Senegal could become the primary country to unleash a cryptocurrency supported its national currency. Several days ago, Senegal introduced eCFA, a digital currency presently in Delawarevelopment unitedly with Banque Regionale de Marches and eCurrency Mint limited. Banque Regionale Delaware Marches bank, a Senegal-based institution specializing in capital markets and the implementation of custom banking solutions, is leading each the event and integration of the digital currency, that the Senegal government states would function a medium of exchange.
Similar to the vision of Norway’s largest bank DNB, Senegal is attempting to secure a big market share of Africa’s severely under banked and underserved populations, which are troubled to seek out access to reliable and cost-effective money platforms and networks to settle cross-border transactions.
Interestingly, the event and launch of eCFA is overseen by the West African Economic and financial Union, that suggests that when prepared for business roll-out, eCFA are going to be created obtainable for alternative African countries together with Benin, Burkina Faso, cote d’Ivoire, Niger, Togolese Republic and others.
Upon the primary announcement of plans to develop eCFA, Banque Regionale Delaware Marches bank also because, the Senegal government received criticisms from cryptography specialists and analysts because of eCFA’s dependence on a centralized banking industry. So, if eCFA relies on its national currency, it defeats the aim of implementing a digital currency.
Banque Regionale Delaware Marches bank chief executive officer Alioune Camara, explicit earlier this month that it’ll assist the Senegal government in making a system which may facilitate ability between all money applications, platforms and networks inside the region.
Alioune Camara said:
“An eCFA backed by our banking industry and the central bank is the safest and most secure method to modify the digital economy. We will currently facilitate full ability between all e-money payment systems. This is often a good breakthrough for Africa.”
However, Banque Regionale Delaware Marches and eCurrency Mint restricted have nonetheless to unleash any technical data and background on their Blockchain-based digital currency.It’s still unknown whether the currency are going to be supported a permissioned ledger or a localized Blockchain network. If the latter, the bank can struggle with existing money rules.
If the bank opts for a permissioned ledger, numerous security consequences can result in problems with the preparation method, which can prove progressively inefficient for each the bank and its future users.