Trapeace Holdings is developing a crypto-currency for exclusive use in Africa, and hopes to launch it before the end of 2018.
The tokens are designed to link to the various African currencies, so it will be similar to regular currency, but with crypto-currency features added.
Trapeace Holdings has partnered with a Korean blockchain platform development team and Comet, a Singaporean initial coin offering (ICO) marketing company to create the Africa Blockchain Foundation, which will develop and launch the Africa Master Coin.
George Gordon, Director of Trapeace and board member of African Blockchain Association, says the Africa Master Coin will enable more efficient foreign investment from overseas as well as faster and easier trade within Africa.
“Many African companies operate across borders within the continent and paying suppliers is known to be a cumbersome process. A uniquely African crypto-currency will greatly improve cross-border payments between African countries. Our goal is to make the Africa Master Coin as accessible and usable as possible,” says Gordon.
Africa Master Coin is also expected to benefit countries with low cash reserves.
“Zimbabwe, for example, has low cash reserves and a crypto currency can help government address these issues,” says Gordon. “For citizens in Zimbabwe, a crypto-currency will also offer them protection against hyperinflation, volatile local currencies and financial uncertainty, as well as news that the president of Zimbabwe announced his support for crypto-currencies which is a positive.”
Africa Master Coin will produce tokens that are fixed at a constant value to local currencies. South Africa, for example, would have a local token that is fixed to the rand. If 10 Africa Master tokens equal R1, then this would forever be the benchmark for the currency in this country.
The developers will offer buy-back guarantees to retailers that accept the tokens in-store.
Two of the biggest challenges related to launching an African crypto-currency is varying access to technology and creating trust among users.
“Because Africa Master Coin is a digital currency that happens solely in a digital space, it needs to be accessed via a smart phone or computer,” says Gordon. “While there’s a challenge related to different African countries having different access to technology, the unique opportunity that has arisen is that Africa has a very high penetration of cell phones.
“This means that more people will be able to access, buy and trade in Africa Master Coin.”