Dr. Oluseyi Akindeinde, the Chief Technical Officer of Digital Encode Limited, thinks that implementing blockchain for transactions will speed up the accomplishment of the trade agreement’s objectives when overseas trading is top of the agenda with the African Continental Free Trade Area (AfCFTA) agreement.
At the Africa Tech Alliance Forum (AfriTECH2021) in Lagos, Akindeinde highlighted the benefits of blockchain for payment, claiming that it lowers the risk of corruption and transaction fees.
The CTO of Digital Encode, an information security management, and compliance advisory firm, identified the Pan African Payment & Settlement System (PAPSS) as an instance of a system intended to help with the predicted growth in overseas transaction volumes throughout Africa.
Blockchain, he added, allows for peer-to-peer payments without the involvement of a middleman.
“With it, participants will no longer need to convert local currencies into hard currencies which then entailed the funds leaving Africa to be converted before being sent back again to the beneficiary bank – adding days to the transaction time.” Akindeinde said.
He argued that to finance cross-border commerce, Africa’s central banks must work together with the PAPSS to establish a payment service to which commercial banks, payment firms, and fintech companies from throughout the continent may join as “Participants.”