The idea of the African continent adopting its own crypto, particularly in the form of stablecoins, was discussed at the SiGMA Africa event, which is being held in Kenya.
One of the panel discussions held during the event was titled: ‘Mobile Payments vs Crypto Payments, who wins?’
Harmen Brenninkmeijer, Managing Partner at NYCE International Ltd, Jeremiah Msangi, Managing Director at Bizin Africa Group and Piotr Plasecki, Board Member at Revenue Capital LLC took part in the debate.
Msangi explained that most people in Kenya are already using mobile money, but he thinks there will soon be a shift towards crypto. “Around 20% of the population has used it at some point. I think in 5 years from now it will be at 50%.”
Is Africa teaching the world or is the world teaching Africa in this regard, asked Brenninkmeijer.
“At the moment technology is outside of Africa. But Africa is adopting the capital sources produced outside of the continent in a fast and efficient way,” said Piotr Plasecki.
“Crypto is not a money at the moment, but more of a means of exchange. So transactions at the moment are happening between crypto owners. It will take time to have real money in the Web3 world. To have this as a money we need to have it as a means of payment, not only as a means of exchange,” Plasecki continued.
Msangi agreed: “Some countries like South Africa are regulating and using crypto as an asset because this is not competing with currencies regulated by national central banks. I think every country will have its own digital currency.”
Brenninkmeijer floated the idea of Africa having a stablecoin similar to USDT. “But how are the banks going to regulate it? I can see this happening on a local currency level, but what about the case where there is one currency used by several African countries?”
“We already have a unique currency that is being used across the world. Like these stablecoins. You can use it to pay into Africa and out of Africa. All transactions in Africa are currently being referenced in USD. Perhaps Africans can come together and select one of their countries to become a supercurrency and then have a digital currency that is linked to that one.”
Msangi also insisted that Africans need to be more informed more about Crypto and its different uses.