Cryptocurrencies like Bitcoin, Ethereum, Dogecoin, are already being extensively used across the global currency markets, but the packaging of the XTEM currency is what makes the difference

By Colls Ndlovu

Africa must never be left behind given the ongoing innovation and creativity within the technology sector. The sector is still driven by the Schumpeterian theory of creative destruction, which nowadays is called destructive technologies, that is to say, displacing antiquated and obsolete technologies and replacing them with newer and more robust ones that are oriented towards efficiency.

The financial industry has not been spared by this process.

The currency market in particular has come into sharp focus with the ongoing creativity and innovation that has seen cryptocurrencies becoming our zeitgeist financial products alongside the more traditional forms of money like fiat (paper) currencies.

It is against this backdrop that TE Capital – a Sandton-based financial institution, has come up with its own unique and bespoke cryptocurrency called XTEM which was formally launched in June 2021 at an initial market valuation of US$1 per unit, and has since appreciated to the current US$1.30 per unit as at late August 2021, with an unlimited upside potential.

The minimum amount of XTEM Coins for purchase is USD 250 worth of XTEM coins per transaction.

The XTEM cryptocurrency was initially targeted at the market in general and the TE Markets group’s huge ecosystem of stakeholders in particular.



Proposed as a means of exchange for other cryptocurrencies and to solve TE Markets members’ payment settlements challenges, it was also targeted at being a medium of exchange in building an African Commodities Exchange and creation of a continental wholesale micro-finance industry with XTEM as the circulating medium within that ecosystem.

At the core is also to address the perception of lack of intrinsic value for cryptocurrencies in general. The XTEM cryptocurrency comes with built-in mechanics to preclude such problems hence mitigating the risk of lack of intrinsic value which has tended to be an Achilles’ heel of many cryptocurrencies in the past including the Bitcoin, inter alia.


The global financial markets have seen unprecedented levels of growth within the cryptocurrency market over the past years.

Moreover, the generally elevated levels of inflation in most African markets shows that there should be innovation within the currency sector in order to come up with better ways of managing the risk of inflation.

In this respect, the XTEM currency initiative is coming in, very handy to serve as a bulwark against both inflation and the more ruinous hyperinflation which has devastated many African economies in the recent past.

It is worth mentioning that cryptocurrencies are now a major item in monetary policy regimes around the world and the sooner ordinary investors invest in this asset class the better for their strategies.

The idea of an XTEM currency is not a new one as cryptocurrencies like Bitcoin, Ethereum, Dogecoin, inter alia, are already being extensively used in the markets across the global currency markets.



However, the XTEM is not just going to be a naked cryptocurrency, but rather it will have real intrinsic value as it will be synthetically indexed to certain defined commodities exchanges, stock market indices, and will enjoy the full credit and might of TE Markets Limited and its various subsidiary entities.

The presence of such explicit and clear backing for the XTEM currency therefore mitigates the risk of vulnerability and potential volatility to the proposed currency.

As highlighted above, the lack of intrinsic value has generally tended to be an Achilles heel (i.e. source of vulnerability) for most cryptocurrencies.

The synthetic link for the XTEM currency provides it with a much better source of intrinsic value than even fiat currencies. Fiat currencies (paper money) have indirect intrinsic value that is why their value is heavily dependent on market confidence. In contrast, gold, platinum and silver on the other hand enjoy independent market confidence given the fact that they carry direct intrinsic value.

The XTEM has taken cognizance of the criticism that is usually leveled against other cryptocurrencies that they lack fundamentals, they have no known head offices, inter alia.

XTEM does have these fundamentals as it has direct links not only to stock markets but also to commodities markets as well as having defined offices.




Consequently, XTEM is not just a result of algorithms, passwords, and some block-chain or smart-chain technologies, but rather it has real fundamentals and intrinsic value as defined by the markets.

Why the XTEM cryptocurrency?

The cryptocurrency market is no longer a footnote of the financial system.

As of today there are dozens and dozens of various cryptocurrencies, but most of them have one key weakness: lack of intrinsic value. The XTEM currency comes with intrinsic value meeting all the technical definitions of money.

The XTEM will be exchangeable, tradable, and will serve as a store of value and a medium of exchange. Its value will be determined by the unforgiving and sometimes heartless market forces.

Much as the value of money is derived from the confidence it enjoys from the markets, but experience has shown that the markets in turn assign confidence on a currency on the back of the presence of fundamentals and the presence of intrinsic value.

In general, money is a medium of exchange and a store of value but must also be liquid and enable market players to exchange their goods and services using it as a medium thereof.

For the avoidance of doubt and for the elimination of ambiguity, for an object to meet the definition of money, it must meet the following characteristics:

Characteristics of money

(i) Must be liquid (ii) Must serve as a store of value (iii) Must be convertible to other currencies (iv) Must be generally accepted domestically and internationally (v) Must be tradable (vi) Must be exchangeable (vii) Must have intrinsic value (viii) Must be a medium of exchange (ix) International clearing houses like Mastercard, Visa and Euroclear must be able to clear it on their platforms. (x) Must be stable and durable as well as indestructible in the case of gold (xi) Money is the lubricant that oils the wheels of the economy.



Global banks and asset managers are already investing heavily on cryptocurrencies around the world. Africa cannot be left behind in the Schumpeterian process of creative destruction or disruptive ideas and innovation in the currency markets.

The XTEM cryptocurrency proposal must be seen against the backdrop of the desire to place Africa on the fever pitch of the currency markets.

It is our considered view that the adoption of the XTEM currency system for African markets will not only solve the continent’s ongoing currency challenges, but will also help the countries to reduce their inflations and help raise the standards of living while opening new opportunities, inter alia.

The introduction of XTEM will help to provide the much-needed liquidity for the investment community at domestic and foreign investors’ level. Invariably the XTEM will also help to make the African currency markets to be highly competitive, while sterilizing the African markets against the risk of inflation.

Operationally, the XTEM seeks to provide safer and more secure digital payment getaways in Africa.

The XTEM will have potential use as an intermediary crypto settlement tool on the TopFx trading platform including TE Markets Exchanges and business networks across Africa. XTEM is a utility Coin for the payments of goods, services and settlement of global transactions.



XTEM will be synthetically indexed to the Binance Smartchain backed by a very successful, profitable and well-capitalised multinational company, with vast experience in cryptocurrency modelling, investments, brokerage, commodity trading, wholesale micro-financing, global payment solutions, media and real estate.

Moreover, it will also be indexed to commodities exchanges across sub-Saharan Africa. The XTEM coin aims to provide transparent investment decisions with full disclosure.

The payment gateways industry is booming, and the cryptocurrency industry is rapidly developing. XTEM stands right at the focal point of great disruptive innovation.

Initially launched as a medium of exchange to solve payments and settlements challenges going forward the coin will be used in currency trading platforms, commodities exchanges, and continental stock market trading platforms that seeks to make trading Africa’s stock markets with cryptocurrencies, fast, economical and efficient.

The projects that will benefit from the XTEM are in natural resources mining and beneficiation, continental micro-finance, brokerage, agriculture and renewable energy projects all across Africa as well as building a consolidated synthetic commodities exchange.

In our next instalment we will address the mechanics of the XTEM cryptocurrency and how it will work and how communities and small businesses can invest in it together with ordinary people in general.


Colls Ndlovu, a currency expert and award-winning economist, writes in his personal capacity.







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