In the quiet corners of Tanzania’s financial corridors, a digital storm is brewing. It’s not loud, but it’s gaining force.

With over 70 percent of Tanzanians still un-banked and many young people eager to join the global digital economy, the real question is no longer whether   to embrace cryptocurrency—but how. 

Should Tanzania embrace digital currencies as a tool for innovation and empowerment or ban them outright to preserve control over its economy?

For political economist Dr. Bravious Kahyoza, the answer is urgent and clear: Regulate, don’t ban.

“We’re already among the top 20 countries in the world for crypto adoption,” Dr. Kahyoza says. “This is happening—with or without regulation. It’s time to act.”

Sitting in his Dar es Salaam office, Dr. Kahyoza speaks with calm precision, but his words carry the weight of a system in flux. 

At the heart of his argument is a core principle: preserve the Tanzanian Shilling, but open the gates to responsible innovation. Cryptocurrencies, he argues, should be treated as tradable assets—not legal tender.

 This crucial distinction ensures that Bitcoin won’t replace the shilling in your pocket, but Tanzanians can still invest in and benefit from the growing crypto economy.

He says the  approach aligns with the Bank of Tanzania Act, giving room for innovation while protecting monetary sovereignty.

And the continent offers compelling case studies.

In Kenya, over 4.5 million people are exploring crypto through a government-backed "sandbox"—a controlled environment for innovation.

 South Africa has taken a step further, introducing a phased licensing system to bring crypto players under legal oversight while fostering growth.

Tanzania, however, has taken a more cautious path.

 In 2019, the government banned cryptocurrency trading, citing concerns over scams and monetary destabilization. At the time, the move was defensible. 

Today, Dr. Kahyoza believes that caution has turned into stagnation.

“The ban has outlived its usefulness,” he says. “We must lift it—under strict controls.”

Among his proposals: a 3 percent tax on crypto transactions, smart regulation under the National Payments System Act, and amendments to Section 15, which would legally license digital payment platforms, including crypto exchanges.

These aren’t just technical fixes. They represent a new financial frontier, one where Tanzania joins the global conversation on Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, becoming a credible player in a rapidly evolving financial landscape.

But Dr. Kahyoza’s vision goes beyond just private cryptocurrencies like Bitcoin and Ethereum. 

He also supports the idea of a Central Bank Digital Currency (CBDC)—a digital Tanzanian Shilling backed by the state.

Here, too, Africa offers a lesson: Nigeria’s eNaira has boosted digital payments by 20 percent and attracted nearly $1 billion in investment. 

A Tanzanian CBDC could replicate that success—if done with care. Yet risks remain. The same tools that enable freedom can also be misused. 

Dr. Kahyoza warns of scams, market crashes, and fraudulent platforms that prey on digital illiteracy.

“People need to know how to avoid fraud,” he says. “Africa lost $3.7 billion to crypto scams in 2022. We cannot afford ignorance.”

That’s why he champions a national public education campaign, targeting youth, traders, and tech entrepreneurs alike.

And then there’s the bigger picture. Tanzania cannot afford to move in isolation.

The East African Community’s 2024 digital finance policy framework offers a path for regional cooperation, harmonizing regulations across borders to avoid legal conflict and encourage cross-border trade.

Beyond the region, the world is already taking action. 

Over 130 countries are aligning with global crypto standards set by organizations like the International Monetary Fund (IMF) and the Financial Action Task Force (FATF).

 For Tanzania to remain competitive and credible it must do the same.

"The message is simple: crypto is not going away. The only choice now is whether we lead its evolution—or fall victim to its chaos," he explains.

If policymakers move with courage and clarity, Tanzania can unlock a powerful new financial chapter. 

One that blends sovereignty with innovation and caution with ambition.

"We stand at a digital crossroads. The path we choose now could define our financial future for decades to come,“ he added.