How Tether Is Building an Entire Crypto Economy in East Africa

According to news reports, Tether has signed a new Memorandum of Understanding (MoU) with the Zanzibar e-Government Authority (eGAZ) to boost digital asset adoption and financial literacy in East Africa. This Tether Zanzibar partnership is a push by the stablecoin issuer to reach underserved markets by combining education, innovation, and real-world blockchain applications.

The collaboration, announced in a joint statement, will focus on blockchain education, stablecoin integration and helping Zanzibar develop compliant systems to support the region’s growing digital economy.

Education First: Building Blockchain Literacy from the Ground Up

An important part of the agreement is education. Tether will work with eGAZ and local academic institutions to organize workshops, seminars and public sector events on blockchain, Bitcoin, stablecoins and peer to peer technologies.

The goal, according to Tether CEO Paolo Ardoino, is to shift interest in blockchain from “casual curiosity to structured growth”.

“This MoU with the Zanzibar e-Government Authority reflects our commitment to financial literacy and sustainable blockchain innovation in Africa” Ardoino said.

These programs are not just to raise awareness but to equip stakeholders; from students to government workers, with the tools to engage with blockchain technology meaningfully and responsibly.

USD₮ and XAU₮ May Soon Power Local Transactions

Another part of the Tether Zanzibar partnership is the potential integration of Tether’s stablecoins into Zanmalipo, Zanzibar’s official government payment platform.

Under the agreement; Tether will assess how USD₮ (its dollar pegged token) and XAU₮ (its gold backed token) can improve payment accessibility and financial inclusion across the region.

If approved, these integrations could allow Zanzibar residents to make local payments with digital dollars and digital gold; helping people hedge against inflation, access digital services and engage with global markets more easily.

Catalyzing Legal Reform and Institutional Development

According to Seif Said, Director General of eGAZ, the partnership will also support institutional and legal development. He called the MoU a remarkable moment that aligns Zanzibar with the global movement towards digital asset adoption.

The MoU sets out a framework for legal and regulatory framework, including reforms that will support innovation while being compliant with international standards.

This could be a testing ground for responsible blockchain policy in East Africa, especially as Nigeria and Kenya are exploring their own stablecoin and CBDC frameworks.

Public–Private Engagement and Ecosystem Growth

Beyond government services and education, the Tether Zanzibar partnership includes plans for local entrepreneurship through blockchain-focused events and private-sector forums.

Tether and eGAZ will co-host Public awareness programs; Hackathons and incubators; Training for fintech startups.

This ecosystem-building will stimulate grassroots innovation, giving developers and founders in Zanzibar a way to build real-world solutions on top of stablecoin infrastructure.

Part of Tether’s African Push

This follows other African deals. Tether recently backed Shiga Digital, a fintech company deploying stablecoin tools at scale in Africa. It also has partnerships with over 100,000 cash-to-crypto retail locations across the region.

By combining localized education, payment integration and regulatory cooperation, Tether is embedding USD₮ and XAU₮ into emerging economies, not as speculative tools but as daily-use digital currencies.

Conclusion

The Tether Zanzibar partnership is a practical way blockchain and stablecoins are being introduced to emerging economies. Rather than hype or speculative narratives, Tether is working with governments like Zanzibar’s to build real infrastructure, educational, legal and financial; that supports inclusion and responsible digital growth.

With pilot integration of USD₮ and XAU₮ on the table and education rolling out, Zanzibar could soon be a case study on how stablecoins can complement public sector systems in the Global South.

Overview

Tether has signed an MoU with Zanzibar’s e-Government Authority to expand blockchain education and test stablecoin integration into Zanmalipo, the government’s payment platform. The Tether Zanzibar partnership will support workshops, institutional collaborations and legal reforms to advance digital asset adoption. Tether’s USD₮ and XAU₮ may soon be used in local transactions, increasing financial inclusion and offering alternatives to traditional banking. 

FAQs

What’s the Tether Zanzibar partnership about?

Tether and eGAZ are working together to promote blockchain education and stablecoin integration in public payments.

Will Tether’s stablecoins be used in government systems?

Tether is looking into integrating USD₮ and XAU₮ into Zanmalipo.

What educational components?

Workshops, training programs and academic partnerships for blockchain and digital assets.

Is this part of a bigger plan?

Yes. Tether has an active expansion plan across Africa, education, infrastructure and partnerships.

What’s in it for Zanzibar?

The MoU sets the stage for regulatory progress, digital literacy and financial inclusion through blockchain.

Glossary

USD₮: A U.S. dollar-backed stablecoin issued by Tether, pegged 1:1 to the dollar.

XAU₮: A stablecoin issued by Tether that represents ownership of physical gold, a digital gold alternative.

Zanmalipo: Zanzibar’s government digital payment gateway.

eGAZ: Zanzibar e-Government Authority, responsible for digital transformation of the government.

Financial Inclusion: The effort to provide financial services to individuals and businesses who don’t have access to traditional banking.

Sources

Tether.io

BTC Times

CoinTrust

The Coin Republic