Economists see Africa as a great opportunity to leverage cryptocurrencies for economic growth.
Some African economists believe that Africa should now look to cryptocurrencies to revitalize the continent, adding that cryptos will improve trade and help the capital market achieve sustainable growth.
This is partly because they see the potential for Africa growing more if cryptocurrencies are used as a growth engine for the economy. This is in line with a report by the African Development Bank Group that looks at reforms in Africa’s financial system.
On the issue, Anouar Hassoune, Finance Lecturer and CEO of West Africa Rating Agency, remarked, “Cryptocurrencies are generally effective in lowering the cost of doing business. Many parties will need to accept cryptocurrencies in any country. It would be great if there was a regional discussion on this.”
But for this to happen, digital economic infrastructure needs to be built. Cryptocurrencies could be a good financial alternative for some African countries. These countries can collect crypto coins instead of gold or other commodities.
Emmanuelle Riedel Drouin, head of economics and finance at the Agence Française de Développement, expressed the need to talk about this issue. It is important to have an infrastructure to support the digital economy. Whether it is the development of payment systems or the cooperation of different financial institutions to facilitate the opening of payment channels.