A government minister stated that Zanzibar is keen to solicit opinions from stakeholders on the feasibility of adopting digital currencies before making a final decision.

The importance of obtaining stakeholder opinions

In his speech interview In speaking with citizens, Secretary of State Mudric Soraga revealed that his government plans to meet with stakeholders in the third week of November. Kongjia also explained why such a meeting is needed. He said:

We are seeking advice on this matter before deciding whether it is feasible. Without the opinions of stakeholders (including banks, the Ministry of Finance and the Ministry of Foreign Affairs), such a decision cannot be made.

According to The Citizen report, Soraga has met with Hypertech representative Joe Chuene, and they discussed how the island nation can best adopt cryptocurrency.

The report also quoted Haji Semboja, a professor of economics at Zanzibar State University, who agreed with the government’s decision to involve stakeholders first. However, Semboja warned that because finances are an alliance issue, the Zanzibar government is obliged to contact the Tanzanian government through the Bank of Tanzania.

The report explains that through this arrangement, the two governments will formulate policies to explain the goals, operation methods and benefits of digital currencies.

Definition of cryptocurrency key

At the same time, Sandra Chogo, a cryptocurrency expert and author of the book “Jielimishe Kuhusu Blockchain”, was cited in the report, emphasizing the importance of first defining or clarifying the status of cryptocurrencies. Only by doing so can the government formulate regulations and which agency should regulate cryptocurrencies.

Although many experts cited in the report seem to support the Zanzibar government’s tilt towards cryptocurrency, an economist who asked not to be named took a different view. According to the economist, if cryptocurrency is to become an efficient and effective medium of exchange, it needs to be accepted by global central banks.

The economist explained: “Global currencies are stable because they are supported by the central bank’s strong monetary policy.”

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