This archive report was first published on 1 July 2019.
Facebook's Libra Cryptocurrency: A Threat to Africa's Digital Sovereignty ¶
Published on July 1, 2019
Facebook's plans to launch a new cryptocurrency, Libra, have sparked concerns among African governments and experts. The cryptocurrency, which is set to be released in 2020, is backed by a collection of low-volatility assets, including bank deposits and government securities in currencies from stable and reputable central banks.
However, critics argue that Libra poses a significant threat to Africa's digital sovereignty, with the potential to undermine the continent's economic and financial independence. The Libra Association, a governing body of 28 American and European companies, will have control over the cryptocurrency's policy and technical matters, raising concerns about the lack of African representation.
One of the main concerns is that Libra will give Facebook and its Libra Association control over the digital economy, allowing them to dictate the rules and decisions of the cryptocurrency. This could lead to a loss of control for African governments and central banks, as well as a dependence on foreign technology and money.
Experts warn that the introduction of Libra could have far-reaching consequences for Africa's digital economy, including a loss of sovereignty and a dependence on foreign powers. The continent's nascent digital economy is already built on foreign technology and capacity, and the introduction of Libra could exacerbate this dependence.
As the world transitions into the digital economy and digital currencies, Africa must be cautious not to cede control to foreign powers. The continent has a unique opportunity to develop its own digital economy, with its own currency and networks, backed by the resources of its own continent.
However, if Africa fails to take control of its digital economy, it risks being left behind in the digital age. The introduction of Libra and other digital currencies poses a significant threat to Africa's digital sovereignty, and the continent must take steps to protect its economic and financial independence.
