Reports said that Zanzibar, a semi-autonomous territory in Tanzania, is exploring ways to regulate and adopt cryptocurrencies like Bitcoin (BTC).
It has been reported that the government of Zanzibar is planning to conduct meetings with stakeholders like banks and ministries to discuss policies related to the cryptocurrency industry.
However, Minister of State Mudrick Soraga announced the plans to Tanzanian news agency The Citizen last week on Wednesday. The move is part of a potential plan to adopt crypto, as Soraga previously met with local crypto enthusiasts who assured him that Zanzibar should recognize and adopt cryptocurrency as an official transaction method amid the total crypto market hitting over $3 trillion.
The official said:
“We are seeking views on the matter before deciding whether it is viable or not.”
The report said that there is much work to be done for Zanzibar before the jurisdiction would be able to adopt cryptocurrency. As such, the local government will have to come up with policies explaining the objectives and benefits of the digital currency through the Bank of Tanzania, according to professor Haji Semboja at the State University of Zanzibar.
Abdulmajid Nsekela, the Chairman of the Tanzania Bankers Association, noted that Zanzibar has a lot to learn about the growing technology.
“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.”
Likewise, this latest news from Zanzibar comes months after Tanzanian President Samia Suluhu Hassan urged the country’s central bank in June to begin exploring cryptocurrencies like Bitcoin.
The move came shortly after El Salvador passed its Bitcoin Law in early June, eventually making the country in September the first to adopt Bitcoin as legal tender.
Thus, according to some industry figures such as Cardano founder Charles Hoskinson, many more countries will eventually follow in the footsteps of El Salvador by making Bitcoin the national currency or adopting crypto for transactions like central bank settlements.