Trapeace Holdings is currently developing a crypto currency that will be for exclusive use in Africa. What makes this crypto currency unique is that tokens will be link to the various’ African countries, making it similar to regular currencies but with myriad benefits for companies, investors and end-users.
Interestingly, this news comes shortly after President Cyril Ramaphosa said that a single African currency is the ‘next step’ to an African Continental Free trade Area, supporting the idea of a digital currency.
The crypto currency, called Africa Master Coin, is set to be launched towards the end of the year. Trapeace Holdings has partnered with a Korean based development team which are leading experts in blockchain platform development as well as one of the leading ICO (Initial Coin Offering) marketing campanies in Singapore called Cornet PTE LTDto create the Africa Blockchain Foundation, which will ultimately develop and launch the Africa Master Coin.
Faster, more efficient trade and investment
George Gordon, Director of Trapeace and board member of African Blockchain Association, says that once launched, the Africa Master Coin will enable more efficient foreign investment from overseas as well as faster and easier trade within Africa.
“Many African companies operate across borders within the continent and paying suppliers is known to be a cumbersome process. A uniquely African crypto-currency will greatly improve cross-border payments between African countries. Our goal is to make the Africa Master Coin as accessible and usable as possible,” says Gordon.
Another way that Africa Master Coin can help address problems in African countries is by creating unique opportunities for countries with low cash reserves.
“Zimbabwe, for example, has low cash reserves and a crypto currency can help government address these issues. For citizens in Zimbabwe, a crypto currency 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 crypto currencies which is a positive,” says Gordon.
Africa Master Coin will be producing tokens that are fixed at a constant value to local currencies. South Africa, for example, would have a local token that is fixed to the Rand. If 10 Africa Master tokens equal R1, then this would forever be the benchmark for the currency in this country. The developers will be offering buy back guarantees to retailers that accept the tokens in-store.
Two of the biggest challenges related to launching an African crypto currency is varying access to technology and creating trust among users.
“Because Africa Master Coin is a digital currency that happens solely in a digital space, it needs to be accessed via a smart phone or computer. While there’s a challenge related to different African countries having different access to technology, the unique opportunity that has arisen is that Africa has a very high penetration of cell phones. This means that more people will be able to access, buy, and trade in Africa Master Coin,” says Gordon.
A crypto currency for the man on the street
Another challenge is public perception of crypto currencies, but successful currencies such as Bitcoin and Ethereum are already paving the way for public uptake of this form of digital transactions.
“People are often still cautious about using digital currency because they’re used to being able to see and touch their money. Africa Master Coin isn’t just for large retailers and investors, it’s also for normal people who want an easier and safer way to make international purchases, travel overseas on holiday or send money to family members,” concludes Gordon.