The government of Zanzibar wants to seek the opinion of stakeholders on cryptocurrencies – emerging markets

Zanzibar is interested in hearing stakeholders' views on the viability of adopting digital currencies before making a final decision, a government minister said.

The importance of gathering stakeholder views

In his remarks during a interview Speaking to The Citizen, Mudrick Soraga, who is Minister of State, revealed that his government plans to meet with stakeholders in the third week of November. Soraga also explained why such a meeting is necessary. He said:

We seek opinions on this topic before deciding whether it is viable or not. You cannot make such a decision without receiving input from stakeholders, including banks and the finance and foreign ministries.

According to The Citizen's report, Soraga has already met with Joe Chuene, a representative from Hypertech, and discussed how the island nation can best adopt cryptocurrencies.

The report also quotes Haji Semboja, a professor at the economics department of the State University of Zanzibar, who supports the government's decision to engage stakeholders first. Semboja, however, warned that since finance was a Union matter, the Zanzibar government was obliged to engage with the Tanzanian government through the Bank of Tanzania.

Through this agreement, the two governments will develop policies that explain the goals of the digital currency, how it works and its benefits, the report explained.

Cryptocurrency key definition

Meanwhile, Sandra Chogo, a cryptocurrency expert and author of the book titled Jielimishe Kuhusu Blockchain, is quoted in the report highlighting the importance of defining or clarifying the status of cryptocurrencies first. Only once this is done will the government be able to issue regulations and determine which authority should regulate cryptocurrencies.

While many of the experts cited in the report seemed to support the Zanzibar government's inclination towards cryptocurrencies, an unnamed economist had a different opinion. According to this economist, cryptocurrencies must be accepted by central banks worldwide if they are to become an efficient and effective medium of exchange.

“Currencies are stable worldwide because they are supported by central banks through strong monetary policy,” explained the economist.

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