ECOWAS announces ECO - My Opinion - Sinha Santos, Founder Oix.Global

Just a few days ago, I was involved in an academic discussion about a unified African Currency, and today, I come across the news that ECOWAS has decided to come up with a unified currency called ECO. ECOWAS, or The Economic Community of West African States, for those of you not aware of African Politics, is an economic union of fifteen countries located in West Africa. Largest of these nations in terms of GDP is Nigeria and the smallest Gambia.
Some of these countries already have a common currency called West African CFA franc. They are of the same denomination as the Central African CFA Franc, but different.
This, you can find out anywhere, so I will come to my analysis. My first problem with the currency is its model. Euro is problematic, to say the least. The multi-year eurozone debt crisis is a case and points for bad implementation of a single currency. Germany and France have been shouldering the Euro for a long time but is Nigeria alone ready to shoulder the burden?
Will blockchain help? This is the very next question that comes to mind. The answer is a resounding No. There is no scenario in which blockchain will help.
The only way I see this currency working is if 14 nations agree to give their economic reigns to Nigeria. If Nigeria is given the power to lead the currency, it might become a reality.
I do see a case for Blockchain here, though. In a multi-country scenario like ECOWAS, a trustless environment like blockchain will be a boon for cross-border trade.
I do know that African nations have low digital penetration, and digital payments are still too few to make any real impact. B2B transactions face a heavy constraint due to weak currencies and lack of trust. Taking a Blockchain based B2B platform to manage cross-border trade will bring in greater transparency and trust. This is the step that should be taken before the launch of the currency.
I might travel to Arica to showcase the capabilities of the OiX industrial exchange to the powers to be and will keep you posted on how things move forward.

ECOWAS announces ECO - My Opinion - Sinha Santos, Founder Oix.Global
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