African crypto-currency Afri Union Coin, formerly known as African Master Coin, developed by Africa Master Blockchain Company (AMBC), is set for launch to the public in December.
According to the company, the coin will be tradable from the beginning of 2019, and various telecommunications and retail clients across SA are busy modifying and preparing their financial ecosystems for the arrival of the new digital currency.
In April, the company announced it was developing an African-focused crypto-currency that it hopes will take on established players like Bitcoin.
Several industry players have told ITWeb that an Afro-centric crypto-currency is a welcome development, saying the continent can benefit from digital currencies that are designed to address specific market needs and challenges, such as unlocking sustainable development.
AMBC was established in 2015 with the goal to develop a technological solution for SA using blockchain technology. It was founded by Trapeace Holdings, which operates in multiple industries, such as service provisions for traffic enforcement, technology, medical and engineering, but operates completely separate and on its own.
Digital future
George Gordon, director of AMBC and board member of the Africa Blockchain Association, says the future of currency is digital and Africa could potentially lead the way.
He points out that the industry needs to lay the groundwork so that people can switch from cash and cards to digital currencies swiftly and easily.
Gordon is originally from Europe; however, he has been in SA since 1997. He has an undergraduate degree in economics and marketing and an honours degree in financial economics.
"Blockchain has taken the world by storm and Africa shouldn't have to play catch-up. We should be revolutionising our own payment systems and pushing the technologies we are developing within our own borders," says Gordon.
He notes this vision aligns with president Cyril Ramaphosa's goal of a single African currency, which would be the next step to an African Continental Free Trade.
Afri Union Coins will link the various African countries, making it similar to regular currencies but with myriad benefits for companies, investors and end-users, says AMBC.
Gordon explains that although the currency has been developed for Africa, Afri Union Coin will be marketed and used as an international currency, adding that one of the goals for the currency is to create more business opportunities for Africans.
The Afri Union Coin team used international road shows to spread awareness about the currency and answer questions the international parties had about the currency.
"If an African business person or entrepreneur opens a store that sells goods from Japan, for example, they can use Afri Union Coin to make international payments more affordably and securely," says Gordon.
He adds that while businesses and entrepreneurs will benefit from the African crypto-currency, the biggest market the company is pursuing is the man on the street.
"We want Afri Union Coin to be accessible to people who aren't educated in investment or professionals in the banking or trading sectors. It's easy to use, so there won't be a big switch-over. Africans already have a phenomenal cellphone penetration rate, so it would only make sense for people to have a platform that handles their wealth more securely in the digital space instead of carrying around cash and credit cards," says Gordon.
Over the past few months, the Afri Union Coin team has conducted multiple road shows overseas, including hosting seminars and presentations in Korea, Singapore, Dubai and Japan.
"We're looking forward to the AMBC Blockchain Seminar as it will be a key opportunity to align our strategy with that of our partners. The international road shows helped solidify Afri Union Coin as a currency of choice for doing business across borders."
Cumbersome process
According to Gordon, 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 Afri Union Coin as accessible and usable as possible."
Another way Afri Union Coin can help address problems in African countries is by creating unique opportunities for those with low cash reserves, he notes.
"Zimbabwe, for example, has low cash reserves and a crypto-currency can help government address these issues. 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," says Gordon.
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