Read on Twitter
"if China's digital currency DCEP gets significant traction on the African continent, the US will view this as a matter of national security" https://twitter.com/Travis_Kling/status/1316468012057161731
Nowadays, anything that is a threat to US hegemony is considered a matter of national security
Considering China's trade relations with African countries at retail and wholesale level, I wonder if China could insist on foreigners using DCEP exclusively for trade versus say the usual Mpesa/Bank - Wechat/Alipay payments integration
August 2020
"Several Kenyan financial institutions including Equity and Family Banks have already integrated Chinese fintech platforms such as WeChat pay and Alipay into their digital payment platforms"
"Several Kenyan financial institutions including Equity and Family Banks have already integrated Chinese fintech platforms such as WeChat pay and Alipay into their digital payment platforms"
"a key driver of the Sino-Kenya fintech cooperation is the bilateral trade that has grown exponentially over the past two decades"
"financial settlements for trade between Chinese and Kenyan entrepreneurs involve bank transfers which take time to complete."
"Chinese e-commerce platforms are already popular among Kenyan consumers, adding that the most convenient way to pay for goods from Chinese online platforms is through the use of Chinese fintech apps which provide real-time payments."
This is true of other African countries as well at least from my experience in Zambia ie shopping from China
"the use of fintech will permit seamless digital financial transactions between the two regions hence building trust among entrepreneurs."
"The popularity of Wechat Pay and Alipay has now increased among Kenyans especially those who source goods from China,"
"Merchants from the east Africa's largest economy have also discovered that by embedding the Chinese fintechs as a payment option, it will help to break the cultural and language barriers with Chinese clients"
So perhaps the ongoing talks to have African Central banks hold RMB Yuan reserves may end up being about Afro Central Banks holding DCEP reserves for their citizens for trade?
"14 African nations discussed the possibility of adopting the renminbi as part of a reserve currency management initiative by Central banks in the region"
Kenya is considering the adoption of the Chinese Yuan as a reserve currency https://twitter.com/pesa_africa/status/1006773641663733760?s=20
Check out this thread on Africa's payment transaction flows by SWIFT https://twitter.com/pesa_africa/status/1287809241194037248?s=20
