Key Takeaways
- Nigerian economist Gospel Obele proposes a unified regulatory framework for Africa
- Obele also noted that Africa needs a digital currency to bypass existing financial obstacles
- African countries increasingly developing national digital currencies
Obele made these comments during an interview with Nigerian news outlet Joy Online.
According to the economist, Africa needs to unite and build a comprehensive legal framework that will enable the success of cryptocurrencies in the region.
He also proposed that cryptocurrencies can help the region solve the problem of a single currency for inter-regional trade.
Obele believes that adopting a single digital currency by African countries will provide more pros than cons.
Africa has struggled in the past 20 years to develop a single currency that would smoothen trades within the region.
The cross-border nature of cryptocurrencies and the low transaction costs make it the perfect vehicle to resolve this ongoing problem.
The African Union, the powerful regional body, has not made any significant statements about cryptocurrencies.
But individual countries have begun exploring digital currencies.
For example, Nigeria, the largest economy in Africa, is set to launch its e-naira digital currency by October 1.
South Africa has also stepped up plans for its digital rand and will conduct further tests in the coming months.
Ghana and Kenya have also started exploring digital currencies to develop new generation payment systems.
Nevertheless, the local crypto communities in the respective countries are not overly excited about the launch of digital currencies.
According to a major stakeholder in Ghana, the digital cedi is just an extension of the fiat currency, and nothing changes the existing financial system.
There are reports that the African Development Bank (AFDB) is contemplating launching a digital currency.
However, it remains to be seen whether the region will be able to leverage the immense potentials of digital currencies.
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