Zanzibar, a semi-autonomous province in Tanzania’s United Republic, is said to be looking at ways to regulate and implement cryptocurrencies such as Bitcoin (BTC).
Zanzibar’s government intends to convene talks with cryptocurrency sector players, including banks and ministries, to discuss policies. On November 10, Zanzibar’s Minister of State, Mudrick Soraga, told Tanzanian news outlet The Citizen about the intentions.
The move is part of a possible strategy to accept cryptocurrency. Soraga recently met with local crypto fans who promised him that. With the overall crypto market reaching over $3 trillion, Zanzibar should recognise and implement bitcoin as an official payment option. “We’re looking for opinions on the topic before deciding whether it’s feasible or not”, the official remarked.
The Citizen reports that Zanzibar still has a lot of work to do before it can accept cryptocurrencies. According to professor Haji Semboja of the State University of Zanzibar, the local government would be required to develop rules. Which describe the digital currency’s aims and advantages through the Bank of Tanzania.
Abdulmajid Nsekela, head of the Tanzania Bankers Association, said that Zanzibar has a lot to learn about technology. “We need to begin learning about how this technology works from other countries”. We will need laws for bitcoin in order for it to be effective,” he stated.
More governments will follow El Salvador’s lead and accept crypto as their national currency
The recent news from Zanzibar comes months after Tanzanian President Samia Suluhu Hassan ordered the country’s central bank to investigate cryptocurrencies such as Bitcoin in June. El Salvador’s action comes shortly after the government enacted a Bitcoin law in early June. Making it the first country to embrace Bitcoin as legal currency in September 2021.
Some industry experts, such as Cardano founder Charles Hoskinson, believe that many more governments will follow El Salvador’s lead. And accept crypto as their national currency or for transactions such as central bank payments. Hoskinson did not specify which nations are likely to follow El Salvador as the first. However, African countries appear to have a case. Given the African crypto market has increased by over 1,200% in a year.
Hoskinson’s Input Output Hong Kong (IOHK), the Cardano (ADA) research and development branch, allegedly met with certain authorities in Zanzibar in early November. As previously reported, Africa has long been a significant strategic objective for IOHK, with the organisation undertaking a number of programmes across the continent.