Interstellar, a prominent deep-tech company and member of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has introduced a blockchain-powered solution, aimed at addressing currency inconvertibility, which costs Africa more than $5 billion a year.
For decades, Africa’s fragmented financial systems and reliance on hard currencies for intra-African trade have impeded growth, especially for small and medium-sized enterprises (SMEs) and informal traders. According to the African Export-Import Bank (Afreximbank), this challenge leads to an estimated $5 billion in losses every year due to foreign exchange costs, inefficiencies, and failed transactions.
The Pan-African Payment and Settlement System (PAPSS) collaborated with the new solution, the PAPSS African Currency Marketplace (PACM). Businesses throughout the continent can now conduct transactions directly in their local currencies without depending on the US dollar or other foreign currencies thanks to its smooth, real-time, peer-to-peer exchange of African currencies.
SiBAN president Obinna Iwuno, in a statement, said that this innovation is more than just a technical achievement, adding that it is an African-made solution to an African problem.
“The work of Interstellar is a prime example of how blockchain technology can be used to address practical problems. PACM creates previously unheard-of possibilities for intra-African trade by removing trade friction brought on by currency inconvertibility, Iwuno said.
Interstellar’s STARGATE platform, a blockchain-agnostic infrastructure designed to support safe and scalable financial applications, is the foundation of PACM. Interstellar’s innovation significantly lowers transaction costs, encourages financial inclusion, and strengthens economic integration throughout Africa by utilising permissioned blockchain technology.
This issue is directly addressed by Interstellar’s PACM, which removes middlemen and permits direct currency exchanges between the 19 African nations that are presently connected via PAPSS. The success of Interstellar demonstrates Nigeria’s expanding role in the global blockchain community. The business gains access to SiBAN’s collaborative innovation ecosystem, policy engagement, and advocacy as a member.
CEO of Interstellar, Ernest Mbenkum, added, “Blockchain is not just a technology; it is a catalyst for Africa’s economic renaissance. We are honored to contribute to SiBAN’s vision of a prosperous Africa, and we look forward to continued collaboration that unlocks the full potential of blockchain for Nigeria and beyond.
The Bantu blockchain network, a decentralised protocol created by Interstellar to satisfy the particular operational and regulatory requirements of African markets, serves as the foundation for PACM.
Users can trade without the customary delays or expenses imposed by legacy systems thanks to the Bantu network, which guarantees transactions are not only safe and compliant but also transparent and instantaneous. The African Continental Free Trade Area (AfCFTA), which seeks to establish a single, liberalised market for goods and services throughout Africa, is one example of a continental goal that this innovation supports.
SiBAN, the leading blockchain advocacy organisation in Nigeria, is still working to promote the creation, control, and responsible use of blockchain technology. To establish Nigeria as a regional centre for blockchain innovation, the association collaborates closely with regulators, the private sector, and government stakeholders.
“SiBAN is proud to support Interstellar in its mission to democratize access to financial services. PACM reflects the power of Nigerian innovation and showcases what’s possible when technology meets purpose,” Iwuno added.
To maximise the impact of initiatives like PACM, SiBAN is urging policymakers and regulators to provide an enabling environment for blockchain-driven solutions to thrive. This includes enacting supportive legislation, strengthening consumer protection, and incentivizing digital innovation across sectors. “With the right policy framework, Nigeria and Africa can lead the world in financial technology,” Iwuno added.
