Kairos Capital CEO on Eco’s future & Africa's appetite for digital currencies

As digital currencies become more prevalent in Africa, the future of West Africa's proposed single currency, the Eco, is being called into question. Sam Chidoka, CEO of Kairos Capital, weighed in on the topic in a recent interview with CNBC Africa. Chidoka highlighted the implications of central banks in Africa launching their own digital currencies and how this trend could impact the Eco's proposed launch in 2027. Chidoka acknowledged the growing trend of central banks issuing digital currencies, emphasizing that many are now developing digital currencies that mirror their local currencies. He mentioned Nigeria's upcoming launch of the E-Naira as an example of this shift towards digitalization. While the Eco is set to debut in 2027, Chidoka stressed the importance of addressing the immediate need for digital currencies in the present. Regarding the potential for a digital version of the Eco, Chidoka expressed optimism, noting that aligning all countries and authorities in the region could lead to a digital format of the currency. He emphasized the benefits of having a digital currency within a sub-region, such as reducing transaction costs and enhancing trade. However, Chidoka also highlighted the challenges in the adoption of digital currencies, citing factors such as educational levels, internet penetration, and smartphone availability as areas that require further development. Despite these hurdles, he remained confident in the future proliferation of digital currencies. Turning to the Eco specifically, Chidoka discussed the need for aligning monetary policies across markets to facilitate its launch. He noted that while various economies in the sub-region face different challenges like inflation rates and currency instability, learning from other currency unions like the Eurozone could provide valuable insights. Chidoka emphasized the importance of cohesive policies and regional economic integration to strengthen the Eco and drive down transaction costs. In conclusion, Chidoka expressed optimism in the potential success of the Eco and the broader adoption of digital currencies in Africa. By fostering collaboration among countries, aligning monetary policies, and promoting economic integration, the region could see improved trade, enhanced cross-border transactions, and bolstered business activities.