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The Buildup of Cryptocurrency and Agitation for African Digital Currency

The Buildup of Cryptocurrency and Agitation for African Digital Currency

Neuner, a staunch follower and expert of Bitcoin tweeted on important information about the impact of technology changes that are currently taking place. He highlighted a Bitcoin exchanger that is two years old after its launch and does not have a physical branch. The technology has so far hired 300 employees generating $200 million benefits in Q1 of 2018. This is much far compared to a known bank in German. The bank is currently 50 years of age with an employment base of 99,000 employees. It generated $146 million within the same period. This proves the huge disruption that is facing the banking or financial system.

Furthermore, the market value of Bitcoin went up within the same period. This forced it to bridge the capitalization of the market of the cryptocurrency products to almost $500 billion+36% more in April this year. Many crypto followers were happy with the development. Many of them see cryptocurrency as a store of value (SoV) that is tradable on shares markets or as an asset. Most people are optimistic that it might be the next currency whose worth is compared to gold. A huge number of followers wish that it might replace the dollar and weaken the strength of the US Federal Reserve on the world financial system.

In the same period, American Security Exchange SEC’s chairman was against the possibilities of Bitcoin becoming a great asset. This is due to the exchange regulations and transactions. Many big financial experts including the Nobel economists and rich individuals making it to the top of Forbes magazine, IT gurus, big bank CEO, and Central Banks have given mixed opinions dismissing the impact of the Bitcoin in the financial sector. There have been many reports of money laundering schemes, elaborated scams, and illicit trade product trade over irresponsible internet challenging national prosecutions on policies and Interpol. They did not help in the cases.

There were rumors that security agencies were fighting without the knowledge of the public. For instance, the story about Russia FSB moves against the social media CIA or Telegram. According to the story, the tracking of any North-Korean participation into Bitcoin trading to avoid sanction might have been backed by spy information. Most shocking information is the video that was seen teaching 10 steps to create a privately owned crypto wallet. This was to start carrying out Bitcoin exchange. This requires more intelligence and training matters and also advanced skills in IT. This is the reason why IT experts, young people, and cybersecurity gurus are in a position to understand the new crypto scene and are the main players. Many of them are aiming at using the illegal way to become rich within the shortest time. They have developed a modern central place and are developing artificial networks. This is through the internet giving the Internet of value (IoV) and upper hand over the internet of Things (IoT).

However, the TransformAfrica 2018 conference taking place in Kigali Rwanda is bringing the issue closer to the Africans. The event will be working on the theme ‘Blockchain BC applications and cryptocurrencies.’ Another conference similar to that is run by Africablockchain.org will take place in Kampala Uganda on June this year. However, the cryptocurrency trade is already taking place in many African countries. There is a number of volumes or sophistication be it in Kenya, Zimbabwe, SA. Egypt or Nigeria. Nairobi gave a platform where NuruCoin which is an initial coin offering (ICO) was announced. The same initiatives (Kora) are coming up in West Africa around the CFA currency. Kenyan innovators and their partners are relying on M-Pesa to track the trade of BitPesa in Europe. This is after purchasing a Spanish exchange.

Bitcoin competitors like Zcash and LiteCoin have been working hard to solve main challenges. This is especially the conversion of Bitcoin to fiat money and the reverse. They also work on speeding up the acceptance of merchants or businesses. This is for each transaction that shows the readiness of the whole ecosystem. This shows that there is a lot of work done or already done. At times there is much transparency required and brought in by crypto’ branded carat and cut issues in Israel for the excessive controlled trade of diamond where trust is important. Rwanda has given the issue a firm stand. BNR issued a warning to the public on the stated risks perceived or real ones. It is clear that the country will not allow stockbrokers or local banks to take part in crypto transactions very soon. Small economy and the commitment to the running of monetary policies and macroeconomic agreed upon by the IMF under PSI will be the order of the day for a while.

Rwanda should get ready to embrace the revolution of Bitcoin due to its IT hub and innovation nature. World players Microsoft, WiseKey or IBM are coming up with modern applications for developers. A company with great apps on digital money transfer has shown a proof of concept (PoC) to the ICT Ministry. The ministry is waiting for the complete product. The question is for how long will Rwanda take to accept the cryptocurrency while it is seen as the home of IT gurus and is almost putting up a modern financial center in Kigali? Dubai and Singapore have developed a blockchain. This has helped them in welcoming strategies to place them into the next development plans on Global Trade and Supply Chain. The matter is taking the center stage at the EU parliament and European Central Bank (ECB). EU parliament has opened discussions to hear about the two sides of the story which they can get and they are not in a hurry. Furthermore, the matter is already listed as an agenda on the coming G20. It will be discussed at the level of the mistrial that will take place in Argentina. The outcome of that summit can be the turning point. It will also have a long-lasting impact on the banking or financial services. The president of Rwanda who represents the AU has also received invitations to attend the summit. Therefore he cannot take the matter lightly and requires to have a strong and leading stand.

In the recently concluded business summit panelists requested for an African Digital Currency (ADC) to increase the trade within the borders. Payment facilitation and Bitcoin platforms need to come together to instill the needed trust in the continental intra-trade, partners identification, e-commerce and supply chains. A number of researchers at the doctoral level and MBA have agreed that the move is needed and can is attainable. The last researcher to advocate for an ADC threw his weight on gold reserves brought by every central bank in process and proportion to be managed by their continental team. The development will lead to the creation of a stable currency for global trade. It will help solve the question of impact on macroeconomic, liquidity management, monetary policies, and inflation control. Furthermore, it will lead to a stable financial system and worldwide trade.

Countries like Estonia, Canada, Russia, South Korea China and Estonia have national digital currency under final or consideration stage of development. Israel based company developed the crypto Rubio fixed on Diamond and precious value of the metal. This shows how the world is working on having a common currency. This is mainly to show the balance of strong dependent on technology and economic power.

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Written by Denis Opudo

Am an engineer who's a tech blogger, hit me up on dennis@techinafrica.com and we base our discussion on technology in Africa and the rest of the world.
Denis the Tech guru

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