Africa Does The Unexpected! Ends The US Dollar With One Move | Unveils A NEW Currency System
Africa Does The Unexpected! Ends The US Dollar With One Move | Unveils A NEW Currency System
Tech Revolution: 10-24-2023
In the bustling heart of Africa, change is happening, that no one expected. Meet PAPSS - the Pan-African Payment and Settlement System.
As cities buzz with trade and streets come alive with commerce, PAPSS is emerging as the digital backbone of it all. It's the bridge connecting countries like Ghana, Nigeria, The Gambia, and Liberia.
Before, cross-border transactions were tangled in delays. Picture this: a business in Nigeria wanted to pay a supplier in Ghana. They'd usually navigate a maze of foreign currencies and long waits. But with PAPSS, it's like buying from your next-door neighbor. Payments are instant and in local currencies, simplifying trade for everyone.
Businesses, from local shops to large corporations, are all feeling the shift. It's not just about speed; it's about connecting people, businesses, and economies.
For many, PAPSS isn't just a system; it's the future unfolding before their eyes. But as we look to the horizon, we find this isn't the first time Africa has tried to weave its economies together.
So, what makes PAPSS stand out from what came before?"
There was once a dominant player on the scene: SWIFT. If you've ever done an international transfer, chances are, you've brushed up against it. SWIFT was the go-to for cross-border transactions.
But it had its challenges. Imagine sending money from one African nation to another, but having that payment take a scenic route via banks outside the continent, racking up fees and wasting time along the way.
For instance, an entrepreneur in Ethiopia wanting to purchase goods from Ghana might find their payment first by traveling to the US, then back to Africa. When we talk about moving money in Africa's older systems, it is like having a big leak in your wallet.
Every year, this leak cost Africa a massive $5 billion.
Think about all the projects and investments that money could have supported! And if you sent money, you'd need a lot of patience. Why? Because sending it could be as quick as 2 days or as slow as 2 weeks.
It's like waiting for a letter that might take ages to arrive. In other words, this detour wasn't just longer; it was pricier. It's been estimated that such systems cost Africa over $5 billion annually, with transactions taking anywhere from 2 to 14 days.
And here's another staggering fact: a whopping 80% of transactions starting in Africa but aimed elsewhere, especially within Africa, touched down in the United States. Imagine you wanted to give a gift to your neighbor, but instead of handing it directly, you first sent it to a friend miles away, then that friend sends it to another friend, and only then does it reach your neighbor.
Then, instead of coming straight back to Africa, a lot of this money went on another trip, visiting places like Asia or Europe. In fact, of all the money being sent around, only 17% made its way straight back home to Africa."
This heavy reliance on third-party currencies like the US dollar or the euro wasn't just inefficient; it shook Africa's foreign exchange market to its core, often throwing a wrench into the manufacturing sector.
But PAPSS promises a different narrative. With PAPSS, transactions are direct, simple, and efficient. It's like replacing a winding road with a straight highway. The savings are clear, and the impact is felt from local markets to boardrooms.
Businesses now have more control over their transactions, fostering trust and reliability in the system. By bridging gaps and breaking down barriers, PAPSS is leading a financial revolution, signaling the end of an era dominated by external systems.
It’s ushering in a time where Africa holds the reins to its financial destiny." Beyond the immediate improvements, PAPSS has its eyes set on an ambitious goal. Today, while PAPSS operates using dollar exchange rates, its trajectory is far more innovative.
Oramah, whose institution backs the system, highlighted an evolving vision. The future of PAPSS is one where Africa's 42 distinct currencies can freely convert amongst themselves. To sidestep the historical over-reliance on global heavyweight currencies, carving out a space for Africa's currencies to interact directly.
'What we are doing is to domesticate intra-African payments,' Oramah asserts. This statement is profound, underscoring a shift from external reliance to internal strength and interconnection.
PAPSS isn't just about efficiency; it's a statement about Africa's financial independence and future." As streets buzz and markets hum, the silent revolution of PAPSS continues to make waves. Ground realities are shifting, and businesses are taking note.
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