billion in 2014.
If the country’s desire to become economical in the modern geopolitical landscape continues, then adopting crypto makes sense. However, just like El Salvador, which has a notoriously low internet connection rate, Tanzania faces similar socio-economic problems. A plan to en masse crypto across the nation would have profound implications and no doubt many people would be left out of the loop while a select few see the most profits.
As more developing countries realize the potential of cryptocurrencies like Bitcoin, the pressure on crypto exchanges and services will add value to the crypto world. Only time will tell that the development of cryptocurrencies will have a negative impact.
While the World Bank may fear the decentralization of cryptocurrency, the United Nations is not. The international panel believes that research into the blockchain is a step in the right direction. What support would Tanzania receive from the UN?
That’s a good reason to look closely at this story.
If anything, a bit of short-term economic pain could translate into massive economic gains for places like Tanzania over the next few decades. Crypto has a high barrier to entry for everyone. It doesn’t matter if you are a country, a company or an individual.