Stablecoin is gaining currency in Africa

As more and more African countries express their interest in launching digital currencies backed by central banks, three are considering the adoption of private-based virtual digital assets, which could bring greater currency stability.

Cameroon, the Democratic Republic of Congo (DRC) and Congo Brazzaville have all announced their intention to adopt cryptocurrency and blockchain-based solutions. The move is likely to push millions of unbanked and underbanked populations into their financial system.

The three economies are now set to begin the development of national stablecoins built on The Open Network (TON), a decentralized blockchain originally designed by Telegram.

Stablecoins are defined as digital currencies that are pegged to a “stable” reserve asset, like the U.S. dollar, or gold. They are designed not to change much in value, unlike some cryptocurrencies.

Already the DRC has confirmed its intent to establish a new national stablecoin, built on the TON blockchain, with the network anticipating confirmations for Cameroon and Republic of the Congo, according to The Open Network.

“TON has been engaging with all three countries independently for some time and has taken the lead to deliver cryptocurrency and blockchain solutions for each nation. These countries will each undertake a phased transition to adopting cryptocurrency as a central pillar of their economic structures,” TON said in a statement.

More African countries could soon join the fray as more foreign blockchain and cryptocurrency investors pitch camp on the continent, often using local partnerships to expand their global footprint.

Kenya, ranked fifth in last year’s Global Crypto Adoption Index by Chainalysis, and leading the world in peer-to-peer crypto trade, is experiencing increasing investor activity around this segment- with investors citing the country as a gateway to other African markets.

Crypto asset trading platform LBank last week partnered with…

Read more at mg.co.za

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