How blockchain can be deployed to solve intra-regional trade challenges
When we often speak of blockchain, the first thing that comes to mind is bit coin or some form of crypto, but are we fully utilising the potential of the blockchain technology behind it? CNBC Africa spoke with the Head of Regulatory at Responsible Financement, Sofia El Mrabet for more.
Fri, 20 May 2022 14:42:43 GMT
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AI Generated Summary
- High cost of cross-border transactions in Africa can be mitigated by blockchain technology and cryptocurrencies
- Regulatory clarity and consumer protection are crucial for sustainable blockchain adoption in Africa
- Developing a robust ecosystem and supportive regulatory environment are essential for African startups to achieve unicorn status in the fintech industry
Blockchain technology has long been associated with cryptocurrencies like Bitcoin, but its potential goes far beyond that. In a recent interview with CNBC Africa, Sofia El Mrabet, the Head of Regulatory at Responsible Financement, discussed the various use cases of blockchain technology and the challenges Africa faces in harnessing its full potential. El Mrabet highlighted the importance of education and regulation in enabling the growth of blockchain technology and ensuring consumer protection. She emphasized the need for a unified regional approach to regulation to foster innovation and economic growth.
One of the key challenges facing Africa is the high cost of cross-border transactions, with fees ranging from 7% to 20%. Blockchain technology and cryptocurrencies could offer a solution to this problem by enabling more efficient and cost-effective payment systems. However, regulatory clarity and consumer protection are essential to mitigate risks associated with these technologies.
El Mrabet also discussed the importance of developing a robust ecosystem for blockchain technology to thrive. She stressed the need for stable regulation and strategic public policy initiatives to attract investment and foster innovation. Achieving unicorn status, like European fintech companies, is within reach for African startups leveraging blockchain technology, but it requires a supportive regulatory environment and a cohesive regional strategy.
In conclusion, unlocking the potential of blockchain in Africa requires a multi-faceted approach that combines education, regulation, and regional cooperation. With the right framework in place, blockchain technology has the potential to drive financial inclusion, stimulate economic growth, and position African startups as global leaders in the digital economy.