Africa Blockchain University has called on the Africa Union to employ Digital Currency to create growth with the African Continental Free Trade Area (AfCFTA). It noted that it is the best means to maximize growth with intra-African trade.

The call was contained in a report dubbed, the ‘State of Blockchain In Africa Report: 2nd Quarter 2020‘, released earlier this month. The Blockchain policy advocacy and educational institute proposed and highlighted: 

“It is a critical opportunity for improvement and radically needed change to provide an effective monetary platform to deliver growth for the African Continental Free Trade Area (AfCFTA). Intra-African trade can be better facilitated by a unified financial system that leapfrogs fiat currency issues using Digital Currency/Cryptocurrency. 

The report indicated that the entire evolution of Blockchain, DAO, and options to the post-WWII monetary system, didn’t occur overnight. It has been a process that led towards an awakening. 

Though other technologies and concepts such as Adaptive Organisations in the 1990s, eventually developed into Decentralized Autonomous Organizations (DAO), and Agent-Based Systems (ABS) grew into a policy-based actionable data artificial intelligence, the report recognised. However, these are two examples, but there is more.

 According to the report, this evolution has made us realise the importance of decentralisation and Autonomous Governance, which are critical to moving forward. This is because succeeding requires connecting the old world to the new world.

 “It means interfacing with existing systems and evolving associated policies and mechanisms of centralized control, such as the current monetary system. The key factor is that everything is intertwined and interdependent,” the report said.

 Motivations and Realities

Further, the State of Blockchain In Africa Report mentioned how the current monetary system in Africa is causing resentment from the younger generation as it has let them down. It identified the monetary arrangement as a hindrance to opportunities, growth, inclusiveness and sustainability. 

Africa Blockchain University understands that in many instances, it leaves Africans in a situation where basic human needs aren’t being addressed, including healthcare, nutritious food, real practical value, and an economy that evolves to a green environment and reward system for a better future. 

“This is very apparent in Continental Africa for many reasons,” the University communicated. “The current monetary system is in some countries an evolution of colonization, and in other countries, the currency is very volatile with high risks of rapid devaluation.”

QBITtimes checks showed that six out of the top 10 countries with the highest inflation rate in the world were from Africa with Zimbabwe recording the second highest with 676 per cent. The average inflation rate in Sub-Saharan Africa amounted to about 8.45 per cent opposed to the previous year.  

 Current Challenges

 Again, the report established that governments and regulators in Africa are still in discovery mode and regarded with the effect on the existing monetary system. The gap is the ability to implement, and in some cases, the courage of acceptance that one has to break a few eggs to make an omelette. 

Georges Remboulis, Board Member of Africa Blockchain University, and one of the authors of the report in an interview with QBITtimes intimated that effective multi-jurisdiction policies, proof of concept and prototyping are quite slow. Additionally, informal consortiums are working together on the new bandwagon that is trying to address governance and regulations. 

“Continental Africa has the opportunity to address this as more of a new playing field, as Africa is less constrained by the current monetary system compared to developed countries, especially countries or blocks/unions,” Remboulis argued. “It’s essential to keep a visionary outlook on the desired results.” 

The Way Forward

Remboulis said it is necessary to eventually address the inefficiencies or even corruption in existing systems of governance, and in that regard, prepare the leaders of the future with Education and Mentorship.

 “This is what we are working on at the Africa Blockchain University. The report is not exhaustive, and there will be more regular ‘State of Blockchain In Africa Reports’. We will need and continue to seek partners and sponsors to make things happen,” he explained.

Moreover, he announced it was in that direction that the University in collaboration with Paxful and Althash initiated a Free Blockchain 101 Excellence Course for African youth. The course which will run till October 2020 is aiming to train 6500 people. 

Graph Credit: Statista