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AfCFTA and IOTA Launch Stablecoin Trade Initiative in Africa

The ADAPT program aims to modernize cross-border trade in Kenya, Ghana, and another African country, with plans to reach all 55 AfCFTA members by 2035, leveraging stablecoins for instant settlements.

IOTA

Summary

The AfCFTA Secretariat and the IOTA Foundation have launched the ADAPT initiative, which uses stablecoin-based settlements to modernize Africa’s cross-border trade. The program will start in Kenya, Ghana, and another country, with plans to reach all 55 AfCFTA members by 2035, potentially unlocking $70 billion in trade value and cutting costs and delays.

Terms & Concepts
  • AfCFTA: African Continental Free Trade Area, a trade agreement among 55 African countries aimed at creating a single continental market.
  • Stablecoin: A type of cryptocurrency whose value is pegged to a stable asset, such as the US dollar, to reduce volatility.
  • IOTA Foundation: A non-profit organization promoting blockchain and distributed ledger technologies, known for developing the IOTA network.