African economist says that regulated cryptocurrencies are a reasonable alternative to uniform trading currency - emerging countries Bitcoin News
African economist says that regulated cryptocurrencies are a reasonable alternative to uniform trading currency - emerging countries Bitcoin News
A research and development economist based in Nigeria, Gospel Obele, has called for "a uniform regulatory mechanism for trade in cryptocurrencies". He adds that such a regulation of cryptocurrencies can potentially complement an African digital currency, so this must be taken into account.
cryptocurrencies show the way
crypto has managed to build a number of singular markets when it comes to using digital currencies and cross -border trade, and this is an important philosophy that the [African Continental Free Trade Area] comes. One of the significant problems that the AFCTA represents is an important opportunity for a single currency on the African market. We all know the different stages of development of the financial markets in the respective member states.
Obele admits that the introduction of a uniform digital currency by all African countries seems impossible at short notice and could prove to be “very demanding” over time. In his opinion, however, only such a digital currency is a "reasonable alternative to achieve this synchronization level in order to facilitate trade activities across borders".
crypto remains here
As some African central banks are considering launching their own digital currencies, privately spent cryptocurrencies are already used as a medium of exchange for some cross -border business. In Nigeria, for example, where there is a lack of foreign exchange, cryptocurrencies such as Bitcoin are used as an alternative means of payment. This has helped some import companies to stay afloat.
The increasing use of cryptocurrencies in cross -border payments has meant that some central banks have taken measures that hinder this practice. Obele commented on this and reminded the central banks that "cryptocurrency came to stay". Instead of restricting the use of such digital currencies, the economist wants the central banks to understand the technology that is based on such digital currencies - the blockchain. He explained:
"So we have to return to the basics to do things right to be part of the crypto revolution."
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