🌍 Launch of the African Currency Marketplace
🚀 The Pan-African Payment and Settlement System (PAPSS) has introduced the African Currency Marketplace, a significant initiative aimed at diminishing the dependence on the U.S. dollar for trade within Africa. This project, developed in partnership with Afreximbank, the African Union Commission, and the AfCFTA Secretariat, seeks to facilitate cross-border payments using local currencies, marking a pivotal step towards financial integration on the continent.
💬 PAPSS CEO Mike Ogbalu emphasized that the platform allows transactions to be conducted entirely in local currencies without the need for foreign currency conversion, stating,
no hard currency is involved
. The system operates in real-time, 24/7, ensuring quick transaction finalization. It is supported by a network of 16 central banks, over 150 commercial banks, and 14 national switches.
💼 This development is crucial for large African enterprises, particularly airlines and industrial groups, which have encountered difficulties in repatriating funds due to exchange restrictions and currency depreciation. Ogbalu pointed out that over $2 billion is currently
trapped
in African countries where airlines operate, highlighting the necessity for this solution.
🔗 The African Currency Marketplace aims to minimize payment obstacles, improve operational security, and strengthen the monetary sovereignty of African nations. To this end, PAPSS has collaborated with Interstellar, the first pan-African blockchain infrastructure provider. Interstellar employs the Bantu network, an African blockchain that supports a comprehensive Know Your Customer (KYC) system and manages up to 43 African currencies.
🌐 Since its establishment in the West African monetary zone, PAPSS has broadened its network to 16 countries and plans to extend its coverage across the continent. The launch of the African Currency Marketplace coincides with the rapid growth of e-commerce in Africa.
⚠️ However, this initiative may provoke reactions from U.S. President Donald Trump, who has previously threatened to penalize countries pursuing de-dollarization. Despite these threats, PAPSS is committed to enabling African traders to utilize their local currencies for cross-border transactions. Rather than competing with existing financial institutions, the African Currency Marketplace aims to collaborate with banks, fintechs, and regulators to establish a fully integrated African monetary market.
