The government of Zanzibar has unveiled a new sandbox initiative aimed at fostering blockchain startups, allowing them to test their innovative products and services before making them publicly available. This move aligns with a broader trend in the region, as the Vietnamese government also implements a national blockchain strategy with aspirations of becoming Asia’s leading blockchain hub.
Zanzibar’s sandbox is designed to stimulate local innovation and attract talent from neighboring regions. The government is inviting all startups focused on blockchain and emerging technologies like AI to participate, but it will prioritize projects that address significant challenges faced by the island, such as financial inclusion, identity verification, and certificate issuance.
Said Seif Said, head of the e-Government Authority of Zanzibar, emphasized the initiative’s goal: “We aim to create a supportive environment for the advancement of groundbreaking technologies. Innovators will have the chance to undertake pilot projects, collaborate with specialists, and receive mentorship from industry leaders, which is crucial for their development.”
Zanzibar, an autonomous archipelago off the eastern coast of Africa, has a population of over 800,000. While it maintains its own government, it is still under the sovereignty of Tanzania. The Tanzanian government has been actively promoting blockchain technology adoption in recent years, partnering with the African Blockchain Association to enhance public understanding of the technology.
Sandbox initiatives have become vital for the advancement of blockchain applications, offering innovators greater flexibility and clearer regulatory guidance as they work with authorities. Recently, the European Blockchain Sandbox Initiative welcomed its second cohort of 41 watchdogs from 22 EU countries. Similarly, Thailand’s Securities and Exchange Commission launched a sandbox for the digital asset sector, while Hong Kong’s central bank included several major companies in its own sandbox initiative.
Vietnam’s Ambitious Blockchain Strategy
In another development, Vietnam has emerged as a significant player in the digital assets landscape, consistently ranking in the top three for adoption on the Chainalysis Adoption Index since 2021. Contributing factors include a large unbanked population, skepticism toward the national currency, and favorable tax conditions. The government is now looking to leverage this adoption to promote the underlying blockchain technology.
Deputy Prime Minister Ho Duc Phoc has approved a new strategy aimed at facilitating blockchain adoption by 2025 and positioning Vietnam as a blockchain hub by 2030. The initiative, led by the Ministry of Information and Communications through the National Electronic Authentication Center (NEAC), is structured around six main pillars, including the enhancement of digital infrastructure and the establishment of mechanisms for growth control.
Key action areas of the strategy involve providing legal clarity for the sector, producing skilled developers, and investing in research and development (R&D). To support R&D, the government plans to promote blockchain research within national innovation centers and establish ten additional training facilities focused on this technology. Additionally, universities and research institutions will incorporate blockchain into their curricula. Earlier this year, civil organizations in Vietnam initiated the Vietnam Academy of Blockchain and AI Innovation to advance these technologies.
The strategy designates specific responsibilities to various government entities and industry groups, including NEAC and the Vietnam Blockchain Association (VBA). To Thi Thu Huong, director of NEAC, stated, “This strategy will place Vietnam among the leading countries in blockchain application and research within the region, ensuring we effectively master and utilize blockchain across all sectors of society and the economy, ultimately contributing to a stable and prosperous digital nation.”
The VBA has been appointed as the sole private sector organization to play a role in executing the strategy, with vice president Phan Duc Trung emphasizing the association’s commitment to fostering community development through research and practical applications of blockchain technology.
A robust legal framework for blockchain and digital assets is also essential for the success of this strategy. Despite its leadership in the ASEAN region regarding digital assets, Vietnam currently lacks a comprehensive regulatory framework, which has hampered the technology’s adoption by mainstream organizations and led local startups to establish their operations in other countries.