Experts on the African economy have stated that a common cryptocurrency followed by an integrated capital market would be needed to improve trade and facilitate growth on the continent post the Covid-19 crisis. The African Development Bank Group (ADBG) confirmed this in a press statement.
Professor of Finance and CEO of the West Africa Rating Agency, Anouar Hassoune, made a statement arguing that the cost of doing business could be reduced by having a common cryptocurrency.
He explained: “We have the expertise to adopt a cryptocurrency at the continental level that will be acceptable to each member state. It’s not an issue of technology but a matter of governance”
He also suggested that such crypto could serve as an alternative to some of the continent’s endowments, like gold and other commodities.
Head of the Economic and Financial Transition Department at Agence Française de Développement, Emmanuelle Riedel Drouin, is also quoted in the statement, supportive of the idea, but cautioned that certain conditions need to be met before such common crypto is launched.
She said: “Let’s not forget that the digital infrastructure needs a lot of work. The payment system interoperability needs to be worked on in collaboration with the financial institutions to digitalize delivery and payment channels.”
Drouin also added it is still important for economies to lessen dependence on them by diversifying funding sources.
Many African countries have opposed privately owned cryptocurrencies, however, some are interested in developing their own digital currencies.
One of these countries is Nigeria, which has already launched its digital currency while Ghana is also looking to do the same.
Experts fear the creation of different digital currencies will diminish the possibility of Africa having a common cryptocurrency objective.
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