Dialogue with cryptocurrency experts: Why are African countries rushing to issue digital currencies?

Following Tunisia and Senegal, two more West African countries - Benin and Togo - have successfully issued cryptocurrencies controlled by the central bank.

George Sagala, president of eCurrency, announced the news in an exclusive interview with CoinIdol.com.

Recently, two African countries have successfully issued local digital currencies. Starting with Tunisia and then Senegal, four African countries have issued local digital currencies. In the process of issuing cryptocurrencies, these four countries have established cooperative relations with the digital currency research and development institution eCurrency.

Therefore, Coinidol.com interviewed Sagala, President of eCurrency. He has worked for IBM, Warid Telecom (communications company) and MTN. We discussed the development of the digital currency world and the issue of local digital currencies issued by the above countries.

CoinIdol (CI): Can you briefly talk about what eCurrency does? What is the connection between eCurrency and digital currency? How can I become a member of eCurrency?

George Sagala (GS): eCurrency is able to establish a connection between the banking sector, fiat currency issuers (central banks) and cryptocurrencies, allowing these three parties to conduct transactions together. eCurrency mainly helps central banks issue digital fiat currencies. In fact, everyone in the world can use our technology, that is, anyone can be a member of eCurrency.

CI: Both Tunisia and Senegal have issued digital fiat currencies that have the same status as their national currencies. What do you think of this phenomenon?

GS: Most African governments are skeptical about this technology because they worry that the investment costs are too high and local technical services are relatively scarce. Tunisia and Senegal have taken a brave step, which is enough to change the world status of digital currency.

CI: Based on your personal observations, what is the current situation of these countries that have issued digital currencies?

GS: Senegal has only recently issued a digital currency, but Tunisia has successfully taken this step since 2015. There are no abnormalities in the Tunisian financial sector, which means that this currency is developing steadily.

CI: Do you think other countries will eventually adopt cryptocurrencies and recognize them as legal tender?

GS: Absolutely. Africa is very receptive to currency technology. Most West African countries, including Benin and Togo, are planning to issue their own cryptocurrencies.

CI: What are the main difficulties in developing digital currency projects in African countries?

GS: To launch a digital currency project, we must first gain the trust of the public, and secondly, ensure the security of the project to prevent the theft of funds and personal information.

CI: Taking Senegal as an example, what are the main differences between a national blockchain-based cryptocurrency and ordinary cryptocurrencies such as Bitcoin or ETH?

GS: Senegal’s cryptocurrency is an independent entity from Bitcoin or ETH. The only thing they have in common is that they both use blockchain technology. Bitcoin is controlled by Bitcoin Core, while Senegal’s digital currency is regulated by the country’s central bank.

CI: Are there any risks in using digital currency?

GS: Currently, blockchain is the most secure bookkeeping technology. Of course, I am not saying that blockchain cannot be attacked, but compared with traditional systems, blockchain is a more reliable and lower-cost option.

CI: The African continent lags behind other countries in the world in many aspects. What kind of changes can the popularization of digital currency bring to Africa?

GS: Digital currency is only one factor that will help Africa develop. Development requires a specific infrastructure and a rational political environment, and financial technology services can only play a supporting role.

CI: Are there any flaws in this digital fiat currency?

GS: The Internet and electricity are the basic prerequisites for the operation of digital legal tender. In addition, every citizen can use this currency freely. I dare say that the operation of digital legal tender is the same as that of traditional legal tender, without any defects.

CI: What is the regulatory model for digital legal tender?

GS: The specific situation depends on the constitution of each country. Digital legal tender is regulated by the central bank of the country.

CI: How can digital fiat currency ensure 24-hour uninterrupted operation?

GS: Just like legal tender, there is a group of professionals who will monitor the status of national digital currency in real time. In fact, any tangible asset needs to be supervised by people.