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The Bank of Tanzania is reportedly planning to roll out its new Tanzania Instant Payment System payment system in February, after trialing it with banks and mobile money operators. The interoperable system allows transfer of payments between different participating digital financial service providers. The system will reduce the need to use cash, and is expected to increase financial inclusion by improving access and usage of financial services in Tanzania.

The Bank of Tanzania  is working toward a "phased, cautious and risk-based" introduction of a central bank digital currency (CBDC). The central bank will "continue to monitor, research and collaborate with stakeholders, including other central banks, in the efforts to arrive at a suitable and appropriate use and technology for issuance of Tanzanian shillings in digital form". It is exploring both retail and wholesale CBDC. https://www.bot.go.tz/Adverts/PressRelease/en/2023011413181519.pdf

The GSMA published an assessment of the negative impact of levies on mobile money transactions in Tanzania introduced in July 2021. This levy, which amounted to up to 5% of transaction value, led to a sharp decline in the volume of transactions. The levy was reduced in September 2021, and then again in July 2022 and September 2022, after which transaction activity has somewhat recovered albeit on a lower growth path. Those in favor of such levies, which have been introduced in other African countries, argue that it creates an important revenue stream for governments in emerging economies and brings otherwise untaxed informal sector economic activity within the scope of taxation. However, it is regressive and impacts the poorest the most. Tanzanians on lower incomes and living in rural areas particularly suffer as mobile money is often the only way to access financial services.

Tigo Tanzania launched a service that allows all Tigo Pesa customers to send and receive cash on their mobile money wallets from M-PESA in Kenya, MTN in Uganda and MTN and Airtel in Rwanda.

Bank of Tanzania Governor Florens Luoga reportedly said that the central bank is edging closer to introducing a CBDC to help counter the rising popularity of cryptocurrencies in the nation. "It's important for us to provide a central bank digital currency as a safe alternative because many people are being affected by cryptocurrency speculators."  The bank can't ignore the technological advancement of money, and it has sent its officials to countries with more experience in CBDCs, including Nigeria, to learn from them.

VODACOM Tanzania in partnership with Amana Bank has launched a new M-Pesa mobile service dubbed "Halal Pesa" to reach out to the Muslim population who are excluded in the current mobile money services.

USSD also has its limitations. The customer experience is not as smooth nor does it offer the same security capabilities as STK or mobile internet. Further, USSD sessions can be dropped, potentially raising costs and harming customer trust. Despite these and other challenges, the majority of leading MFS providers rely on USSD, including many MNOs. Large deployments that rely primarily on USSD include bKash in Bangladesh, WING in Cambodia, EasyPaisa in Pakistan, ZAAD in Somaliland, M-PESA and Tigo in Tanzania, and EcoCash in Zimbabwe.

Governor Florens Luoga has reportedly revealed that the Bank of Tanzania has begun CBDC launch preparations, at the central bank-organized 20th Conference of Financial Institutions (COFI). As part of preparations the Bank is strengthening the capacity of its officials on digital currencies and expanding research.

The IMF published a blog on African countries' approaches to regulating crypto-assets, finding that only one-quarter of countries in sub-Saharan Africa formally regulate crypto. However, two-thirds have implemented some restrictions and six countries-Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania, and the Republic of Congo-have banned crypto. Zimbabwe has ordered all banks to stop processing transactions and Liberia directed a local crypto startup to cease operations (implicit bans). The blog also warned that public finances could be put at risk if crypto-assets are adopted as legal tender, as the Central African Republic recently did.

The East African Community (EAC) Draft Cross-Border Payment System Masterplan was validated by its eight member countries (Burundi, the Democratic Republic of Congo, Kenya, Rwanda, Somalia, South Sudan, Uganda and Tanzania). The Masterplan aims to enhance the speed, security, affordability and integration of payment systems across the region. It tackles key obstacles such as fragmented regulations, high transaction costs, and limited interoperability by outlining twenty targeted initiatives. These include a regional instant retail payment switch, and exploring using central bank digital currencies (CBDCs) for regional transactions.