Senegal recently officiated the use of blockchain based digital currency known as eCFA. The country is actually the second country to embrace the use
Senegal recently officiated the use of blockchain based digital currency known as eCFA. The country is actually the second country to embrace the use of digital currency, the first being Tunisia, which introduced the e-Dinar to its citizens a while back.
Senegal announced the move last week. The country, which is the most Western point in Africa, previously used the Central African Franc alone, which is abbreviated to CFA Franc. This currency is actually used in 14 countries in the central African region, most of which are former French colonies. These countries have a loose monetary union, much like the Euro is in countries in the northern region of Africa. The Senegal government has further announced that there will be no difference between the digital currency and the paper money that is currently being used in the country.
However, it is important to note that this currency will differ from most other crypto- currencies in one critical aspect. The circulation of most crypto- currencies is independent of the influence of governments or any individual for that matter. One such popular currency is the bitcoin, whose creation and use is regulated by virtually every member of the bitcoin community. This is however not the case with the eCFA. The circulation and flow of this digital currency will be regulated by Senegal’s central bank.
The creation of this currency is a result of the combined effort between the Banque Regionale de Marchs and eCurrency Mint Limited. The latter is a relatively new e- Currency that is based in Dublin. Senegal has now paved the way for other countries that have long been considering the use of block- chained based digital currencies. Such countries include Sweden, Singapore and China. The UK Royal Mint also announced that it would use block chain technology so as to allow people to have an easier time trading gold bullions.
Block chain technology is an ideal currency as it is very transparent and secure. It is especially helpful in situations where transparency is paramount, such as in handling land management records, controlling contaminated food chains and handling disaster relief management funding. The high levels of transparency that block chain technology affords users stems from the fact that every transaction that is carried out using this technology is automatically updated on every community member’s database. As such, manipulating the system for selfish gains is exceedingly difficult, because no transaction ever goes unnoticed by many people.
Senegal and Tunisia have proven that Africa meant what it said when it promised to embrace the use of Finetech, even when most other countries are still hesitant to use this technology. India is also expected to follow suit, given the big financial changes the country has undertaken in the past few years. The demonetization of many of its currencies has seen a huge vacuum get created in India’s economy, although certain companies have benefited a lot from the vacuum. Currently, credit cards and debit cards are riding a wave of popularity in India. But it is still very probable that India will embrace the use of blockchain based e-Currency.