Zanzibar government plans to embrace cryptocurrency

Zanzibar studies the possibility of adopting cryptocurrencies

Zanzibar, a Tanzanian archipelago located off the coast of East Africa, is actively considering adopting cryptocurrencies. Zanzibar Economy Minister Mudrick Soraga says the government is currently seeking advice from many industry players and some financial institutions, reports Tanzanian news agency The Citizen.

“We are seeking views on the issue before deciding whether it is viable or not. You cannot take such a decision without obtaining the opinion of stakeholders, including banks and ministries of finance and foreign affairs, ”explains Mudrick Soraga.

Obviously, the project is actively discussed by members of the Tanzanian government. As part of his consultations, the Minister of the Economy recently spoke with Joe Chuene, a representative of the firm Hypertech. The tech group’s representative made no secret of his enthusiasm for the adoption of digital currencies in Zanzibar.

“The high volume of transactions of the dominant cryptocurrency has demonstrated the effectiveness of the asset. It is high time that the revolutionary government of Zanzibar adopted it, ”says Joe Chuene.

Same story with Haji Semboja, professor of economics at Zanzibar State University. Asked about the issue by the government, the economist felt that the adoption of cryptocurrencies would be a good thing for the Tanzanian archipelago.

To justify his position, he explains that Zanzibar’s economy is predominantly service-based. The adoption of cryptocurrencies should therefore benefit the many tertiary sector companies established in the territory. Mudrick Soraga also gathered the opinion of Abdulmajid Nsekela, president of the Tanzania Bankers Association.

“We need to start learning from other countries about how this technology works. For cryptocurrency to be effective, we will need cryptocurrency policies, ”said Abdulmajid Nsekela.

Unsurprisingly, the country’s banking institutions are campaigning for the adoption of a regulatory framework that will regulate digital currencies. With that in mind, Samia Suluhu Hassan, the recently elected President of the United Republic of Tanzania, has asked the nation’s central bank to pave the way for cryptoassets. According to the leader, cryptocurrency represents the future of finance. The president’s exhortation came shortly after the announcement of Bitcoin’s adoption as legal tender in El Salvador.

“I know that not all countries, including Tanzania, have accepted or started to follow this direction. However, I ask the Central Bank to start working on these developments. The Central Bank must be ready for change and not be surprised, ”said Samia Suluhu Hassan last June.

👉 Also read: Use of Binance explodes in Africa

African countries turn to cryptocurrencies

Mirroring Zanzibar, many countries on the African continent are turning to cryptocurrencies. This is particularly the case of Zimbabwe. The government of Zimbabwe is currently busy evaluating the pros and cons of using cryptocurrency in its territory. Like Zanzibar, this southern African country has spoken to several players in the crypto-asset sector.

Same story in South America. Inspired by the example of El Salvador, several nations are taking a keen interest in the cryptocurrency sector. Take the example of Panama, which could recognize cryptos as a means of payment, or Brazil, where a member of Parliament wants to allow the payment of salaries in digital currencies.

Cryptocurrencies are particularly popular in Africa. According to a report by Chainalysis, the continent’s crypto markets have indeed grown by +1 200% since last year. This increase is mainly due to the explosion of peer-to-peer (P2P) transfers.

For the African population, Bitcoin (BTC) and cryptocurrencies represent a lifeline against the inflation of fiat currencies. In addition, it should be remembered that Africa’s average banking rate does not exceed 15.7%, despite a sharp increase over the past 15 years. In some countries, such as Mauritania, less than 6% of the population has a bank account.

👉 On the same subject – The creator of Cardano ensures that other countries will imitate El Salvador and adopt Bitcoin (BTC)

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About the author: Florian Bayard

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