"Act with extreme caution when trading in cryptocurrencies" cautions the Central Bank of Tanzania

The Bank of Tanzania (BoT) has warned the public to act with extreme caution when trading in cryptocurrencies.

The central bank is among other East African regulators that have cautioned citizens against the lure of digital currencies, which they say have no legal backing.

The rise of prices of cryptocurrencies prices, especially Bitcoin --the most popular digital currency globally-- has made them appealing.

“BoT considers the recent surge in the prices of cryptocurrencies to be driven by speculation. The risk of a sharp reduction in prices is high. Investors in cryptocurrencies should be aware that they run the risk of losing all their capital,” said Abdul Dolla, BoT’s Assistant Manager, Safe Custody Centre.

While Tanzania has not officially banned Bitcoin, the central bank does regulate cryptocurrency transactions.

Image source: express.co.uk