As more African countries continue to seek crypto exposure, the semi-autonomous territory of Zanzibar in Tanzania is reportedly exploring ways to regulate and adopt cryptocurrencies like Bitcoin (BTC) within its borders.
According to a local media outlet, the Minister of State Mudrick Soraga revealed last week that the Zanzibar government is planning to liaise with stakeholders like banks and ministries, to address policies related to the digital currency industry. He stated that “we are seeking views on the matter before deciding whether it is viable or not.”
Soraga had previously met with local crypto fanatics who suggested that Zanzibar should acknowledge and adopt cryptocurrency as an official transaction method, as news of the total crypto market hitting over $3 trillion emanated.
However, Zanzibar still has a lot of underground work to do before it would be able to adopt cryptocurrency. According to Professor Haji Semboja of the State University of Zanzibar, the local government will have to propagate policies that emphasize the purpose and benefits of the digital currency through the Bank of Tanzania.
Also speaking on the subject, the chairman of the Tanzania Bankers Association, Abdulmajid Nsekela opined that Zanzibar still has a lot to learn about the rapidly growing technology, stating that “we need to start drawing lessons from other countries on how this technology works. For cryptocurrency to be effective, we will need policies for cryptocurrency.”
The news is surfacing months after Tanzanian President Samia Suluhu Hassan compelled the country’s central bank to begin exploring digital currencies like Bitcoin back in June.
Meanwhile, Cardano founder Charles Hoskinson believes that several countries will soon adopt crypto for transactions like central bank settlements, or even tow the path of El Salvador who became the first country to adopt Bitcoin as legal tender. His case was backed by figures which indicate that the African crypto market has surged by over 1,200% in the space of one year.
In other news, Hoskinson’s Input Output Hong Kong (IOHK), which is the research and development arm of Cardano, held talks with some Zanzibar officials behind closed doors in early November.
Africa has been one of IOHK’s hotspots over the years. The organization has launched a number of initiatives in different African countries and is looking to expand its reach within the continent.