Tanzania Ranks 8th in Africa for Crypto Adoption Despite Restrictive Laws

Tanzania has ranked 8th in Africa as the highest adopter of crypto-assets on the continent, according to the Organization for Economic Co-operation and Development (OECD)’s Africa Capital Markets Report 2026. This ranking is notable given that Tanzania maintains a restrictive legal position and has not established a dedicated licensing framework for cryptocurrency exchanges, custodians, brokers, or stablecoin providers. The report was published on November 6, 2026, and highlighted in regional reporting on November 14.

The OECD report reveals a growing difference between actual market behavior and Tanzania’s formal regulatory position. Individuals and businesses are accessing digital assets even as the Bank of Tanzania continues to state that cryptocurrencies are not legal tender and are not authorised substitutes for the Tanzanian shilling. Kenya placed third on the continent, while Rwanda occupied ninth position. Nigeria recorded the highest crypto-asset penetration, followed by Morocco, Kenya, Egypt, and South Africa.

The OECD ranking measures penetration, but does not establish how many Tanzanians own crypto-assets or the total value of the country’s digital-asset market. However, it demonstrates that restrictive rules have not eliminated demand. Crypto adoption across sub-Saharan Africa has more than doubled between 2021 and 2025, according to data cited by the OECD. The organisation identifies currency volatility, limited access to traditional financial services, foreign-exchange constraints, and the cost of correspondent banking as important drivers of demand.

These factors are relevant to East African traders, importers, exporters, technology companies, freelancers, and households receiving money from relatives abroad. A conventional international payment can pass through several banks before reaching its recipient, imposing processing charges, foreign-exchange spreads, and compliance requirements. Digital assets appeal to some users because they can be transferred directly across borders without relying on the full chain of conventional correspondent banks.

The stablecoin case is strongest in cross-border settlement. Stablecoins are digital tokens designed to track the value of another asset, most commonly the US dollar. Their relatively stable value makes them potentially more useful for payments than cryptocurrencies whose prices can rise or fall sharply within hours. The OECD says the average cost of sending remittances to sub-Saharan Africa stood at 6.4 per cent in 2025. Under appropriate conditions, stablecoin-based transfers could provide a faster and less expensive alternative.

However, stablecoins also introduce counterparty risk. Their value depends on the assets and reserves held by private issuers. A token marketed as being worth one US dollar can lose that value if investors doubt the existence, accessibility, or quality of the reserves supporting it. Businesses must assess not only transaction speed and cost but also the legal status of the token, the jurisdiction of the issuer, custody arrangements, redemption terms, and the reliability of the platform through which it is purchased.

Most stablecoin activity is still connected to trading, with approximately 89 per cent of identified stablecoin activity by value in 2024 connected to crypto trading. Payments accounted for only about 2 per cent. The scale of crypto-linked business lending remains unclear, with Bitcoin-linked financing products appearing in Tanzania, Kenya, Uganda, and Nigeria through arrangements connected to conventional bank accounts. However, the report does not quantify the value of this lending or the number of participating businesses.

Key points

• Tanzania ranks 8th in Africa for crypto adoption despite a restrictive legal position.
• Crypto adoption across sub-Saharan Africa has more than doubled between 2021 and 2025.
• Stablecoins have potential for cross-border settlement, but introduce counterparty risk.