According to Bitcoin.pl, Africa wants to have its own euro - their own currency for the entire continent. So far, 9 countries approved this idea. The name of the new currency is ECO.
Where did this idea come from?
Currently Africa has many links with French currency (West African Franc). The goal is to free Africa from those links and create its own independent way to pay. Significantly, the euro is the guarantor of eco's convertibility, not the dollar.
At the end of 2019, the countries of ECOWAS (Economic Community of West Africam States) signed a declaration about creating a new eco currency in Nigeria Abuja. Continental media, for example The Africa Report, are already writing about the case.
Ghana convinces politicians from other countries to its vision. In total, 9 countries are ready to introduce eco, i.e. a common coin for the region. In addition to Ghana, these are: Benin, Burkina Faso, Guinea-Bissau, Mali, Niger, Senegal, Togo and Ivory Coast.
Will it be a cryptocurrency?
It is not know yet, but there are some speculations. Will it be a digital currency (based on blockchain?), Only a unit of account (something like Bankor, which was the project John Decyn thought about decades ago) or a fiat currency like the euro.
The four basic criteria that every country that wants to have eco must meet are:
- One-digit inflation rate at the end of each year.
- Fiscal deficit not exceeding 4% of GDP.
- The level of financing the budget deficit from central bank resources not exceeding 10% of the value of tax revenues.
- Value of reserves covering the cost of import for a period of at least 3 months.
Introducing a digital currency idea in Africa seems to be a real idea in 2020. Despite all the stereotypes, the access to technology, internet and media in Africa is quite high, even in poorer regions. This situation is largely due to the fact that banks do not have enough branches. Transferring funds in Africa is mainly possible via platforms such as Jack Dorsey's Square.
