Tackling Paperwork Overload: Africa's Blockchain Initiative Lowers Expenses and Enhances Trade
- AfCFTA and IOTA launch blockchain initiative to digitize trade with stablecoins, targeting $70B economic value and doubling intra-African commerce by 2035. - ADAPT program uses USDT and blockchain to cut border clearance times by 50%, with Kenya/Rwanda pilots showing 60% paperwork reduction and $400/month cost savings for exporters. - Stablecoins enable instant cross-border settlements while asset tokenization helps miners secure half-cost financing via USDT, bypassing traditional banking bottlenecks. -
The African Continental Free Trade Area (AfCFTA) and the
The ADAPT framework is built to tackle persistent inefficiencies in African trade, where outdated manual systems lead to $25 billion in yearly transaction costs and widespread document fraud. Early trials in Kenya and Rwanda have already shown measurable improvements, including a 60% drop in paperwork for freight handlers and a reduction in border wait times from six hours to just 30 minutes
This initiative positions stablecoins as the core mechanism for cross-border payments, with USDT enabling fast and affordable transactions. IOTA’s founder Dominik Schiener pointed out that the project’s impact extends beyond payments, allowing for the tokenization of physical goods such as commodities and essential minerals, thereby broadening access to trade financing. “We can enable a miner in Rwanda to obtain onchain funding at half the usual cost, with near-instant payment via USDT,” he explained,
Recent regulatory shifts in major markets like the U.S. and Hong Kong have paved the way for stablecoin growth, encouraging African countries to leapfrog outdated financial systems. The ADAPT rollout will start in Kenya, Ghana, and a North African nation, with plans to expand to all 55 AfCFTA members by 2035
While the outlook is positive, there are still hurdles to overcome. Aligning regulations across all 55 countries and ensuring robust digital infrastructure are essential for success. The IOTA blog
AfCFTA estimates that full deployment could double trade within Africa, but reaching this target will require addressing resistance from established businesses and guaranteeing fair access for small and medium-sized enterprises. As Schiener remarked, “This is how we move beyond crypto’s cycles of hype and downturns to anchor genuine value in tangible assets”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
APAC Leads Global AI Growth with Emphasis on Human-Focused Approaches
- APAC leads global AI adoption with 26% of firms investing $400k-$500k in generative AI, driven by CEO-led strategies (33% APAC vs 18% North America). - 91% APAC employees receive AI training, supporting rapid deployment as energy management markets grow from $56B to $219B by 2034 via AI analytics and blockchain. - Pegasystems and Ambarella showcase AI integration in enterprise automation and computer vision, while SoundHound AI leverages $269M liquidity for strategic acquisitions. - Challenges persist fo
Republican Party Splits and Inflation Issues Created Internally Complicate Trump’s Plans for a Second Term
- Trump's second-term agenda faces GOP internal divisions and affordability crises as inflation and tariff policies strain public support. - Republican lawmakers like Rep. Massie challenge Trump's Epstein file stance, exposing party fractures despite official "America First" alignment. - Tariff rollbacks on staples address self-inflicted inflation but fail to resolve core affordability concerns undermining Trump's economic legacy. - Constitutional term limits and waning influence in Trump's "lame duck" per
Dogecoin News Today: Institutional Altcoin ETFs Resist Crypto Market Downturn
- Grayscale and VanEck launch Dogecoin/Solana ETFs as crypto markets decline, defying broader outflows. - U.S. spot Bitcoin ETFs see $870M outflows; Ethereum ETFs lose $259.7M amid third-week withdrawal streak. - Institutional altcoin ETFs gain traction with $550M+ assets, signaling growing crypto legitimacy in portfolios. - Ethereum's 3.6M token treasury and Fusaka upgrade optimism contrast with 4% ETF outflows of AUM. - Persistent retail caution contrasts with institutional adoption, as crypto's traditio
Bitcoin News Update: Blockchain.com’s Co-CEOs Steer Through Crypto Market Fluctuations as Company Relocates Headquarters to Texas
- Blockchain.com appoints Lane Kasselman as co-CEO alongside Peter Smith, adopting a dual leadership model to enhance operational efficiency during transition. - The firm relocates its U.S. headquarters to Dallas, Texas, leveraging the state's tax incentives, regulatory flexibility, and proximity to the Texas Stock Exchange. - This move aligns with broader corporate trends in Texas, as companies like Coinbase and McKesson shift operations to capitalize on business-friendly policies and innovation hubs. - T
Trending news
MoreCrypto prices
More
