In a continent where governments still fall via coups and revolutions, for instance, the wave of the Arab Spring and the recent coup against Robert Mugabe of Zimbabwe, financial stability of economies in Africa is an oasis enjoyed by a few countries. Currencies have been known to lose value in a whiff and people’s savings wiped in the wink of an eye.
Cryptocurrencies do offer a haven as an investment haven in such cases but most cryptocurrencies that we use today such as Bitcoin and Ether have no underlying assets to back them. As a result, speculation and investment have been primary use cases, as with a potential for substantial appreciation many people have acquired these coins hoping to sell them at a higher price later.
This is evident in the collapse in prices and market capitalization of cryptocurrencies in late 2018 as well as the emergence of scam ICOs that took investors’ money and ran exposed problems buried within the DNA of these coins and tokens.
On the contrary, the Libra coin will be backed by a bevy of assets which will be a collection of low-volatility assets, including bank deposits and government securities in currencies from stable and reputable central banks thereby ensuring stability.
Extracted from an article on medium https://medium.com/swlh/how-facebooks-libra-is-going-to-disrupt-africa-6db654c2787 , I think its worth reading.
Do you agree that Libra is going to disrupt African economies?
Topic: How Facebook’s Libra is going to disrupt Africa (Read 123 times)
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