How One African Cryptocurrency Might Improve Unity and Economic Development in Africa

The United States of America has acted as a role model to many countries in the world. Through the unification of the 50 states, the country grew to become the most powerful and offer some of the best opportunities for the citizens and foreigners. As a result of the progress and the power the United States of America has had over the years, other countries have tried to unit and improve their country’s fortunes. The United States of Africa is one of peopthe le’s dreams for years. Considering the current borders in Africa were developed by colonial powers, the borders caused a problem for local people who had borders dividing clans, families, and tribes. One of the best examples is how the Maasai tribe was divided into two by the border between Kenya and Tanzania. The Maasai occupy the Southern part of Kenya and the Northern part of Tanzania. A United Africa will reunite the tribe to live without borders between them.

One of the challenges that have been delaying the development of a united African state is the difference in currencies used with different values in the money market. Some countries suffer from a currency with low value, while others are almost at par with the American dollar. One of the easiest solutions to this problem was presented with blockchain technology and cryptocurrency development. The best advantage cryptocurrency offers to the problem is that its value remains the same and is easily accessible wherever a person is as long as they can access the internet. One currency for all African states offers some incredible advantages to the countries. Some of the benefits include;

Boost Trade

The first advantage of developing one cryptocurrency to be used in all African states is that it boosts trade among African countries. The best solution will be among people living along borders dividing countries. They will have an easy time purchasing goods and services from neighboring countries. Apart from these people, it will be easier to buy or sell products to other countries in Africa. With the current rate of infrastructure development in Africa, transporting goods to other countries will be easy, and first, with the use of a common currency in the form of cryptocurrency, will only improve trade and selling goods to people and organizations in neighboring countries will be considered as easy as local trade. People will not have to go through the tedious process of converting their currency to local currencies in different countries.

Attract Investors

Since the development of a common cryptocurrency in Africa will boost trade, investors will identify the business opportunity due to the improvement of the African economy. Both local and international investors will be rushing to invest in the United States of Africa; considering the benefits to both the economy and the citizens that will be realized with the investments made, developing a cryptocurrency to be used in Africa proves to be the way to go.

Boost Local Tourism

One of the best and highest earners for most African countries is tourism. But the funniest thing is that most Africans have not traveled to many tourism destination sights in Africa. When a common cryptocurrency is developed and used as a legal tender to purchase goods and services, local tourism in Africa will improve. Since people will not have to convert their currencies, it will be easier to travel from one state to the other.

Create Job Opportunities

As a result of the improvement made in business, the new investors attracted by the improvement in the African economy and the improvement in both local and international trade, the next thing that will be realized is that there will be more job opportunities in Africa. Considering that the average age in Africa is around 20 years old, the young population in Africa will have better job opportunities. As a result of job opportunities in the sectors mentioned and others created as a result of cryptocurrency investments, the African citizens will have better lives, meaning that the quality of life in Africa will improve.

Reduce the Rate of Inflation

One of the greatest problems with the local currencies in Africa is inflation. In the past, the value of the currency was controlled by the amount of gold deposited in the central banks. People and the government would deposit gold in the bank and get tokens worth the value of the gold deposited. When the law was no longer in effect, presidents and countries would print money at will, which led to inflation. This is one of President Muammar Muhammad Abu Minyar al-Gaddafi of Liberia’s projects for Africa before he was killed.

Since this project is no longer active, developing a cryptocurrency to serve as the African currency is the next best thing. The best advantage cryptocurrency offers as a currency is that the value of the currency is produced during the development of the blockchain developing the currency. Adopting a cryptocurrency to serve as the currency in Africa is the next best thing to gold since the development of new cryptocurrency is limited. Leaders and governments will not have the power to print new money at will and reduce the value of the currency through inflation. The new currency will have to be produced through blockchain technology, meaning constant value.

Increase the Value of the Currency

Another advantage of adopting a cryptocurrency as the main currency in Africa is that cryptocurrency increases value, unlike other local currencies. A good example is how Bitcoin was worth cents when it was first developed but is now worth over $40,000. The African continent’s advantage is that the value of the economy will rise and improve the financial position compared to other countries. Considering the value of the currencies in Africa, this will be an achievement considering the low value for most African currencies. The increase in value of the African currency will have a huge impact in cementing the African economy to the rest of the world.