The adoption of Bitcoin in Africa hampered the EAC’s unified currency program

nRunaway Comment: The economies of African countries have always lagged behind, and the devaluation of the national currency and the economic downturn made the situation even worse. As a result, the East African Community, an intergovernmental organization of six East African central banks, plans to create a unified currency. However, the popularity of cryptocurrencies such as Bitcoin poses new challenges for this program. Therefore, the current central banks are also considering what kind of policy on cryptocurrency.n
nTranslation: Annie_Xun
Due to the economic downturn and the devaluation of the national currency, the East African Community (EAC), an intergovernmental organization of six East African central banks, plans to adopt a common currency. However, the prevalence of Bitcoin and other digital currencies has hampered East African Central Bank plans to create a single EAC currency.n
The founders of Bitcoin have different goals than EAC membersn
Last October in October reports that Bank of Tanzania is increasingly worried about East African citizens investing and using bitcoin. Benno Ndulu, BOT president, noticed bitcoin’s rise, saying “the central bank is now exploring whether the BOT should allow, regulate bitcoin or prohibit it.” This week, the East African media Daily News interviewed BOT and wanted to determine how Bitcoin affected the bank’s plan to launch a single currency. The common currency will be considered the legal tender of Burundi, Rwanda, Tanzania, Kenya, Uganda and South Sudan.n

Bernard Dadi, Head of National Payment Systems at BOT, revealed that EAC countries are still creating a common currency, but digital currency poses new challenges.n
n”The goal of Bitcoin founders is different from the goal of creating a single currency in the member states of the Community, and we said that the process of creating a single currency is still underway and there are already challenges in considering Bitcoin growth.”n
EAC member countries studying digital currencies can they decide whether to allow, regulate, or prohibit themn
According to Dadi, BOT has partnered with cryptocurrency experts in the United Kingdom to attend a digital currency seminar. BOT management and senior staff are still in the process of determining whether to allow the use of virtual currency based on the conclusions of the seminar. Dadi details bitcoin warnings issued by EAC member states, and recently Kenya and the Tanzanian central bank also warned retail investors.n
n”People have been wary of bitcoin not only in Kenya, South Africa, Swaziland, Namibia, Uganda and other African countries.”n

East African bitcoin usage continues to grow, only deviating from the EAC’s unified monetary targetn
EAC member states believe trading heats in digital currencies such as bitcoin add to the difficulty of a unified currency plan. Patrick Njoroge, governor of Kenya’s central bank, said that the economy of the EAC countries has been somewhat improved by the intergovernmental organization of the six nations. The London School of Economics said bilateral trade relations have started to improve after the EAC coalition was created. However, alternative currencies such as Bitcoin lead citizens in the other direction, whereas EAC believes this approach is not conducive to the implementation of a unified monetary plan.n

Bernard Dadin
At the same time, Google Trends shows that the usage of bitcoin in these six EAC countries is increasing. The popularity of this decentralized currency has risen in Africa, especially in Uganda, Kenya and Tanzania. Bitcoin enthusiasts are using localbitcoins, Remitano, Bitpesa, Xapo and other exchanges. Localbitcoins has also set a record high for trading in the EAC over the past few months.n

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