Africa is making bold strides to break free from dollar dependence with the launch of a new blockchain-based currency exchange. Developed by the Pan-African Payment and Settlement System (PAPSS), a company established by the African Export-Import Bank (Afrexim) and backed by African leaders, the platform allows companies to trade local currencies directly, bypassing the US dollar. Targeting airlines and multinationals facing challenges repatriating profit, the system finalizes transactions in an average of seven seconds. PAPSS also plans to integrate stablecoins such as Nigeria’s cNGN in the future, further streamlining cross-border payments. While intra-African trade remains modest, the exchange could save the continent $5 billion in conversion fees and energize the African Continental Free Trade Agreement’s (AfCFTA) free trade goals. However, experts caution that trade volume must grow to fuel real demand for African currencies.
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