This week, African leaders met in Kigali, the capital of Rwanda, which resulted in the creation of the Continental Free Trade Area (CFTA), which some say could be the largest in the world. The 55 member states of the African Union have a combined gross product of $2.5 trillion.
A free trade area, which also takes into account facilitating travel across the continent, is another point of the African Union's development plan until 2063. This is a big step forward, and it is a step that should be supported.
The problem, however, is that the infrastructure needed to implement the plan has not yet been created. One such infrastructure is the single currency, which the President of the Republic of South Africa, Cyril Ramaphosa, spoke about.
Speaking to the media, he indicated that he fully supports calls for the creation of a single African currency, which, of course, should be digital.
This is an ideal time for the African continent to embrace cryptocurrencies.
The South African Reserve Bank (SARB) has already established a fintech program to assess technological innovation and consider possible regulatory measures. Issues such as clearing and settlements, exchange control, monetary policy, financial stability, and cybersecurity are under consideration. The bank plans to complete operations in the second half of 2018.
Banking entities like SARB have already set up hubs in Singapore and the UK through which fintech companies can check with regulators to test their ideas. The South African bank is working with these companies on an informal basis and is considering launching each project separately.
SARB also plans to launch an experimental project based on distributed ledger technology, called Project Khokha. The project will investigate interbank clearing transactions.
This move will also lay the foundation for Africa's development as an influential player in the cryptocurrency market. When the world decides to create a global currency, Africa will be ready, because it is starting to work now.
Recently, Jack Dorsey, CEO of Twitter and co-founder of cryptocurrency mobile payment company Square, said that the world may be ready to accept Bitcoin as a global currency in the next 10 years.
If a global currency is established in the next 10 years, every country and every continent will need its own infrastructure.. Africa is not ready yet, but it is already moving in the right direction.
The South African fintech community is beginning the process of involving the Reserve Bank in its work to ensure that the results of its work are truly beneficial to the economy.
These efforts will lead to the fact that in 2063 an African will be able to say: - “Afro (presumable name of the currency) is the single currency of the entire continent.”.
According to https://www.iol.co.za
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