Can Bitcoin Free West Africa From CFA Franc Tyranny? | ICT Works
▻http://www.ictworks.org/2016/05/20/can-bitcoin-free-west-africa-from-cfa-franc-tyranny
Zero Cost of Coinage
One key issue is the requirement that the CFA Franc is printed in France and the African countries using the currency have to pay France for the printing services. Yet the Bitcoin payment system is free to use and open for anyone to use it. With Bitcoin technology, anyone can use the currency without requiring approval from any government payment processing services.
Flexible Monetary Value
The value of the CFA Franc is determined by France and has been devalued in 1994 at 50%, one French Franc, previously worth 50 FCFA became 100 FCFA (1). While the value of Bitcoin fluctuates, no one country manipulates it in order to control the economy of another country. Also, if Bitcoin is used as an immediate transfer value, vs. a store of wealth, the long-term exchange rate doesn’t matter.
Easier Intra-Africa Trade
The CFA Franc are emitted by three Central banks, the West African Central Bank (BCEAO), the Central Africa (BEAC) Bank and the Federal Islamic Republic of the Comoros Central Bank (BCC). Even-though they are technically the same Franc, there is no real convertibility between the three zones creating a trading fence between them. Bitcoin value is universal and anybody in the world could purchase goods from anyone without any intermediary.
Lower Forex Costs
The countries using the CFA Franc pay huge commissions disguised in the Operations accounts deposit to France for the convertibility of their currency. Indeed, France is the only country in the world, which guarantees to convert the CFA Franc in Euro (and therefore in most major currencies) and its monopoly creates hefty commissions while doing these operations. Bitcoin can allow money transfer between two remote locations instantly, with very little to no commissions. Bitcoin has the same value worldwide and does not need to be converted to fiat money.
No Operations Accounts
France has established a clearing house which forces the former African Colonies to deposit 50% of their currency with the French Central Bank. Whenever a former colony sells exporting goods on the international market, that country must keep 50% of the sales in what is called the operation accounts. Prior to 1973, all of these countries were depositing 100% of their transactions in these operations accounts. With Bitcoin there is no central bank and this constraint is eliminated.
