South Africa will in December see the launch of the Afri Union Coin (AUC), a cryptocurrency developed by Africa Master Blockchain Company (AMBC).
This is designed for use by various telecommunication firms and retail outlets across the country. All those who have agreed to accept the AUC are currently modifying and preparing their financial ecosystems.
“Blockchain has taken the world by storm and Africa shouldn’t have to play catch-up,” says AMBC Director George Gordon. “We should be revolutionising our own payment systems and pushing the technologies we are developing within our own borders.”
The future of currency is crypto
Gordon says the future of all currencies is digital and that Africa is positioned to lead the way to mass adoption of cryptocurrencies. “What is needed, is for the industry to lay the groundwork so that people can switch from cash and cards to digital currencies swiftly and easily,” he says.
The objective behind AUC is to become the sole currency in the entire African continent and is said to be the “next step” to an African Continental Free Trade. According to sources working on the project, the coin will be marketed and utilised as an international currency designed to create more business opportunities for the people of Africa.
“If an African business person or entrepreneur opens a store that sells goods from Japan, for example, they can use Afri Union Coin to make international payments more affordably and securely,” explains Gordon.
An AUC for all
“We want Afri Union Coin to be accessible to people who aren’t educated in investment or professionals in the banking or trading sectors,” Gordon adds. “It’s easy to use, so there won’t be a big switch-over. Africans already have a phenomenal cell phone penetration rate, so it would only make sense for people to have a platform that handles their wealth more securely in the digital space instead of carrying around cash and credit cards.”
Gordon believes the AUC will also help improve cross-border payments among African countries. He says his firm is exerting great effort to make the Afri Union Coin as accessible and usable as possible. He also believes it will help address other problems in Africa such as the lack of resources to help small businesses thrive.
“Zimbabwe, for example, has low cash reserves and a cryptocurrency can help government address these issues. For citizens in Zimbabwe, a cryptocurrency will also offer them protection against hyperinflation, volatile local currencies and financial uncertainty, as well as news that the president of Zimbabwe announced his support for cryptocurrencies, which is a positive,” Gordon concludes.
In August, Neil and Tony Ferreira launched the Safcoin, a cryptocurrency focused on the African market. “We predict that once Safcoin is open for trading on the exchange, the increased token volume and spike in demand for Safcoin will have a positive influence on their value,” Ferreira said.