Africa is demonstrating a great example of breaking borders through the free trade agreement signed this year. This indicates a growing need for African countries to break borders and trade with each other more than they presently are.
According to the new South African President Cyril Ramaphosa, the next natural step for Africa is creating a single currency.
“We will begin to interface with the idea and notion of a single currency, possibly even a digital currency, and it is possible that a digital currency will precede a real single currency,” he said.
COMESA has also laid out plans to apply blockchain technology for its digital free trade area to improve the time it takes for parties to transact and for documents to be processed.
Using Digital Currencies and Smart Contracts to Break Borders
When you think of blockchain technology, digital currencies are not usually far behind. The modern financial systems have further thickened the jurisdictional borders separating nations but digital currencies are slowly changing this status quo.
Recently, Kenya’s blockchain and AI taskforce recommended the creation of a digital currency, a step that could make a huge impact in the country if adopted. However, the idea of a digital currency could even have a greater impact if it was applied to the entire continent instead.
Currently, someone in Kenya cannot buy a product from a Nigerian merchant directly because of the obvious currency barriers. However, with an African digital currency built on the blockchain, the payment possibilities are endless.