Experts at the ongoing 2021 African Economic Conference (AEC) say that a common crypto currency and an integrated capital market can boost trade in Africa and sustain growth after the COVID-19 crisis.<\/p>\n\n\n\n
They said this during a panel discussion on reforming Africa\u2019s financial system at the AEC holding in a hybrid format with physical and online participants in Cabo Verde.<\/p>\n\n\n\n
Anouar Hassoune, Professor of Finance and CEO of the West Africa Rating Agency, believes that a common crypto currency would ease the cost of doing business and give the continent an identity.<\/p>\n\n\n\n
\u201cWe need to come up with a crypto currency that is acceptable to each member state.<\/p>\n\n\n\n
\u2018\u2019It is better to do it at the continental level, and we have the expertise to do it, because it is a matter of governance, not an issue of technology.\u2019\u2019<\/p>\n\n\n\n
According to him, the proposed crypto currency can serve as an alternative to monetise some of the continent\u2019s endowments, such as gold and other commodities.<\/p>\n\n\n\n
Mr Augustine Ujunwa, an economist at the West African Monetary Institute (WAMI), said a well-functioning integrated capital market is very crucial in raising debt to finance Africa\u2019s developmental needs.<\/p>\n\n\n\n
\u201cCurrently our markets are small, our countries are small, we need to adopt a regional approach towards integrating markets.<\/p>\n\n\n\n
\u201cHowever, before we get there, we must harmonise our laws, regulations and protocols governing our fintech and digital systems.\u201d<\/p>\n\n\n\n
Ujunwa said central bank financing had become critical, especially in the wake of the Covid-19 crisis.<\/p>\n\n\n\n
\u201cCentral banks should go beyond their price stability role and pursue a growth-focused monetary policy. They should begin to think of innovative ways of providing finance for the critical sectors of the economy.\u201d<\/p>\n\n\n\n
Ms Emmanuelle Drouin, head of the Economic and Financial Transition Department at Agence Fran\u00e7aise de D\u00e9veloppement, supported the idea of a pan-African crypto currency, but said there were some prerequisites.<\/p>\n\n\n\n
\u201cWe should not forget that there is a lot of work to be done on the digital infrastructure, the development of payment systems, payment system interoperability really needs to be worked on.<\/p>\n\n\n\n
\u201cSo, there is a lot of work to be done in collaboration with the financial institutions on digitalisation of delivery and payment channels.\u201d<\/p>\n\n\n\n
She added that while central banks have a crucial role, it is essential for economies to diversify funding sources to lessen dependence on them.<\/p>\n\n\n\n
Other panelists said that the existence of various regional groupings and their different protocols, including cross-border payments, needed to be addressed to facilitate the implementation of an integrated capital market.<\/p>\n\n\n\n
According to them, the continent first needs to harmonise national rules and protocols governing the financial systems of individual countries to make the reforms workable.<\/p>\n\n\n\n
They said that experience had shown that some countries were reluctant to allow other protocols to interface with their systems.<\/p>\n\n\n\n
The 16th AEC brings together a wide range of stakeholders, including policymakers, development institutions, the private sector, and researchers, to discuss ways to sustainably grow the continent\u2019s development funding sources.<\/p>\n\n\n\n
Organised by the African Development Bank (AfDB), the United Nations Development Programme (UNDP) and the Economic Commission for Africa (ECA), the conference which began on Thursday will end on Saturday.<\/p>\n\n\n
Experts at the ongoing 2021 African Economic Conference (AEC) say that a common crypto currency and an integrated capital market can boost trade in Africa and sustain growth after the COVID-19 crisis. They said this during a panel discussion on reforming Africa\u2019s financial system at the AEC holding in a hybrid format with physical and […]<\/p>\n","protected":false},"author":2,"featured_media":2464,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125,241],"tags":[579],"class_list":["post-38695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-money","category-foreign","tag-cryptocurrency","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n