22 Aug Are Central Bank Digital Currencies Going to Be Useful for eCommerce and Online Payment Across Africa?

There are a number of initiatives for research and possible implementation of CBDCs (Central Bank Digital Currencies) in various African countries.  Cardano is working with the Ethiopian government, the South African Reserve Bank recently put out a tender for assistance in exploring the possibility of implementing blockchain and designing a CBDC to digitise ZAR.

Moving from analogue (paper) to digital is a big step and it could make more sense to take elements of the current system and find ways of implementing DLT (Distributed Ledger Technology).  IBM has some very good permissioned DLT technologies, which isn’t the utopian aspiration of the libertarian movement, but could well improve the management of country currencies.

There is talk of the mobile money operators being integrated directly with the central bank for a linked payment system, but that would cut out the banks which might not be a popular move.  Banks and governments are often quite closely linked and dependent on each other.

Bankserv - Online Payments Africa

An interesting new development is Bankserv who do the clearing and provide payment services for and to a number of institutions, banks and payments companies across Africa and beyond which could position them well for an interoperable payments system.

Whilst this is very high level and I’m just postulating, what is clear is that digital payments are in their age of exploration.  For the foreseeable future, the combination of mobile money, cards and bank transfers are well established and entrenched for online payment for eCommerce across the African continent.

The main markets for eCommerce and with solid and well established online payments are South Africa, Nigeria and Kenya. 

If you are a multinational eCommerce company looking to expand to Africa for your online payments then contact African Payment Solutions now