Trapeace Holdings, in partnership with a Korean-based development team and Singapore-based ICO (Initial Coin Offering) marketing firm Cornet PTE LTD, intend to develop and launch a crypto-currency for exclusive use in Africa. The offering is scheduled to be launched towards the end of 2018.
The partners plan to create the Africa Blockchain Foundation which will ultimately develop and launch the Africa Master Coin.
The crypto-currency is based on the use of tokens that are linked to various' African countries, which, according to Trapeace Holdings, means it is similar to regular currencies - but with numerous benefits for companies, investors and end-users.
The tokens are fixed at a constant value to local currencies.
Trapeace said the idea is to create the opportunity of a regular cryptocurrency (the publicly traded Africa Master Coin) with all its benefits and potential risks, but also allow for a stable digital currency solution (the privately traded AMC tokens for each country) which will offer stability as well as complete mobility freedom.
Trade will be either through the publicly-traded coin itself by making direct payments or using the privately-traded tokens.
"In each country we will negotiate and sign local retail partners that will accept the private tokens in exchange for value (i.e store credit, payment for goods/services etc), the tokens that these retail partners receive will then be bought back by the local exchange in that country fulfilling the buy back guarantee on the tokens.
Alternatively the retailers can convert the tokens back in the publicly traded coin (Africa Master Coin) and use the coin to pay for restocks or liquidate the coin and then use the fiat currency for payments," Trapeace added.
George Gordon, Director of Trapeace and board member of African Blockchain Association, said that once launched, the Africa Master Coin will enable more efficient foreign investment from overseas as well as faster and easier trade within Africa.
"Many African companies operate across borders within the continent and paying suppliers is known to be a cumbersome process. A uniquely African crypto-currency will greatly improve cross-border payments between African countries. Our goal is to make the Africa Master Coin as accessible and usable as possible," added Gordon.
He said that currently, the partners are not concerned about the impact of regulators that remain sceptical of crypto-currencies and continue to warn citizens against using them.
"Currently there is no concern as we aim to potentially work together with regulatory bodies in the different African countries in order to create a regulatory framework for crypto-currencies that is beneficial to the public and government.
In addition by offering fixed value private tokens for each country and having partners like retail stores and supermarkets will offer peace of mind to customers knowing that by using the crypto token they are guaranteed value exchange at accepting retail stores and supermarkets; in addition the retail and supermarket partners will be happy to accept the tokens as we will offer a buyback guarantee on the tokens held. The above is just an example however the aim is to expand into having partners into all consumer goods."
However, Gordon acknowledged that the recent BTC Global Bitcoin scam in South Africa has shed a bad light on crypto-currencies and the industry as a whole.