The international settlement platform for fiat in Africa could be seen as a dedicated way to limit the people of Africa from accessing free unlimited movement of goods and services across its various borders by the difficulty associated in making payment for such transactions.
This is not expected to be so, as most African countries share some level of similarities in culture, language, and religion. Consequently, it is expected that trade and commerce should flow unhindered amongst such Nations in the African continent without barriers.
What does the problem look like?
To transfer funds from one country to another, investors and other business ventures must go through stringent procedures. For example, a businessman from Nigeria must route his funds from a Nigerian bank to an offshore account in Germany, which is then routed through a French bank, and then finally to a bank in Ivory Coast to complete the transaction.
The transaction may take a few days or weeks to complete, and it may also cost a lot of money (transaction fees) on both sides for it to be a successful one. The same is true for firms located in the southern parts and northern parts of Africa.
What is the way forward?
The creativity associated with blockchain technology and cryptocurrencies is an outstanding achievement and one which most African countries would cherish in years to come. This is evident in the methods of transaction for new businesses both small and large as they now tend to migrate to more convenient methods of making transactions on a global scale.
The use of Blockchain technology and cryptocurrency
Many small businesses and large corporations are now adopting the use of cryptocurrencies as a means of payment for goods and services. Several of these predictions have come true as educational content and mass adoption efforts by crypto enthusiasts target African countries that appear to have more difficulties with payment systems.
The associated benefit of the key characteristics of blockchain in finances especially with the use of cryptocurrencies which includes but is not limited to immutability, fixed supply, tamperproof, and transparency, which have given more credibility to the use of cryptocurrencies in the African continent in recent times.
Also, the outstanding benefits of lower cost of transaction and the speed have also endeared the use of cryptocurrencies as the businessmen observe that their transactions are instant and cheaper, unlike the traditional finance system.
We live in a global village where activities should be conducted from the comfort of our homes or offices using the internet, and therefore we should embrace new technologies that would facilitate the speed of financial transactions.
So that from the eastern countries of Rwanda, Kenya, and Ethiopia, businessmen can make deals with people from Nigeria, Ivory Coast, and Liberia instantly. While our brothers and sisters up north of Africa in Egypt, Algeria, and Tunisia can trade with our Zulu brothers in South Africa, thereby making our continent a market without borders.
The Klever community is thriving in the African continent and we are looking forward to increasing our engagement with more countries that are yet to take the opportunity of integrating their business on a global scale by subscribing to the new way of making payment using the Klever Wallet.
We would like to encourage small businesses and large corporations alike to take advantage of educational materials and engage our social media platforms for more information on the transformative financial system by the use of blockchain technology. Thereby removing any form of financial barriers in their business models and in turn, helping them scale in a global market system.