Browsing: Central Bank Digital Currencies

When CBDCs first came to the fore, many touted such a move as a game-changer in digital finance. Many had thought that the adoption of CBDCs in Africa would take the shape of the adoption of cryptocurrencies, where the region leads in many aspects. However, challenges remain. Lack of the requisite infrastructure, low levels of financial literacy, and operational and regulatory challenges have combined to contribute to low penetration and adoption rates for CBDCs.

The lack of adoption is a current failure point for many launched CBDCs. Nigeria’s eNaira had a million customers one year into its launch, a smattering of its 221 million population. The real challenge of CBDCs lies in developing a clear sense of purpose. African central banks must answer to the kind of role that CBDCs will play in the economy and financial systems.…

• Chidi hopes that activism will eventually see European museums return all stolen artwork to Africa. However, he dreams of building a metaverse that comprises all the pieces Looty reclaims
• The Looty project started operation in November 2021 but will officially launch its website on May 13. The upcoming website will only support the purchase of NFT art via cryptocurrency
• Aside from Chidi, the project also involves two other Nigerians and a Somali, with each team member specializing in 3D design, NFT technology, or editing
• The project has already created 25 NFTs, among them the famous “Benin Bronzes” in Nigeria that were looted 125 years ago

During the pre-colonial error in Africa, a wide range of valuable artefacts were taken away to the western countries. About 60 years later, Africans feel the need to get the artworks back to preserve their history. However, one Nigerian art firm called Looty has come …

• It is not easy to create a common currency since it needs the creation of a central monetary system for several nations
• The AU and ECOWAS should reconsider their approach—a common physical currency—and move their attention to building a common digital currency, as the EU is doing
• With the establishment of the Pan-African Payment and Settlement System (PAPSS), which allows for the simple conversion of numerous African currencies, some progress—or maybe too little—has been achieved
• When turned into digital money, Africa’s weak currencies have little chance against stablecoins backed by the US dollar

It is not easy to create a common currency and it would need the creation of a central monetary system for several nations.

This is a regime that, given the diverse economic demands of countries, may be judged undesirable for some member states. Africa’s desire for economic and monetary integration dates back many years.

African Union