Can and should Africa develop Its own Cryptocurrency?

What if Africa developed its own Unilateral Digital currency?

For reference sake, let us call it the the AfroQoin.

  • Now it is important that I say this right at the very beginning of this read; At the time that I am writing this article, my research tells me that there already is a Digital token termed the Afrokoin, and by their definition (They being the people that created it, and its not for me to mention who) AfroKoin · July 21, 2020 ·. Based on the Bitcoin blockchain, this new cryptocurrency will be used to benefit an economical reprise for Africa and its people.

So imagine this for a second or two, African heads of state come together in agreement to have 1 solid digital currency that is solely backed by Africa’s resources. Pretty much like how the US dollar is backed up by say for arguments sake: Oil. Now you and I know that not much of the US’s oil is from the US, at least not originally, but the US Dollar is among the top 10 currencies in the world. In addition to that, It is also the world’s main reserve currency and is used by most central banks and commercial banks Worldwide. Because of its widespread adoption, the US dollar also accounts for around 88.3% of daily trades in the foreign exchange market.

Now at this stage of this article of you are wondering why are we even comparing Fiat currency to “future” cryptocurrency, I’d say you have the right thought process and I will show you the link up if you carry on reading!

So why opt for a digital currency instead of the normal Fiat currency?

All 54 countries in Africa are currently using Fiat currency as their authorized medium of exchange. None of those 54 countries have currencies listed among the worlds top 10 currencies. Why, When most if not all of the currencies in that top 10 list have a natural resource or two that backs them? Yet Africa is the home to most of the worlds most sort after resources, yes including oil, gold and diamonds. Of course gold and diamonds are just precious minerals, but yes they affect trade balances with other none African countries by a large scale, and for a long time the US Dollar was pegged on the gold standard and it did very well. We have loads of gold in Africa. Most African currencies were pegged to the US dollar right from their inception, i.e. the South African Rand was 1: 1.50. but now the Dollar is far more superior than the Rand.

Should not African currencies be the ones that are in the top 10 of the worlds most powerful currencies? Should not then an African currency be the one that dictates the value of other countries world wide when they’re pegged against it?

Now here is where it all gets Dark.

During the time of researching on this article, A certain European country was the number 1 seller of gold, yet It does not have a single quarry site that mines the precious mineral.

To be continued…

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