Africa Turns to Stablecoins to Unlock $70B in Trade

The African Continental Free Trade Area (AfCFTA) Secretariat, in collaboration with the IOTA Foundation, Tony Blair Institute, and World Economic Forum, has launched a digital trade initiative centered on stablecoins to transform cross-border trade across 55 African nations. The initiative aims to replace opaque and document-heavy processes with stablecoin-based settlements, notably using USDT for instant payments. This change is expected to cut transaction costs significantly and reduce border delays by over 50%. Initial trials in Kenya and Rwanda have already yielded notable efficiency improvements. The goal is to integrate all AfCFTA nations by 2035, potentially doubling intra-African trade and unlocking up to $70 billion in economic value. The project also seeks to enhance trade finance options and reduce document fraud, presenting a major opportunity for African economies to modernize their financial infrastructure using digital currencies.

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