Three African nations, including Cameroon, the Republic of the Congo, and the Democratic Republic of the Congo (DRC), are considering implementing crypto and blockchain technologies backed by The Open Network (TON). Cameroon is also exploring releasing a sovereign cryptocurrency based on this blockchain network.

This article captures the key nuances of this development and its impact on the crypto and blockchain space.

The Development

Africa has one of the highest rates of cryptocurrency acceptance in the world. This tendency can extend if new initiatives in Africa go from the design phase to a commercial introduction. This drives further growth of the existing cryptocurrency exchange.

Cameroon, the Democratic Republic of the Congo (DRC), and the Republic of the Congo all aim to use crypto and blockchain technology alternatives to enhance economic development.

The three nations recently issued separate statements to the press expressing their early observations on crypto and where they want to incorporate it within their economies. The governments stated they are in talks with TON about launching their maiden crypto venture.

Financial Democratization

There are two types of stable digital assets: CBDCs, which are generally used for interbank payments, and consumer mass market stable currencies, like USDT and USDC, which have been dollar-pegged.

However, there is another hybrid method in which geographically suitable and regionally relevant stable currencies can exist. It is the path that these nations are looking to follow.

It is worth mentioning these nations’ cryptocurrency implementation strategies are not headed by central banks. The Ministry of Posts and Telecommunications is driving Cameroon’s move.

In the Democratic Republic of the Congo and the Republic of the Congo, the Ministry of Posts, Telecommunications, and Digital Economy of the respective countries is in charge.

CAEMC

It is vital to note that Cameroon and the Republic of the Congo are both members of the Central African Economic and Monetary Community (CAEMC), a six-country union with a single currency and central bank. The Central African CFA franc, administered by the Bank of Central African States, is in use by CAEMC nations. The Central African Republic, Chad, Equatorial Guinea, and Gabon are the other CAEMC members. The Congolese franc, issued by the Central Bank of the Congo, is in use in the Democratic Republic of the Congo.

The Intentions

The aim for Cameroon, the Democratic Republic of the Congo, and the Republic of the Congo is to implement a blockchain-based system that is both economical for operations and fairly reachable. TON provides an edge in this aspect due to its emphasis on collaboration with Telegram and its dissemination services.

Early signs suggest that coalition crypto acceptance in the nations will also include connectivity with the Telegram messenger. It will facilitate symmetric encryption-based P2P payments through a chatbot in the messaging platform.

It is similar to how WhatsApp users in Brazil and India can transfer funds using the chat service. However, WhatsApp’s P2P payments functionality presently accepts fiat currency only.

Standpoint

The press release by Minette Libom Li Likeng, the Minister of Posts and Telecommunications for Cameroon, states, “This marks a step-change in the economic destiny of Cameroon, as we look forward to a more digitally-enabled future economy. By collaborating with TON to develop a viable digital financial model for our nation, we are proudly leading the way in bringing access to modern financial instruments to all.”

The press release by DRC states, “Just like the internet, which was little known at the beginning but has now become common, it seems quite obvious that the world will evolve in the direction of greater consolidation of this type of currency. It is in our interest to reflect on the possibility for the country to develop this type of currency and to create a favorable legal and financial environment for its promotion.”

The press release by the Republic of Congo states, “…we have reached an agreement with the representatives of TON, a blockchain originally designed by the founders of Telegram Messenger and now independent. Based on careful evaluation, TON’s technologies, products, and stage of development provide us with the greatest potential to achieve our ambitions.”

This step by these nations is a way forward for the already growing crypto scene in Africa. El Salvador became the first country to accept bitcoin payments in 2021. Nigeria launched its CBDC, eNaira, and became the first African country to do it.

Numerous service providers like OKX are already working in this space. The people’s affinity toward these decentralized currencies will only escalate further in the days to come. However, whether these new currencies will be interchangeable with the existing products is still unclear.