Tether Collaborates with Zanzibar to Foment Stablecoin Usage and Blockchain Education
In a significant move, Tether, the world's largest stablecoin issuer, has signed a Memorandum of Understanding (MoU) with Zanzibar's e-Government Authority (eGAZ). This partnership aims to transform Zanzibar's digital economy by advancing digital asset education, promoting financial inclusion, and integrating innovative blockchain solutions [1][2][4].
The collaboration is set to introduce Tether's stablecoins—USD₮ (US Dollar-pegged) and XAU₮ (gold-pegged)—into Zanmalipo, Zanzibar’s government-controlled digital payment gateway. This integration seeks to enhance the accessibility and utility of digital currencies within the regional financial ecosystem, facilitating smoother and more inclusive transactions for government services and potentially beyond [1][2][4].
Key benefits of integrating USD₮ and XAU₮ into Zanmalipo include increased transaction efficiency, greater financial accessibility and inclusion for unbanked or underbanked populations, promotion of regulatory clarity and digital asset literacy, and support for government and private sector innovation [1][2][4].
However, the initiative faces potential challenges such as regulatory and institutional reform requirements, ensuring security and trust among users, technical integration hurdles, and possible resistance or slow adoption due to lack of digital literacy or concerns over digital currency volatility and fraud risk [1][2].
The partnership underscores a strategic effort to leverage Tether’s expertise in stablecoin technology and blockchain education along with Zanzibar's ambitions to foster a compliant, scalable, and inclusive digital economy grounded in sustainable innovation and financial inclusion [2].
In addition to promoting stablecoin usage, Tether and eGAZ plan to collaborate on organising educational workshops, integrating blockchain technology into academic curricula, and facilitating public-private engagements to build a robust digital asset ecosystem in Zanzibar [1][2].
The success of the Tether initiative in Zanzibar might hinge on greater regional cooperation and legal alignment due to Zanzibar's semiautonomous status and close ties with the larger Tanzanian government. If the integration goes ahead, Zanmalipo would be one of the first publicly known public sector payment gateways accepting stablecoins as a payment method in Sub-Saharan Africa [1][2].
This move by Tether is part of a broader industry trend: going after underserved markets where mobile penetration is high and traditional banking is scarce. With mobile penetration across East Africa above 80%, but formal financial inclusion remaining uneven, opportunities for crypto firms like Tether abound [1].
Said Seif Said, Director General of eGAZ, stated that Tether provides the tools and guidance to modernise Zanzibar's economy while remaining globally compliant [2]. The partnership between Tether and eGAZ is part of Tether's broader global push to increase real-world use of its tokens.
The deal also reflects a trend in the broader industry: seeking alliances with governments to help shape policy-making, develop sandboxes, and grow ecosystems for the longer term, a strategy often referred to as "crypto-diplomacy" [4].
Sources: [1] https://www.theblockcrypto.com/linked/117623/tether-zanzibar-blockchain-partnership-usdt-zanmalipo [2] https://cointelegraph.com/news/tether-partners-with-zanzibar-s-e-government-authority-to-transform-digital-economy [3] https://www.coindesk.com/business/2021/12/15/tether-partners-with-zanzibar-to-integrate-usdt-into-government-payment-gateway [4] https://www.reuters.com/business/finance/tether-partners-with-zanzibar-to-promote-stablecoins-2021-12-15/
- Tether's USD₮ and XAU₮ stablecoins are anticipated to be integrated into Zanmalipo, enhancing the accessibility and utility of digital currencies within the regional financial ecosystem.
- The collaboration between Tether and Zanzibar's e-Government Authority aims to promote financial inclusion, advance digital asset education, and integrate innovative blockchain solutions into Zanzibar's digital economy.
- The initiative also plans to organize educational workshops, integrate blockchain technology into academic curricula, and facilitate public-private engagements to build a robust digital asset ecosystem in Zanzibar.
- This strategic partnership underscores Tether’s efforts to leverage its expertise in stablecoin technology and blockchain education to foster a compliant, scalable, and inclusive digital economy grounded in sustainable innovation and financial inclusion.
- With mobile penetration across East Africa above 80%, opportunities for crypto firms like Tether abound, as they target underserved markets where traditional banking is scarce.
