Home Cryptocurrency Africa named first market for China's digital yuan

Africa named first market for China’s digital yuan

According to Tendai Tomu, famous author of Libra in Africa, he has made a prediction that upon the launch of China’s digital Yuan, one of the first markets, after China, it will expand into will be Africa.

Tomu made this prediction owing to the fact that China has a very good relationship with many African countries.

According to reports, the launch of CBDC is going to bring competition to Facebook Libra as several countries sees the project a threat to their economy.

China became the first country to announce its plan to launch a Libra like project with its own digital yuan set to launch in 2020.

In an interview with Tomu, he explained that Africa will be the first market where crypto will launch because China has been helpful to Africa and been offering them loan and Aid in several ways.

Because China has a very good relationship with most African countries. It doesn’t impose sanctions on African countries. It does encourage trade with most African countries Tomu said.

However, CBDC remains a concern with its expected launch in Africa as it won’t solve the problem of the unbanked communities or even remittance issues in Africa.

With Facebook’s Libra motto “to bank the unbanked,” CBDC is the digital project tipped to launch in the African market in 2020.

The CBDC will only be helpful in Africa to conduct intercontinental trade between Africa and Asia.

China’s many Aids to Africa

Africa is regarded as one of the most impoverished and underdeveloped continents of the world.

Owing to this, it is vulnerable and requires help from other developed nations of the world which China continues to provide for her.

It could be measured that close to fifty percent of foreign Aids that comes into Africa is from China as these aids come in different form like money, loan, military/infrastructure support etc.

An outlay of China’s aid over the last decade to Africa has risen to as much as $15 billion in 2018.

The aid China has continued to provide Africa has begun to stir controversies in Africa and the world that with China’s aid to Africa, they continue to underdevelop the continent.

About China’s digital yuan

The china’s digital yuen launch will see it become the first central bank digital currency to make any impact.

 The yuan makes use of a private distributed ledger controlled by the PBoC and if successful, this currency can genuinely threaten traditional banking.

Moreover, the digital yuan makes the floating exchange rate system obsolete.

China is allegedly trying to get rid of the US Dollar as well as all of this makes the digital yuan a thing worth keeping a close eye on.

Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism


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