Zanzibar introduces blockchain sandbox for startups

Zanzibar, the semi-autonomous region of Tanzania, has created a blockchain sandbox program. It is asking tech startups in the region to come build technological solutions on its national blockchain network.

The details 

• According to reports, the program, dubbed the National Blockchain Sandbox, is designed by decentralized communications service provider, LedgerFi IT Solutions and powered by the XinFin XDC Network. 
• The Zanzibari government announced that the program is open to all startups. 
• However, priority will be given to companies that provide blockchain-based solutions for financial inclusion, identity verification, and certification issuance. 
• Participants who create projects deemed impactful by the government will receive training and join incubator programs to build their technical skills. 
• The director-general of the e-Government Authority of Zanzibar, Said Seif Said, explained that the island country wants to collaborate with companies that can help it achieve its digitization goals. 

Key quote 

• Seif said: 

“The primary objective is to create a conducive environment for the development of cutting-edge technologies including Blockchain, AI, and other emerging technologies.” 

• He added: 

“Innovators will have the opportunities to work on pilot projects, collaborate with experts, and receive mentorship from industry leaders, which is very critical.” 

Zoom out 

• A blockchain sandbox is an isolated but fully functional testing environment where blockchain-based software, applications, and programs can be tested before they are launched. 
• Typically, governments utilize sandbox programs to bring regulators and ecosystem players together to better understand the space, mostly towards regulation. 
• In recent years, Zanzibar has looked to diversify from a tourism-based economy to other pursuits, including positioning itself as an attractive destination for technological innovation. 
• It established a cyber city and digital free zone, all aimed at driving technological innovation by supporting local startups and attracting global tech firms.