Tanzania Considers Crypto—And Boosts Bitcoin—As Nations Line Up Behind El Salvador To Embrace Decentralized Finance


Top line

Tanzania was the last country to signal its support for digital assets this weekend when its president ordered financial authorities to prepare for the widespread use of cryptocurrencies and continue to hike bitcoin prices after El Salvador became the first country to use bitcoin last week as legal tender and Elon Musk outlined Tesla plans to re-accept Bitcoin as tender.

Woman’s hands hold gold bitcoin on a thread


Important facts

President Samia Suluhu Hassan called on the Tanzanian central bank on Sunday to “work on” to facilitate the widespread use of cryptocurrencies in the East African nation.

While many in Tanzania have not yet embraced decentralized funding, Hassan said the central bank should “be prepared for the changes and not be caught off guard”.

Hassan is one of the senior politicians who has signaled his support for digital assets since El Salvador voted in favor of Bitcoin legal tender last week and helped fuel the declining market.

The announcement helped Bitcoin gain nearly 10% in 24 hours, reaching nearly $ 40,000 per token on Monday morning.

The token was also boosted by news that Tesla would resume using Bitcoin if the asset was proven to be made using around 50% clean energy.

What to look out for

Bitcoin adoption in Nigeria is growing among the population, which also gained momentum over the weekend. Russell Okung, an NFL player of Nigerian descent, penned an open letter to the Nigerian President urging the country to adopt a Bitcoin standard to avoid “relapsing”. Jack Dorsey, CEO of Twitter and Square, one of the most famous crypto enthusiasts, tweeted his support for the idea several times over the weekend.

Key background

While Bitcoin is hitting its highest level in several weeks, Bitcoin, along with the broader crypto market, is still recovering from a slump that quickly wiped over $ 700 billion in market value. This slump was primarily caused by Tesla announcing it would no longer accept Bitcoin due to environmental concerns and China cracking down on the assets. Support from countries like El Salvador and other countries and banks that may introduce Bitcoin or other cryptocurrency tokens, the market has slowly recovered but remains volatile. Aside from Tanzania, lawmakers in a number of Latin American countries have at least casually expressed interest in following in El Salvador’s footsteps, including Brazil and Panama.

further reading

El Salvador is making history as the first country in the world to create Bitcoin as legal tender (Forbes)

Tanzanian President Calls on Central Bank to Prepare for Crypto (Coin Telegraph)