Africa’s recently launched Pan-African Payments and Settlements System (PAPSS) could potentially bring $50 billion of informal trade into the formal economy, Tunde Macaulay, head of Africa and offshore regions at Standard Bank Group, said.

Macaulay also said PAPSS could save the continent up to $5 billion in processing costs and enhance financial inclusion by providing more accessible and efficient payment options for individuals and small businesses. The system, launched in 2022, is designed to enable instant or near-instant transfers of funds between African countries.

As previously reported by Bitcoin.com News, the PAPSS was also launched to help Africa reduce barriers faced by small to medium enterprises. Officials have said the payment system also aims to strengthen the national currencies of African countries.

While African governments have welcomed the system, questions remain about the payment system’s viability as an alternative to the U.S. dollar. However, Macaulay believes PAPSS can be a viable alternative if implemented correctly.

“We will have visibility of it if the payment system is implemented the way it’s supposed to be. That’s the intention — to remove this friction across payments,” the banker said.

Though its already backed by 115 commercial banks, 13 central banks, and 10 switching-service providers, it still requires a coordinated “network effect” to scale, but that is no guarantee, according to a banker. Moreover, the system may face challenges from a returning Donald Trump who has reportedly spoken out against countries attempting to de-dollarize.

On the campaign trail, Trump’s has threatened measures such as tariffs, export controls, and currency manipulation charges against nations seeking to bypass the dollar-based financial system, as reported by Bloomberg.

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