The Pan-African Payment and Settlement System has officially launched a currency marketplace aimed at reducing reliance on the U.S. dollar for intra-African trade.

No Hard Currency Involved

The Pan-African Payment and Settlement System (PAPSS) has launched the African Currency Marketplace, a major step toward reducing reliance on the U.S. dollar for intra-African trade settlements. This initiative, a collaboration between Afreximbank, the African Union Commission, and the AfCFTA Secretariat, aims to streamline cross-border payments using local currencies, signifying a crucial move in the continent’s financial integration.

According to a report, the platform enables transactions to be initiated and concluded entirely in local currencies, eliminating the need for foreign currency conversion. PAPSS CEO Mike Ogbalu stated, “no hard currency is involved” in these settlements. The system operates in real-time, 24/7, ensuring transactions are finalized within minutes. It leverages an integrated network of 16 central banks, over 150 commercial banks, and 14 national switches.

This efficiency is particularly vital for large African companies, such as airlines and industrial groups, which have faced significant challenges in repatriating funds due to exchange restrictions and currency depreciation. Ogbalu highlighted that over $2 billion is currently “trapped” in African countries where airlines operate, underscoring the urgent need for such a solution.

The African Currency Marketplace aims to reduce payment frictions, enhance operational security, and bolster the monetary sovereignty of African states. To achieve this, PAPSS has partnered with Interstellar, the first pan-African blockchain infrastructure provider, founded by Ernest Mbenkum. Interstellar utilizes the Bantu network, a unique African blockchain that supports a comprehensive Know Your Customer (KYC) system and manages up to 43 African currencies.

Since its inception in the West African monetary zone, PAPSS has expanded its network to 16 countries, with plans for continent-wide coverage. The launch of the African Currency Marketplace comes at a crucial time, coinciding with the exponential growth of e-commerce across Africa.

However, this launch is also likely to irk U.S. President Donald Trump, who previously threatened to punish countries involved in de-dollarization efforts. As reported by Bitcoin.com News, Trump vowed to block access to the U.S. and impose 100% tariffs on countries found “wanting.” These threats prompted South Africa, a key member of BRICS, to issue a statement denying that it was actively encouraging some countries to abandon the dollar.

Despite these U.S. threats, PAPSS continues to advance steps that will enable African traders to use their respective local currencies for cross-border transactions. Rather than competing with existing financial players, the African currency marketplace initiative seeks to collaborate with banks, fintechs, and regulators to create a fully integrated African monetary market.