Adoption of blockchain for payments will accelerate AfCFTA – Expert

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Adopting blockchain for cross-border payments will help set the tone for the African Continental Free Trade Area.

Digital Encode Limited CTO Oluseyi Akindeinde said this at the Africa Tech Alliance Forum.

According to Akindeinde, the blockchain reduces the risk of corruption and transaction costs.

The CTO of Digital Encode, an information security and compliance management consultancy, cited an example of a pan-African payment and settlement system, which should facilitate the expected increase in cross-border payment volumes across the continent.

He added that the blockchain would allow peer-to-peer payments without an intermediary.

He said: “With this, participants will no longer need to convert local currencies into hard currencies, which then involved the funds leaving Africa to be converted before being returned to the recipient bank, which adds days to transaction time.

“In addition, compliance, legal and sanction checks are carried out instantly in the system. Almost instant payment process in 120 seconds.

Akindeinde said Africa’s central banks need to work in conjunction with PAPSS to provide a payment and settlement service that commercial banks, payment service providers and fintechs in the region can connect to as ” participants ”.

He said most trade settlements in Africa were usually done in foreign currencies and usually at foreign banks.

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