1/12 Hi!👋 - #Bitcoin for ECCOWAS
In Sub-Sahara Africa, a currency union exists between Mali🇲🇱, Benin🇧🇯, Burkina Faso🇧🇫, Ivory Coast🇨🇮, Guinea-Bissau🇬🇼, Niger🇳🇪, Senegal🇸🇳 & Togo🇹🇬 - Quick Thread 🧵
In Sub-Sahara Africa, a currency union exists between Mali🇲🇱, Benin🇧🇯, Burkina Faso🇧🇫, Ivory Coast🇨🇮, Guinea-Bissau🇬🇼, Niger🇳🇪, Senegal🇸🇳 & Togo🇹🇬 - Quick Thread 🧵
2/12
The currency these countries share is the 'CFA-Franc' (XOF). The XOF is currently pegged at 655 XOF to 1 €. After Bretton Woods, the currency was introduced for the first time.
The currency these countries share is the 'CFA-Franc' (XOF). The XOF is currently pegged at 655 XOF to 1 €. After Bretton Woods, the currency was introduced for the first time.
3/12
While in 1945 1 CFA-Franc was equal in value to 1,70 FF (French Franc) it was merely equal to 0,01 FF in 2002. Cause: Devaluation of the FF by the French government.🇫🇷 The XOF lost 17000% of its value in 52 years.
While in 1945 1 CFA-Franc was equal in value to 1,70 FF (French Franc) it was merely equal to 0,01 FF in 2002. Cause: Devaluation of the FF by the French government.🇫🇷 The XOF lost 17000% of its value in 52 years.
4/12
Over the last 10 years, these countries have seen a steep increase in migration to western nations. Political instability, wars, corruption and the potential for a better life elsewhere are causes for this.
Over the last 10 years, these countries have seen a steep increase in migration to western nations. Political instability, wars, corruption and the potential for a better life elsewhere are causes for this.
5/12
The chart shows the collective amount of remittance inflows for the aforementioned 8 countries.
In 2019 5,408 Million USD were sent in remittances from outside these countries.
The chart shows the collective amount of remittance inflows for the aforementioned 8 countries.
In 2019 5,408 Million USD were sent in remittances from outside these countries.
6/12
Estimates for 2020 show a minor decrease of 5,408 Million due to the pandemic. Note: This does not account for remittances sent between the countries. I assume this amount to be negligible.
Estimates for 2020 show a minor decrease of 5,408 Million due to the pandemic. Note: This does not account for remittances sent between the countries. I assume this amount to be negligible.
7/12
5,4 Million USD make up for 3,60 % of collective GDP (approx. 150 Billion USD). While this number certainly is not as high as in El Salvador🇸🇻 (20% of GDP are remittance inflows) the absolute numbers are staggering.
5,4 Million USD make up for 3,60 % of collective GDP (approx. 150 Billion USD). While this number certainly is not as high as in El Salvador🇸🇻 (20% of GDP are remittance inflows) the absolute numbers are staggering.
8/12
Average remittance fees charged by common service providers are 8%. 453 Million USD per year (!!!) are paid in fees to send remittance payments. #Bitcoin fixes this! 1,25 Million USD of potential volume for the lightning network - daily.
Average remittance fees charged by common service providers are 8%. 453 Million USD per year (!!!) are paid in fees to send remittance payments. #Bitcoin fixes this! 1,25 Million USD of potential volume for the lightning network - daily.
9/12
Internet Access and Smartphones are widely spread.
#Bitcoin & #Lightning⚡️ would change the lives of around 130 million people. Enormous.
This needs to happen. It will happen. These countries, among many others, will leapfrog entire decades of financial development. 🐸
Internet Access and Smartphones are widely spread.
#Bitcoin & #Lightning⚡️ would change the lives of around 130 million people. Enormous.
This needs to happen. It will happen. These countries, among many others, will leapfrog entire decades of financial development. 🐸
10/12
Currently, there is no exchange that offers a BTC/XOF currency pair. Volume too low. People access #bitcoin via #localbitcoins or #paxful.
I have professional ties to Mali 🇲🇱 and a network of young, highly educated colleagues, who caught the #bitcoin bug.
Currently, there is no exchange that offers a BTC/XOF currency pair. Volume too low. People access #bitcoin via #localbitcoins or #paxful.
I have professional ties to Mali 🇲🇱 and a network of young, highly educated colleagues, who caught the #bitcoin bug.
11/12
Sending permissionless, instant, free payments globally is magic to us.
"All" that is needed is an exchange as well as a lightning wallet able to hold digital XOF. How do we get there?
Sending permissionless, instant, free payments globally is magic to us.
"All" that is needed is an exchange as well as a lightning wallet able to hold digital XOF. How do we get there?
12/12
Thank you @jackmallers for the inspiration!
cc: @raypaxful @diopfode @chakaneld @PeterMcCormack @PrestonPysh
Thank you @jackmallers for the inspiration!
cc: @raypaxful @diopfode @chakaneld @PeterMcCormack @PrestonPysh
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