Title: Potential of Bitcoin to Address West Africa’s Challenges: Examining French Influence and Fighting Corruption
Introduction
The recent coup in Niger reveals the ongoing challenges faced in West Africa, particularly in Francophone Africa. French and US involvement in the region was initially aimed at promoting economic development and combating corruption. However, as the Niger Coup escalates, it is essential to evaluate our military involvement and consider alternative solutions. Can Bitcoin achieve what decades of foreign intervention have failed to accomplish?
French Control and Exploitation
France’s control over its former colonies through the CFA (African Financial Community) currency has been a contentious issue. By devaluing the CFA franc against the French Franc and now the Euro, France enhances its purchasing power for African raw materials while selling finished goods at inflated prices. Consequently, the purchasing power of impoverished nations is diminished. This exploitation has drawn criticism, with Italy’s prime minister suggesting that France’s actions drive economic migrants to risk dangerous journeys to Europe.
Limited Progress and Potential of Bitcoin
Countries like the Central African Republic initially embraced Bitcoin as legal tender, propelled by its decentralized nature. However, setbacks such as limited internet access led to a retraction. The existence of the Central African Franc, a dominant currency since French colonial rule, has facilitated better trade within West African countries, offering relative stability amidst the volatility of other African currencies. Despite this, many nations remain trapped as exporters of raw materials, making them susceptible to global economic fluctuations, such as plummeting oil prices.
Examining Corruption and Bitcoin’s Role
Corruption remains a significant issue in Africa, with politicians embezzling public funds for personal gain. Existing safeguards have proven ineffective, allowing illicit movement of funds to secret offshore bank accounts. Bitcoin’s potential in combating corruption lies in its transparent nature. If a country adopts Bitcoin as its official currency for public finances, all transactions from the government wallet are recorded in a public ledger. This transparency empowers the press, opposition leaders, and citizens to monitor and expose embezzlement and corruption in real-time.
However, Bitcoin’s transparency can also be exploited by unscrupulous public officials who might target individuals or groups for bribery or extortion, leveraging knowledge of their Bitcoin balance.
Fair Free Trade and Bitcoin’s Impact
West Africa’s failure to capitalize on its abundant natural resources, such as gold, oil, diamonds, and uranium, inhibits sustainable development. Corruption, heavy regulations, and licensing requirements act as barriers to business growth. Moreover, the French manipulation of the CFA franc presents a major obstacle. By regularly devaluing the currency, France gains a trade advantage. Bitcoin provides a solution by circumventing the need for intermediaries like the French central bank. It enables direct international transactions with low transaction costs, allowing West African nations to engage in global commerce independently. They can purchase machinery and finished goods from any country without multiple currency exchanges. Additionally, Bitcoin facilitates the import of necessary equipment to develop local infrastructure and industries, such as mining equipment, oil refining machinery, and manufacturing tools.
Conclusion
The recent events in Niger bring attention to the challenges faced in West Africa, particularly the influence exerted by France and issues of corruption. Bitcoin presents a potential solution, offering transparency to combat corruption and empowering West African nations to engage in fair and independent trade. As we reassess our role in the region, it is crucial to consider the untapped potential of digital currencies like Bitcoin to address these longstanding issues.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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