Kyle Sonlin CFA franc analysis
Kyle Sonlin (KyleSonlin) calls the CFA franc setup economic colonization for 14 African nations while France uses the Euro instead of the French dollar. He argues double-digit fees are forced by another country, blocking any fintech innovation on an externally imposed problem. Historical excuses like instability or poor monetary policy education might have made sense back then but those times are changing dramatically. Entities benefiting from this arrangement will need new business models and may lose leverage in these markets.
Transcript (en)
that there are 14 countries in Africa that use the French dollar as their national currency. And the French don't use the French dollar, they use the euro. And like, it's fascinating to think that there are so many countries that are, for lack of a better word, economically colonized. And, you know, historically, there were maybe some justifications for that in terms of the fact that these were unstable nations or maybe there was a lack of education around how to run successful monetary policy. And perhaps some of these countries really do benefit from having a peg to these dollars and things like that. But those times are changing dramatically and having to experience double-digit fees that is mandated. There's nothing that you can do to innovate. That's not just like the old guard bank that's just forcing you to do it and maybe a fintech company will come out and solve the problem. this is forced by the entire country by another country colonizing them so those countries that are the ones that are taking advantage i certainly think are are you know going to have to figure out a new business model for sure so some of those individuals there there are you know are going to lose leverage in those markets if you enjoyed this be sure to hit that like button and follow to stay up to date with what's going on in the world and everything else memes and markets peace
