Zanzibar’s government is seeking to support blockchain startups and recently launched a sandbox where they can experiment with new products and services before they launch publicly. At the same time, the Vietnamese government has launched a national blockchain strategy with one bold goal: to become Asia’s blockchain hub.
Zanzibar launches blockchain sandbox
Zanzibar has launched a sandbox for blockchain startups to spur 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 utilizing other emerging technologies such as AI. However, it revealed it would prioritize those solving the key challenges affecting the island region, including financial inclusion, certificate issuance, and identity verification.
“The primary objective is to create a conducive environment for the development of cutting-edge technologies, including blockchain, AI, and other emerging technologies. Innovators will have the opportunities to work on pilot projects, collaborate with experts, and receive mentorship from industry leaders, which is very critical,” commented Said Seif Said, who heads the e-Government Authority of Zanzibar, as reported by local outlets.
Zanzibar is a semi-autonomous group of islands off the coast of East Africa. With a population of just over 800,000, it has its own government and president but remains under Tanzania’s sovereignty.
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 the citizens about blockchain.
Sandboxes have become critical in the development of blockchain applications. They allow innovators more latitude as they develop their products and provide more regulatory clarity as they collaborate with authorities.
This month, the European Blockchain Sandbox Initiative welcomed its second cohort, which included 41 watchdogs from 22 EU countries. In August, the Thai 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 into its sandbox.
Vietnam’s ambitious blockchain strategy
In other news, Vietnam has been a hotspot for digital assets over the past five years, ranking in the top three for adoption on the Chainalysis Adoption Index since 2021. A high unbanked population, low faith in the national currency, and zero taxation are among the factors that contribute to this growth. Now, the government wants to channel this adoption to the underlying blockchain technology.
Deputy Prime Minister Ho Duc Phoc signed off on the new strategy, which aims to lay the groundwork for the adoption of blockchain by 2025 and make Vietnam a blockchain hub by 2030. The country’s Ministry of Information and Communications is spearheading the initiative, specifically through the National Electronic Authentication Center (NEAC).
The strategy hinges on six key pillars, including growing the digital infrastructure, establishing growth control mechanisms, and building a sustainable digital economy. It also outlines some key action areas, which include offering legal clarity to the sector, churning out skilled developers, and investing in research and development.
Under R&D, the government will push for blockchain research in the three national innovation centers and build ten more training facilities dedicated to the technology. It will also integrate blockchain into the curriculum of universities, colleges, and research institutions. Earlier this year, civil societies in Vietnam launched the Vietnam Academy of Blockchain and AI Innovation to spur the two transformative technologies.
The strategy assigns specific actions to various government agencies and industry bodies, 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, ensuring that we master and utilize blockchain across all social and economic sectors, contributing to a stable and prosperous digital nation,” commented To 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, says 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 performing the assigned tasks to promote community development in the direction of research, practical application, and maximizing the benefits of blockchain technology as shown in the national strategy.”
Establishing a legal framework for blockchain and digital assets will be just as critical to the success of the strategy. Despite leading ASEAN in digital assets, Vietnam still lacks a comprehensive framework for the sector, hindering the technology’s implementation by mainstream organizations and pushing local startups to set up operations abroad. Coingeek
