Charles Hoskinson predicts the creation of a pan-African currency
A common currency in Africa. Cardano creator and CEO of the Input-Output Hong Kong (IOHK) company, Charles Hoskinson, predicts the creation of a pan-African currency that could be built on the Cardano blockchain if early adoption of the cryptocurrency is encouraged. IOHK aims to give access to the financial system to the 3 billion unbanked people living in Africa.
The interest of the Cardano Foundation in Africa is not new. Nathan Kaiser, Chairperson of the Cardano Foundation, says:
“Legislation is key to adoption and real use cases of blockchain. The Cardano Foundation is proud to be at the forefront of shaping blockchain-enabled sustainable growth in Africa. We are open to working with the continent’s countries to establish robust governance policies and assess existing laws and policies. We aim to help African nations shape legislative and commercial standards while ensuring accountability, which will create new jobs and ensure sustainable growth. Blockchain will allow African countries to diversify their economies and help the continent increase its innovation and investment attractiveness.”
Hoskinson posted a video update talking about the future of Cardano and its adoption in Africa. He referred to the continent as Cardano’s “final frontier” and highlighted the enormous potential of the region.
Different Projects
One of the promoted projects in Ethiopia involves using fertilizer coupons. The project is part of an initiative to help African farmers with their products and distribution capabilities. Fertilizer coupons are a way to improve the distribution of resources that go to African farmers. Hoskinson determined that they can build an ID system, from there, build a reputation system, a market, and product distribution without government participation or arbitrage.
According to Hoskinson, the project enables the creation of all kinds of new financial products that can dramatically improve the lives of the poorest while improving the economies of developing nations. For example, fertilizer coupons have a high repayment rate ranging from 15% to 25% of annualized return. One possibility is to pack the coupons into assets and then sell and trade them in regulated financial markets.
Hoskinson affirms that Africa is an exciting place to do business. The share of people under 30 is nearly 70%. All these young people are aware of technological advances and are begging for a change in the system’s rules.
IOHK is focused on building a new financial system along with Cardano. This sets IOHK apart from other projects like Tezos, Ethereum, or EOS. Creating a new financial system is a secondary effect of the solutions IOHK is working on. This new system, Hoskinson said, will give access to financial markets to nearly 3 billion unbanked people. A pan-African currency is likely to emerge in the next 30 years. Furthermore, Hoskinson said the common coin might be a cryptocurrency built on the Cardano blockchain.
More Information
- The work of the Cardano Foundation with African nations to develop blockchain governance.
- Charles Hoskinson at LSE, Cardano’s goals for Africa (Video).