Zanzibar is keen on getting stakeholders’ views on the viability of adopting digital currencies before a final decision is made, a government minister has said.
How important it is to hear the opinions of all stakeholders
MudrickSoraga, the Minister of state, stated that his government will meet with stakeholder in November’s third week. Soraga explained the reasons for such an event. He explained:
To determine whether or not it is possible, we need to hear your views. This decision cannot be made without input from the banks, ministries of Finance and Foreign Affairs and other stakeholders.
According to The Citizen, Soraga had already spoken with Joe Chuene from Hypertech, and they talked about how the island can best adopt crypto currencies.
The report also quotes Haji Semboja, a professor at the State University of Zanzibar’s Economics Department, who endorses the government’s decision to engage stakeholders first. Semboja cautioned that finance is an Union matter and the Zanzibar government is therefore obliged to communicate with Tanzania via the Bank of Tanzania.
According to the report, this agreement allows the two governments to come up with policies which will outline the purposes of the digital currency as well its working principles and benefits.
Key Definition for Cryptocurrencies
Sandra Chogo (a cryptocurrency expert, author, and co-author of Jielimishe Kuhusu Blockchain), is mentioned in the report, stressing the importance to clarify or define the status of crypto currencies first. This is the only way that government can come up with regulation and which agency should regulate cryptocurrency.
While many of the experts quoted in the report appeared to support the Zanzibar government’s tilt towards cryptocurrencies, one unnamed economist had a divergent opinion. If cryptocurrencies are to have any chance of becoming an efficient and effective means to exchange money, they must be globally accepted by all central banks.
“Currencies are stable globally because they are supported by central banks through strong monetary policies,” the economist explained.
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