Africa has exploded in terms of Bitcoin development. It comes as surprising news to many as Senegal officially announced its new digital currency based on Blockchain technology. This makes the country one of the first in the world to nationally introduce this type of technology, recognising it as a legal tender, subject to all monetary regulations.
“The eCFA is a high-security digital instrument that can be held in all mobile money and e-money wallets. It will secure universal liquidity, enable interoperability, and provide transparency to the entire digital ecosystem in WAEMU,” an excerpt from the release added.
The eCFA is set to spread to a handful of African countries including Cote d’Ivoire (Ivory Coast), Benin, Burkina Faso, Mali, Niger, Togo and Guinea-Bissau after effects and impacts are monitored in Senegal which will be the first country to receive the technology. The blockchain based technology is aimed at working with the current fiat system which is based around the Franc. Furthermore it has been announced it will be compatible with the current digital currency services to enable ease of use and increased functionality on the get go.
To conclude the groundbreaking move will see much of western Africa eventually adopt a digital currency which while centralized to a bank, will be able to act as fiat currency, allowing much of the population to bank, transact and save via this medium. Aiming to bank much of the unbanked the digital currency will provide access to many products banks may offer that would be out of reach to fiat using customers without access to banks themselves. Not only is it anticipated that the digital currency will aid the integration of various other projects, but other countries follow suit to a modern financial society.