Africa Turns to Stablecoins, IOTA to Unlock $70B in Cross-Border Trading

The African Continental Free Trade Area (AfCFTA) Secretariat and the IOTA Foundation are launching a digital trade initiative that centers on stablecoin-based settlement to improve cross-border trade across Africa. Their project, ADAPT, aims to digitize trade processes for all 55 member states, utilizing USDT for instant payments and verifiable trade documents. This initiative is projected to cut transaction fees, reduce processing times by over 50%, and eliminate document fraud, with goals to double intra-African trade and unlock $70 billion in economic value by 2035. Initial implementations in Kenya and Rwanda have shown significant reductions in paperwork and transaction times, suggesting potential for broader adoption across the continent. The project seeks to mitigate the high costs currently faced by African traders, while also allowing countries to leapfrog outdated financial systems and directly embrace the use of stablecoins.

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