Tanzania Crypto: Sub-Saharan Stablecoin Series
Karibu, gentle reader! Tanzania is a land of epic landscapes – from Kilimanjaro’s peak to Zanzibar’s spice shores – and equally notable economic contrasts. We’re known for peace and steady growth, yet everyday Tanzanians juggle shilingi and mobile phones to make ends meet. If you’ve followed this series from Zimbabwe and Zambia to Mozambique, Kenya, Namibia, Nigeria, and Ethiopia, you know the drill: vital stats, what’s happening, what hurts, what helps.
A mobile money agent kiosk in East Africa. Services like M-Pesa and Airtel Money are ubiquitous in Tanzania’s towns and villages, highlighting the reach of digital finance in an economy where many people lack formal bank access.
Vital statistics
Population (2025): ≈ 70.5 million (median age ~17.5; urban ~40%). Young and rural-skewed, with a huge youth bulge.
GDP (2025): ~US$89 billion (nominal); ~US$293.6 billion (PPP). A lower-middle income economy in East Africa’s top 10 by size.
Real GDP growth (2025): ≈6% (forecast; up from ~5.4% in 2024). One of the region’s faster growers, barring shocks.
Inflation: ~3% y/y (recent CPI); below 5% BoT target. Low and stable, thanks to prudent monetary policy and good harvests.
Local currency: Tanzanian Shilling (TZS) – introduced 1966 to replace the East African shilling. Managed float; currently around TZS 2,500 per US$ after gradual depreciation.
Major industries: Agriculture (cash crops like coffee, cashew, cotton), mining (gold, diamonds, tanzanite), tourism (safaris, parks, beaches), light manufacturing (agro-processing, cement, textiles). Agriculture employs ~65% of workers, while tourism and gold bring vital foreign exchange.
Fintech & mobile adoption: High mobile money usage – ~45% of adults had a mobile wallet by 2021. Multiple providers (M-Pesa, Airtel Money, Tigo Pesa) handle billions in transactions, though smartphone penetration is growing from a low base. Digital payments thrive even as many remain unbanked.
Tanzania’s economic backdrop: steady growth, young population, and cash friction
Tanzania’s economy has been a quiet steady performer. We boast solid GDP growth ~5–6% in recent years, underpinned by agriculture, construction, and services. High global prices for our gold and record post-pandemic tourist arrivals have narrowed the trade gap. Unlike some neighbors, our shilling hasn’t seen wild swings – inflation is tame at ~3% and the currency only weakens gradually. For everyday Tanzanians, however, “stable” doesn’t mean easy. Half of us are under 18, and millions of young Tanzanians enter the job market each year with hustle and hope. Formal jobs are scarce, and 43% live in poverty on under $2.15 a day. In Dar es Salaam’s Kariakoo market or a village in Mtwara, people transact mostly in cash or local mobile credits. When fuel or fertilizer is imported, even a slow shilling slide makes life pricier – and families feel it. The government has kept macro indicators respectable, but on the ground the economy runs on ugali and grit: small traders, farmers, and boda-boda riders stretching every shilling.
One thing we do have is a vibrant mobile money culture. While bank branches might be distant, mobile agents are everywhere, from urban street corners to rural dukas. By 2023, Tanzania had over 50 million mobile money accounts (many people have a few each), up from 26 million in 2019 – a staggering spread of phone-based finance. Services like Vodacom’s M-Pesa (launched here in 2008), Airtel Money, Tigo Pesa, and others have made sending or receiving money as easy as a text. This has been a game changer: salaries, crop payments, school fees – all can move through a phone now. It’s not perfect (fees add up, and you still often convert e-money to cash), but for a country where ** ~60% are unbanked**, it’s a lifeline. Our people are comfortable with digital wallets and USSD codes, even if they don’t have formal bank accounts or credit cards. That familiarity is fertile ground for the next leap – could it be crypto? Possibly, but there’s a catch: trust. Tanzanians may embrace tech that clearly solves a problem (mobile money proved itself), but new innovations must overcome skepticism, low digital literacy outside cities, and patchy internet in the hinterlands.
Crypto in Tanzania: unofficial uptake meets official skepticism
On paper, cryptocurrency is “illegal” in Tanzania – the central bank (BoT) insists the shilling is the only legal tender and has warned the public against crypto trading. They put a ban in place in 2019. But (and this is a big but) that hasn’t kept crypto completely out. In 2021, President Samia Suluhu made headlines urging the BoT to “be prepared” for crypto’s inevitability. For a moment, it seemed like we might follow regional leaders. (Kenya next door never banned crypto, and in fact Kenya and Tanzania lead East Africa in crypto adoption by some measures.) Our central bank did study the issue – they’re now focused on a possible digital shilling (CBDC) instead of regulating private crypto. As of 2025, no new law has passed, meaning buying or selling crypto formally is not allowed, and exchanges can’t operate openly.
Yet, walk around the University of Dar es Salaam campus or browse Tanzanian crypto forums, and you’ll see interest bubbling. Some young developers and traders use peer-to-peer platforms (often via VPNs) or informal WhatsApp groups to buy USDT or Bitcoin for savings. There’s a quiet stablecoin economy: a freelancer in Arusha might get paid in USDC by a client abroad, or a Dar es Salaam importer sources Tether through a Telegram contact to pay a Chinese supplier. It’s all under the radar, but it’s happening. The Chainalysis reports lump us into that 43% stablecoin share of African crypto volume. While Nigeria and South Africa dominate the headlines, Tanzanians are cautiously stepping into the crypto world too – just without any acknowledgement from officials.
For now, the official stance remains cautious. The BoT regularly reminds us that unregulated crypto could be a conduit for money laundering or scams, and they’ve doubled down on capital controls (recently restricting businesses from quoting prices in dollars). From the government’s view, the priority is a central bank digital currency that they control, not privately issued coins. So we have a paradox: high grassroots curiosity, low institutional support. This gap leaves ordinary people in a bind – those who do dabble in stablecoins are on their own if something goes wrong. No licenses, no consumer protections; just trust in whoever you’re trading with online.
Problems & pain points
Even with Tanzania’s relative stability, folks here face real financial challenges daily:
Shilling depreciation & import costs: Our shilling slips a bit each year against stronger currencies, which makes fuel, vehicles, and machinery more expensive. Businesses feel the pinch. Stablecoins (digital dollars) could help hedge value, but getting from TZS into USDC and back reliably isn’t straightforward under current rules.
Financial exclusion: Over 60% of Tanzanians have no traditional bank account. They rely on mobile money or cash, which limits access to loans, insurance, or high-yield savings. Rural women selling maize or young grads in the gig economy lack affordable financial tools beyond basic payments.
Costly remittances: Our diaspora sends money home for school fees and medical bills, but via operators that charge 7–10% in fees. In an $100 transfer, a big chunk vanishes – a painful loss for families. There’s demand for cheaper, faster cross-border transfers.
Regulatory uncertainty: Crypto remains in a gray zone (effectively banned). This deters mainstream companies and banks from exploring blockchain solutions. People who might benefit hesitate for fear of breaking the law or having funds frozen. Innovation goes on hold waiting for clearer rules.
Infrastructure & literacy gaps: About 63% of Tanzanians live outside cities, where internet can be slow and smartphones less common. Digital literacy is improving, but many are wary of things like crypto scams or simply don’t know how to securely use a wallet. Tech solutions risk widening inequality if they don’t reach the village level.
In short, value is hard to preserve and move freely for many Tanzanians. The status quo has friction: if you’re a farmer, your earnings are at the mercy of shilling inflation and middlemen fees; if you’re a student, receiving money from your sibling in Europe means waiting days and losing a cut to fees. The question is – can stablecoins help ease these pains without causing new ones?
Use cases: how stablecoins could help Tanzanians
Here’s how dollar-pegged stablecoins (like USDT/USDC) might make a practical difference in Tanzania’s day-to-day life:
Cross-border trade & SMEs: Dar es Salaam is a trading hub on the Indian Ocean. Importers of electronics or auto parts often need USD to pay suppliers in Dubai or Guangzhou. Instead of scrambling for scarce dollar banknotes or paying high Forex spreads, they could use stablecoins to transact instantly. A spare-parts dealer in Kariakoo could convert shillings to USDC via a regulated fintech (if one existed) and pay an overseas partner in minutes – avoiding bank delays and potential TZS depreciation during the transaction.
Remittances to villages: Our migrant workers and diaspora (in Gulf states, Europe, etc.) send money home regularly. Stablecoins offer a way to send $100 as $100, directly to a recipient’s phone wallet, with minimal fees. For instance, using a crypto remittance app, a nurse in London could send USDT that her family in Morogoro instantly swaps to mobile money or cash – saving the ~8% fee on traditional remits. More money arrives in Tanzania’s rural households, boosting their income.
Tourism and travel: Tourism is a top earner here, but if you visit a safari lodge or diving center, you’ll notice many prices are quoted in USD and payments taken in cash or via expensive card machines. Stablecoins could streamline this. Imagine European tourists booking a Serengeti safari and paying in USDC online, which the local tour operator can hold (to hedge against off-season currency drops) or convert to shillings gradually. It reduces reliance on stacks of physical dollars under the mattress or high credit card fees.
Youth freelancers & online business: Our youth are entrepreneurial – some design websites, do online tutoring, or sell crafts on Etsy. Getting paid is the headache (PayPal isn’t fully supported for withdrawals here, and bank wires for $50 gigs don’t make sense). Stablecoins can empower a designer in Dar or a coder in Mwanza to receive payments from abroad in seconds. That money can be spent directly if merchants start accepting digital dollars, or converted to TZS as needed. It gives young talent a borderless way to participate in the global digital economy, insulating them from shilling volatility when saving up.
Savings and inflation hedge: Even with moderate inflation, holding some savings in a strong currency is attractive. Urban middle-class folks could use a trusted app to convert part of their salary to a USD stablecoin as a “rainy day fund.” This is akin to what many already do by buying physical dollars – but far more convenient and earnable (some stablecoins can even earn yield in decentralized finance). Over a few years, that could preserve more value than a zero-interest shilling account, especially if the shilling slowly slides.
Microcommerce & P2P payments: Stablecoins could ride on top of our existing mobile money networks. In the future, I can picture buying maize flour at the local market and paying via a wallet that seamlessly uses USDC but pays the shopkeeper in TZS or vice versa. This dual-currency flexibility would let people store in dollars, spend in shillings – protecting value without losing the ability to transact in the local economy.
Why stablecoins make sense (Tanzanian style)
I don’t imagine stablecoins replacing the Tanzanian shilling – mungu apishie mbali! (God forbid, as we say jokingly) – but they can complement our financial system in a few key ways:
Protecting value: For those big expenses or longer-term goals (buying a plot of land, paying university fees), parking money in a dollar stablecoin could prevent the slow erosion that happens when the shilling softens each year. It’s like a digital dollar mattress with easier access.
Reducing fees and friction: From remittances to tourism, cutting out multiple intermediaries means more shillings stay in Tanzanian pockets. Stablecoins move directly at the speed of the internet. No clearinghouse in New York, no Western Union taking a cut, no waiting 3-5 business days.
Building on mobile money’s rails: We already have nationwide e-money agents and a population comfortable with phone payments. Integrating stablecoins with these systems (with proper regulation) could extend more advanced financial services (like interest-bearing accounts, international transfers, dollar loans) to anyone with a phone. It leverages what we have to offer what we need.
Encouraging innovation: If regulators provide a safe framework, local startups could create crypto-to-shilling exchange platforms, or wallet apps tailored for feature phones in Swahili. That means jobs and tech skills in-country. And competition from crypto-fintech might nudge traditional players (banks, telecoms) to improve services and lower costs.
A word of caution
Of course, it’s not all utopia. Stablecoins are only as good as their reserves and platforms. If an issuer’s dollar reserves aren’t 100%, users could be left holding worthless tokens in a crisis. Tanzanians would need education on picking reputable stablecoins (e.g. those with transparent audits). There’s also the volatility of crypto markets around the stablecoin ecosystem – while USDC itself is stable, using decentralized exchanges or wallets carries some risk of hacks or user error. Regulatory support is crucial: without it, users remain in legal limbo and bad actors can exploit gaps. The last thing we want is a big scam undermining confidence in digital finance – trust is hard won and easily lost, as any villager cheated by a pyramid scheme will tell you. And let’s not forget the basics: internet and electricity. Stablecoins won’t work during network outages or if your phone is out of charge – issues very real when Tanzania’s infrastructure hiccups.
Conclusion
Tanzania’s financial journey has been one of pole pole (slowly, slowly) progress. We avoided the hyperinflations and currency crashes some neighbors faced, but many Tanzanians today still struggle with a lack of access to affordable finance. Our youth are brimming with entrepreneurial energy, our traders are connected to global markets – yet the tools they have (cash, mobile money, informal credit groups) can only take them so far. Stablecoins offer a bridge: linking our mobile money revolution to the wider world of decentralized finance. They could empower a fisher in Zanzibar to save in dollars, help a tech startup in Dar receive funding from abroad, or ensure a mother in Dodoma gets the full value of remittance sent by her son in Diaspora.
For this to happen, both people and policymakers have to play ball. The people are already finding ways – quietly using crypto where it helps them – and I suspect that trend will continue. Our regulators, I hope, will see that kukataa si dawa (simply saying “no” isn’t a solution). With smart, phased integration, Tanzania could embrace stablecoins on our own terms: protecting consumers, preventing abuse, but unleashing new opportunities for the mwananchi (common citizen). From the bustling Dar es Salaam fintech meetups to the remote farms of Tabora, the potential is there. As we’ve seen across this Sub-Saharan Stablecoin Series – from Zimbabwe’s inflation battles to Nigeria’s tech-savvy adoption – Africans find a way to “make a plan” when traditional systems fall short. I’ll be here watching our wamachinga (street vendors), students, and grandmothers alike discover if stablecoins can be part of our plan. Tumeshafika njia panda – twende mbele? (We’ve reached a crossroads – shall we move forward?)