Tanzania’s Zanzibar is reportedly exploring ways to adopt crypto

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Zanzibar, a semi-autonomous area in the United Republic of Tanzania, is reportedly investigating ways to regulate and adopt cryptocurrencies like Bitcoin (BTC).

The government of Zanzibar plans to hold meetings with stakeholders such as banks and ministries to discuss guidelines related to the cryptocurrency industry. Zanzibar’s Minister of State Mudrick Soraga announced the plans to the Tanzanian news agency The Citizen on November 10th.

The move is part of a potential plan to adopt crypto, as Soraga had previously met with local crypto enthusiasts who assured him that Zanzibar should recognize and adopt cryptocurrency as the official transaction method while the total crypto market reaches over $ 3 trillion . “We seek opinions on the matter before deciding whether it is viable or not,” the official reportedly said.

According to The Citizen, there is still much to be done for Zanzibar before the jurisdiction can adopt the cryptocurrency. According to Professor Haji Semboja from the State University of Zanzibar, the local government must therefore develop guidelines through the Bank of Tanzania that explain the goals and advantages of the digital currency.

Tanzania Bankers Association chairman Abdulmajid Nsekela reportedly noted that Zanzibar still has a lot to learn about the growing technology. “We need to start learning lessons from other countries about how this technology works. For cryptocurrencies to be effective, we need cryptocurrency guidelines, ”he said.

The latest news from Zanzibar comes months after Tanzanian President Samia Suluhu Hassan urged the country’s central bank to begin research into cryptocurrencies like Bitcoin in June. The move came shortly after El Salvador passed its Bitcoin law in early June, ultimately making the country the first time to adopt Bitcoin as legal tender in September 2021.

Relative:Zimbabwe could be the next country to adopt Bitcoin as legal tender

According to some industry insiders like Cardano founder Charles Hoskinson, many more countries will eventually follow in El Salvador’s footsteps by making it their national currency or adopting crypto for transactions like central bank settlements. Although Hoskinson did not elaborate on which countries are likely to be the first to follow El Salvador, African countries could apparently argue that the African crypto market has grown over 1,200% in one year.

In early November, Hoskinson’s Input Output Hong Kong (IOHK), the research and development arm behind Cardano (ADA), reportedly held secret meetings with some officials in Zanzibar. As previously reported, Africa has been one of the IOHK’s key strategic plans over the years. The organization launched a number of initiatives in several African legal systems.