Another Crypto Currency For The Unbanked?
What is AmbaCoin? AmbaCoin (AMBA) is a new sovereign cryptocurrency which has been launched by a separatist government in Cameroon’s semi-autonomous English-speaking southern region of Ambazonia. More than 20,000 AMBA tokens have been bought out of a total supply of 100,000,000 available in the pre-ICO sale. 1 AMBA is worth $0.25 and the AmbaCoin is being considered as the official currency of the “Federal Republic of Ambazonia”. Therefore the AMBA has become the second cryptocurrency experiment. The first one was the Petro of Venezuela and this was born out of the need to raise funding and revitalise a struggling economy by a government which was as yet unrecognised.
AmbaCoin is very similar to the Petro of Venezuela as well as the fact that it caused a socioeconomic upheaval in its creation. AmbaCoin is also an asset-backed cryptocurrency, just like the Petro. Just like the Petro it is currently unclear how the natural resources and projected earnings that give it value will be quantified and calculated. It is also unclear how the resources will be harnessed because the Cameroonian military still maintains control of Southern Cameroon.
A Coin Similar To The Petro
The AmbaCoin, just like the Petro, comes with a new national fiat currency and makes promises whose fulfilment are unclear. An excerpt from the AmbaCoin whitepaper reads:
“[AmbaCoin] investors will be able to recoup their investment in the same way as investors can benefit from the acquisition of treasury bonds and bills. As large numbers of people in the Ambazonian diaspora seek to invest in the country, they will be able to recoup their investment with handsome interest far beyond that available from treasury bonds and bills. At the same time, investors will have the unique and privileged opportunity to help put a nation back on track after the decades of misfortune as a marginalised people within Cameroon.”
Since there is a genuine street-level demand in the region for money that is not controlled by Cameroon’s Francophone central government, the project cannot be dismissed mainly because there it has a large investor base of as many as 2 million people. There are however criticisms of AmbaCoin economically and technically. Chris Anu, the separatist government’s Secretary of State for Communications and IT, has shared the information on Facebook that paper bond notes representing AmbaCoin tokens are also being prepared ahead of the proposed launch.