Zanzibar’s government is trying to support blockchain startups and recently launched a sandbox where they can experiment with new products and services before launching them publicly. At the same time, the Vietnamese government has launched a national blockchain strategy with one bold goal: to become the blockchain hub of Asia.
Zanzibar launches blockchain sandbox
Zanzibar has launched a sandbox for blockchain startups to boost innovation from local companies and attract innovators from neighboring countries.
In its announcement, the Zanzibar government welcomed all startups developing solutions on the blockchain and using other emerging technologies such as AI. However, it revealed that it would prioritize resolving key challenges facing the island region, including financial inclusion, certificate issuance and identity verification.
“The primary goal is to create an enabling environment for the development of cutting-edge technologies, including blockchain, AI and other emerging technologies. Innovators will have the opportunity to work on pilot projects, collaborate with experts and receive mentorship from industry leaders, which is very crucial,” said Said Seif Said, head of Zanzibar e-Government Authority, as reported by local media.
Zanzibar is a semi-autonomous archipelago off the coast of East Africa. With just over 800,000 inhabitants, the country has its own government and president, but remains under the sovereignty of Tanzania.
In mainland Tanzania, the government has been pushing for blockchain adoption in recent years. Earlier this year, it partnered with the African Blockchain Association to educate citizens about blockchain.
Sandboxes have become critical in blockchain application development. They give innovators more leeway in developing their products and provide greater regulatory clarity as they work with authorities.
This month, the European Blockchain Sandbox Initiative welcomed its second cohort, consisting of 41 watchdogs from 22 EU countries. In August, Thailand’s SEC launched its sandbox for the digital asset sector, while a month earlier, Hong Kong’s central bank welcomed Standard Chartered (NASDAQ: SCBFF), Animoca Brands, JD.com (NASDAQ: JD) and others to its sandbox.
Vietnam’s ambitious blockchain strategy
In other news, Vietnam has been a digital asset hotspot for the past five years and has been in the top three for adoption on the Chainalysis Adoption Index since 2021. A large unbanked population, low confidence in the national currency and zero taxation are among the factors contributing to this growth. Now the government wants to channel this adoption to the underlying blockchain technology.
Deputy Prime Minister Ho Duc Phoc has signed off on the new strategy, which aims to lay the foundation for blockchain adoption by 2025 and make Vietnam a blockchain hub by 2030. The country’s Ministry of Information and Communications is spearheading the initiative, especially through the National Electronic Authentication Center (NEAC).
The strategy is based on six key pillars, including expanding digital infrastructure, establishing growth control mechanisms and building a sustainable digital economy. It also outlines some key areas for action, including providing legal clarity to the sector, supplying skilled developers and investing in research and development.
As part of R&D, the government will push for blockchain research in the three national innovation centers and build another ten training facilities focused on this technology. It will also integrate blockchain into the curriculum of universities, colleges and research institutions. Earlier this year, civil society organizations in Vietnam launched the Vietnam Academy of Blockchain and AI Innovation to boost the two transformative technologies.
The strategy assigns specific actions to various government agencies and industry associations, including NEAC and the Vietnam Blockchain Association (VBA).
“This strategy will position Vietnam among the top countries in blockchain application and research in the region, and ensure that we master and use blockchain in all social and economic sectors, contributing to a stable and prosperous digital nation” , said Thi Thu Huong, the director of the NEAC.
The VBA was the only private sector organization assigned a role in implementing the new strategy, which the association’s vice-president, Phan Duc Trung, said is in recognition of its continued contributions to the sector.
“VBA is aware of its responsibility towards this very young, but potential industry. We are committed to actively and proactively carrying out the assigned tasks to promote the development of the community towards research, practical application and maximizing the benefits of blockchain technology, as reflected in the National Strategy.”
Establishing a legal framework for blockchain and digital assets will be equally crucial to the success of the strategy. Despite ASEAN being a leader in digital assets, Vietnam still lacks a comprehensive framework for the sector, hindering the implementation of the technology by mainstream organizations and pushing local startups to set up operations abroad.
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