Zanzibar Opens Blockchain Sandbox, a Game-Changer for Startups
The Zanzibar government has launched an open National Blockchain Sandbox that targets stimulating innovation in technology startups. In the sandbox, innovation teams can test their projects on the National Blockchain Network; special consideration goes to proposals with main concepts on financial inclusion, identification, and certification.
According to Kenyan Wall Street, the projects selected into the sandbox will also be trained through training and incubator programs that could catapult them into the global market.
Support for Innovation in Technology
Engagement in the sandbox encompasses more than just a testing ground for new technologies; startups benefit from training sponsored by the government, mentorship programs, and collaborations between experts. Such additional resources, Seif Said, Director General at Zanzibar’s e-Government Authority, informed IDN, are so vital in giving innovators the much-needed capacity to pilot their projects with relevant guidance from industry leaders.
This sandbox was in cooperation with Dubai-based LedgerFi IT and runs on top of the EVM-compatible layer-1 network XDC, adding more robustness to the technical foundation of the chain.
Blockchain Growth Across Tanzania
The move falls under a broader fintech umbrella launched by the Bank of Tanzania in July. New guidelines offer entry requirements, while beneficiaries are also given a nine-month period to test their projects. The latest development places Tanzania as one of the very few African markets with a proper regulatory environment for fintechs. In fact, activity in Tanzania is on the increase, with an estimated 75 fintech startups currently in operation.
In spite of BOT’s earlier warnings against the use of virtual currency, blockchain technology is gaining traction across the country. Mobile money services are widely used, with 72% of Tanzanian adults using these platforms compared to 22% reliant on traditional banking services.
Future of Blockchain in Zanzibar
With Zanzibar leading the charge in blockchain adoption, a lot of people are hopeful that it will finally grow into a major fintech innovation hub. Its focus on financial inclusion is especially relevant since 18.7% of the population of Tanzania remains financially excluded.
As blockchain technology continues to spread across more regions, the role this sandbox will play in shaping the future landscape of technology here will be really important.
