Africa is the poorest populated continent in the world as of 2018, and foreign direct investments have been of primary importance to the African population for many decades now. Because of the high level of corruption, especially in Northern Africa, the idea of a domestic cryptocurrency has long been in discussion.
Now, according to media, the plans of launching Africa’s first cryptocurrency are coming closer to reality. The so-called Africa Master Coin is expected to help facilitate more trade and FDI circulation around the continent.
The news comes after President Cyril Ramaphosa announced that he eagerly supports the idea of such a currency. Trapeace Holding said it had already partnered with a Korean company regarded as leaders in blockchain development, to create the Africa Blockchain Foundation which would develop and launch Africa Master Coin.
The currency is expected to be launched later this year.
The Master Coin will essentially help the African economy move forward towards easier trade and “communication” within the continent. Since the economy is so fragmented in the different parts of continent, Master Coin will enable more investment and more equal opportunities for all.
According to Luyolo Mkentane from Business Report, the Director of Trapeace Holdings, George Gordon, has expressed his positive expectations about the future of Master Coin on the African Economy.
“Many African companies operate across borders within the continent and paying suppliers is known to be a cumbersome process. A uniquely African cryptocurrency will greatly improve cross-border payments between African countries. Our goal is to make the Africa Master Coin as accessible and usable as possible.”
In addition, the Coin can help the whole African society to be more united when it comes to unstable cash flows, reserves and financial insecurity as a whole.
One problem that the Coin may create is the fact that while most alt coins are traded throughout the world, Master Coin will be used only in Africa. This has already been noted as one of the major issues with the new currency. While blockchain will certainly add benefits to the African economy, the fact that trade and investment can be exchanged only in Africa with this new digital currency may create issues with hyperinflation, since, unlike Bitcoin, Master Coin will not be universal and essentially not “owned” by a particular institution or a government.
There have been many discussions about the effects of blockchain and a native digital currency might have on the oldest continent in the world. However, the whole idea of digital currencies is that they have universal application and the high liquidity that this universality creates can help with hyperinflation and increased investment. With the subtleties in Africa and the complicated economy, Master Coin can work in “both directions” once launched.