Author: Staff

Categories
Technology

Mauritius Poised to Introduce Its Own Digital Currency Soon

In a recent update, the Bank of Mauritius has made significant strides in its initiative to introduce a central bank digital currency (CBDC), gearing up for a pilot project slated to kick off in the upcoming months. Harvesh Seegolam, the Governor of the Central Bank of Mauritius, underscored the advanced progress of their work, signaling the commencement of the experimental phase.

The decision to explore a digital version of the Mauritian rupee was first announced in 2019. Since then, the island nation has embraced financial technology, even amending existing legislation to facilitate the issuance of digital banking licenses by the central bank. Mauritius also aims to position itself as a hub for multinational corporations seeking to establish their treasury headquarters, diversifying its financial services sector.

Governor Seegolam emphasized the bank’s proactive approach to adopting new technologies, while also acknowledging the potential risks associated with rapid advancements in fintech. He stressed the importance of thoroughly understanding the potential impacts on economic activity, financial stability, reputation, and inflation.

Furthermore, Mauritius intends to market itself as an attractive destination for multinational companies looking to set up regional treasury headquarters, leveraging its modern and efficient financial services sector.

While most of Governor Seegolam’s statements revolved around the growth of financial markets and digital transformation, he made a notable mention of the central bank’s significant reduction in foreign exchange market intervention. Since the beginning of the year, the bank has scaled down its intervention to $164 million, a substantial drop from the $622 million recorded during the same period in 2022. He reassured that despite this reduction, the Bank of Mauritius remains ready to support the foreign exchange market if the need arises, particularly during the year-end inventory accumulation period.

Categories
Business

Bybit Broadens Crypto Trading Horizons in South Africa with New Products and Fiat On-Ramp Service

Bybit, ranked as the world’s third most frequented cryptocurrency exchange, has officially unveiled its cryptocurrency derivatives products in South Africa, accompanied by the introduction of a convenient fiat on-ramp service. Bybit will be presenting these services in South Africa as the authorized representative of Money Doc (Proprietary) Limited, a licensed financial services provider.

Alongside the compliant marketing of its offshore derivatives trading products, Bybit is rolling out a new fiat on-ramp service tailored for the South African Rand (ZAR). This feature facilitates users to easily deposit Rands via bank transfer (EFT), including the option for instant transfers. This seamless process offers users effortless and cost-effective access to buying and selling cryptocurrencies. This development is poised to significantly empower South African cryptocurrency traders, allowing them to tap into Bybit’s exceptional liquidity and trading tools while adhering to regulatory guidelines.

Expressing his excitement about this expansion, Joshua Yau, Bybit’s Regional Manager for Africa, stated, “This achievement stands as a major milestone for Bybit as we bring globally renowned products to the passionate crypto community in South Africa, ensuring full compliance with regulatory standards. It is a pivotal step in our commitment to compliance. We are dedicated to providing a secure, user-friendly trading experience, featuring cutting-edge tools and economical access options that empower our users.”

Ben Zhou, Co-founder and CEO of Bybit shared his perspective on this strategic endeavor: “Our venture into South Africa underscores Bybit’s mission to democratize cryptocurrency trading while adhering to local regulations. We firmly believe in the transformative potential of blockchain technology in reshaping finance, and this expansion represents another stride towards realizing that vision.”

Bybit’s expansion in South Africa mirrors the company’s global inclusivity and its unwavering dedication to unlocking the full potential of cryptocurrency enthusiasts, offering them the tools, support, and opportunities to thrive in the realm of Web3 and beyond.

Categories
Business

Nigerian Crypto Exchange Patricia Secures Funding for User Reimbursements After Hacking Incident

In the wake of a cyber attack in May, Nigerian cryptocurrency exchange Patricia has successfully raised an undisclosed amount of capital to initiate the reimbursement process for affected users. The platform fell victim to hackers, resulting in a loss of approximately $2 million worth of digital assets, limited to BTC and naira holdings. To address the situation, Patricia temporarily froze withdrawals, citing the need to enhance its security measures and trading platform.

Despite the exchange’s efforts to reassure its users, impatience has grown among the affected customer base. CEO Hanu Fejiro acknowledged users’ frustrations and confirmed that funding had been secured to expedite the reimbursement process. While he assured users that the first batch of customers would receive their full refunds immediately upon the launch of the application, a specific date for the refunds was not provided.

This lack of a concrete timeline has stirred unrest among users, leading some to contemplate organizing protests against the exchange. Additionally, there are reports of users considering legal action against Patricia to address their grievances.

The situation highlights the challenges faced by crypto exchanges in maintaining user trust and security amid rising cybersecurity threats. Patricia’s actions to secure funding demonstrate a commitment to reimbursing affected users, but the lack of transparency regarding the timeline remains a point of contention for the disgruntled customer base.

Categories
Business

The Future of Payments: Scan to Pay App Welcomes Cryptocurrency

In a groundbreaking collaboration, Scan to Pay, the flagship QR ecosystem powered by Ukheshe in South Africa, has teamed up with Xion Global to integrate cryptocurrency transactions into their platform. This alliance marks a significant leap forward for Scan to Pay, offering a wider array of payment options and ushering in a new era of financial flexibility for the public.

The meteoric rise of cryptocurrencies has opened up a world of possibilities in the realm of financial transactions. Tracy-Lee Schoeman, Vice President of Loyalty and Rewards at Ukheshe, expressed her excitement about this integration, emphasizing the transformative potential of cryptocurrencies. She highlighted their ability to reduce costs, accelerate settlement times, and provide enhanced financial autonomy, all of which motivated Ukheshe to embrace this revolutionary endeavor.

This move mirrors a global trend towards cryptocurrency adoption. A recent Deloitte report revealed that about 75% of U.S. merchants are either considering or actively incorporating cryptocurrency and stablecoin payments. South Africa is following suit, with major retailers and local spaza shops already embracing cryptocurrencies as viable payment methods.

Xion CEO Ronan Quarmby pointed out that approximately 12.5% of South Africa’s population currently holds cryptocurrencies. A significant majority of these individuals, falling within the 18 to 44 age bracket, are utilizing cryptocurrencies for their purchases. This surge in crypto usage underscores the growing prominence of web3 payments in the nation’s e-commerce landscape.

Despite initial doubts, an increasing number of South African business owners are recognizing the benefits of accepting Bitcoin payments, as local reports have detailed. South Africa is poised to lead the charge in adopting web3 payments in Africa, particularly in developing nations where these transformative financial technologies are poised for rapid expansion.

What sets Scan to Pay’s integration apart is the seamless user experience it offers. Users can simply scan a QR code on their receipt, confirm the transaction amount within the Scan to Pay app, select “pay with a crypto voucher,” and with a single click and their attached Metamask wallet, complete the transaction.

Furthermore, Xion Global has implemented robust security features, including Anti-Money Laundering (AML), Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols. These measures bolster the system against illicit financial activities and unscrupulous merchant behaviors. Additionally, Xion Global is at the forefront of South Africa’s transition to Web3 payments, thanks to its strategic partnership with Polygon Labs. This partnership further enhances the security and efficiency of Scan to Pay’s cryptocurrency transactions, ensuring a safe and reliable payment experience for users.

Categories
Social Good

The Human Rights Foundation Backs 15 Bitcoin Initiatives in Africa, Latin America, and The Middle East

The Human Rights Foundation (HRF) has unveiled its latest philanthropic initiatives as part of the Bitcoin Development Fund. In this latest round of funding, HRF has generously supported 15 projects, with a strong emphasis on global education, Bitcoin Core development, Discrete Log Contracts (DLCs) related to the Lightning Network, ecash technology, and providing financial aid to developers hailing from oppressive regimes, notably in Latin America, Africa, and the Middle East.

The grant program encompasses seven substantial grants, each valued at $50,000, five grants worth $25,000 each, and three grants amounting to $10,000 each. The total contribution surpasses half a million U.S. dollars or approximately 19 BTC, based on the value at the time of this announcement.

This announcement builds upon the recent launch of the 20 Bitcoin bounty challenge a few months ago, bringing HRF’s cumulative contributions to Bitcoin’s improvement and the well-being of its developers to nearly 40 BTC since July.

As of now, only the “Open Sourcing the Design Guide” bounty has been successfully claimed, and half of the “End-to-End Encrypted Nostr Group Chats” bounty has been disbursed. These bounties will remain open for submissions until December 31st, 2024, with additional updates and detailed information available on the organization’s website.

Regarding the recipients of the newly announced grants:

1. Gee Deer is set to receive $50,000 for their noteworthy contributions to Bitcoin Core and the development of Lightning Network native stablecoins. Their focus is on minimizing counterparty risk and enhancing decentralization through the use of Discrete Log Contracts (DLCs).

2. Jarol Rodriguez will be granted $50,000 for his valuable contributions to Bitcoin Core, which include evaluating pull requests, troubleshooting issues, enhancing the Bitcoin Core App, and making it compatible with mobile devices.

3. Furszy will be awarded $50,000 for its dedication to Bitcoin Core, which involves analyzing pull requests, addressing bugs, suggesting performance and code improvements, and actively participating in public discussions.

4. Summer of Bitcoin is set to receive $50,000 in support of their summer fellowship program. This program introduces college students worldwide to Bitcoin programming and design.

5. Justin Moeller will be granted $50,000 to advance his work on Fedimint. His focus includes implementing a database migration system and improving the utilization of ecash.

6. The Kawaakibi Foundation will receive $50,000 to establish a MENA Bitcoin Hub. This hub aims to educate activists, journalists, and organizations in repressive regions on the secure use of Bitcoin for transactions and fundraising.

7. Vinteum will be provided with $50,000 to further open-source Bitcoin development in Brazil and Latin America. Their efforts will support developers and nurture Bitcoin communities.

8. D++ will be awarded $25,000 for her work on Free and Open Source Software (FOSS) projects and global educational initiatives. These include talks, workshops, and maintaining Bitcoin Core.

9. Bitcoin Ekasi will receive $25,000 to create a self-sustaining Bitcoin economy in South Africa. This involves onboarding local businesses to Bitcoin usage and providing education and skills development.

10. Amiti Uttarwar will be granted $25,000 for her commendable efforts in Bitcoin mentoring, ADDRMAN, and Bitcoin Bytes.

11. Ben Perrin will receive $25,000 to bolster his channel for global Bitcoin education through instructional materials, in-person and online training, and workshops.

12. La Librería de Satoshi (Library of Satoshi) will be provided with $25,000 to offer technical education in Spanish. This initiative aims to empower Spanish-speaking developers to become Bitcoin Core contributors and educators.

In addition to these grants, HRF will allocate $10,000 in travel awards to three events, facilitating the participation of Bitcoin developers from challenging political environments.

Christian Keroles, the Financial Freedom Director for HRF, underscores the foundation’s unwavering commitment to expanding access to financial technology. He notes that this round of grants serves dual purposes, encompassing both technical advancements and educational initiatives, ultimately making Bitcoin more accessible worldwide, particularly for those who need it most.

Categories
Business

Financial Stability Concerns Arise Over Nigeria’s E-Naira CBDC

A recent study conducted by the Central Bank of Nigeria (CBN) has highlighted concerns regarding the potential impact of the country’s nearly two-year-old e-naira central bank digital currency (CBDC) on financial stability. This is despite the anticipated benefits of such a digital currency, which could enhance Nigeria’s financial inclusion rate from the 64.1 percent recorded in 2021 to the targeted 95.0 percent by 2024.

Launched in late October 2021, the e-naira initiative, championed by former CBN governor Godwin Emefiele, has not garnered widespread adoption among the Nigerian population. As previously reported by Bitcoin.com News in August 2022, the e-naira app had fewer than one million downloads approximately one year after its CBDC introduction.

Numerous observers have pointed to this low download count in comparison to Nigeria’s population of over 130 million adults as an indicator of the public’s lukewarm response to the CBDC’s introduction. Nevertheless, the Nigerian Central Bank’s efforts to promote and incentivize e-naira adoption continue.

Enhancing the Stability of Banking Deposits

One of the primary advantages repeatedly emphasized by the CBN in support of the CBDC is the expansion of financial inclusion. The CBN’s report titled “Economics of Digital Currencies” further discusses the positive impact of the e-naira USSD code for non-smartphone users, which has contributed to increased e-naira transaction volumes. Additionally, the central bank claims that the CBDC will bolster the size and stability of banks’ deposit bases.

However, despite the expected benefits of a CBDC, the CBN’s report also highlights potential risks associated with the conversion of traditional bank deposits into e-naira. The report points to the significant growth in the conversion of bank deposits to e-naira since the CBDC’s inception.

“Since its introduction, the conversion of bank deposits to e-naira has experienced an average monthly growth rate of 78.3 percent, totaling approximately N1.66 billion [$2.1 million]. Furthermore, the proportion of e-naira in circulation relative to the average liquidity in the banking system has averaged 0.1 percent, with peaks of 0.2 percent in May and August 2022,” as noted in the CBN report.

The CBN also raises concerns about the potential negative impact on banks’ overall profitability due to reduced non-interest income resulting from the CBDC’s adoption. Additionally, the report underscores the increased cybersecurity risks associated with a CBDC.

Categories
Technology

Uganda Set to Host ‘Web 3.0 Security and Digital Asset Custody’ Summit Amid Rising Fraud Incidents

In an effort to address the growing concerns surrounding the security of Web 3.0 technologies and the protection of digital assets, Uganda is gearing up to host the highly anticipated ‘Web 3.0 Security & Digital Asset Custody” Ignite conference. This event is scheduled for September 27, 2023, at The Innovation Village in Ntinda, Kampala at 4 pm, and is poised to bring together a diverse array of experts, professionals, researchers, and enthusiasts hailing from various fields such as cybersecurity, blockchain, finance, cryptography, and law.

The primary objective of this conference is to provide a dedicated platform for stakeholders to engage in discussions pertaining to the myriad challenges, best practices, and cutting-edge solutions within the domain of Web 3.0 security and the custody of digital assets.

Against the backdrop of recent high-profile attacks, hacks, and exploits targeting prominent DeFi protocols, along with instances of social engineering deception and cryptocurrency fraud, the organizers have underscored the timeliness and importance of addressing this critical issue. They stated, “Given the recent spate of events, we believe it’s the opportune moment to shine a spotlight on this vital subject, which holds significant implications for the future of digital assets, finance, and Web 3.0 as a whole.”

The conference agenda will encompass a wide spectrum of topics, including:

1. Web 3.0 Security Challenges: Identifying vulnerabilities and threats unique to Web 3.0 technologies, blockchain networks, smart contracts, and DApps.

2. Decentralized Identity and Privacy: Exploring strategies to ensure user privacy and robust identity management in decentralized ecosystems.

3. Smart Contract Security: Evaluating techniques for auditing and securing smart contracts to avert potential exploits and hacks.

4. Digital Asset Custody Solutions: Examining various approaches to safeguarding and administering digital assets, including custodial services and self-custody options.

5. Cybersecurity Best Practices: Sharing effective security measures tailored for individuals, enterprises, and cryptocurrency exchanges.

6. Legal and Regulatory Considerations: Addressing the evolving legal framework encompassing digital assets, custody providers, and user safeguarding.

7. Institutional Adoption of Web 3.0: Scrutinizing the challenges and prospects for institutional investors within the decentralized finance (DeFi) landscape.

8. A Deeper Dive into Blockchain Architectures: Understanding how different blockchain designs enforce security from the protocol level onwards.

The conference organizers aim to foster knowledge sharing, collaboration, and networking among attendees to collectively bolster the security and trust in Web 3.0 technologies and the management of digital assets. Furthermore, they aspire to catalyze the development of innovative solutions that ensure the enduring viability and prosperity of the decentralized web and its foundational financial infrastructure.

This inclusive event welcomes both technical and non-technical participants, extending its reach to encompass students, policymakers, and politicians alike.

Categories
Business

CBN Aims for 20 Million eNaira Wallets and 300 Million Transactions by 2026.

The Central Bank of Nigeria (CBN) has set ambitious targets for the widespread adoption of its e-naira project in the coming years. The projection for 2026 anticipates over 20 million eNaira wallet downloads and an estimated transaction volume of 300 million.

Launched on October 21, 2021, during the Muhammad Buhari administration, the e-naira is a Central Bank Digital Currency (CBDC). These digital currencies, issued and regulated by a nation’s central bank, serve as a digital representation of the traditional fiat currency.

The primary objectives of CBDCs are to offer businesses and consumers enhanced privacy, transferability, convenience, accessibility, and financial security. CBDCs are also expected to reduce the maintenance costs of intricate financial systems and decrease cross-border transaction expenses. It’s worth noting that more than half of the world’s central banks are currently exploring or developing digital currencies.

In addition to the projected growth in e-naira users, the CBN has emphasized the substantial investment and innovation potential associated with the project. The CBN cited the two-year-old launch of the e-naira and subsequent achievements as evidence of its capacity to improve the effectiveness of monetary policy, revolutionize payment systems, and promote financial inclusion, among other advantages.

Furthermore, the bank acknowledged the potential for job creation as the e-naira gains traction. It anticipates that increased adoption rates will lead to a surge in the onboarding of agents. There are also investment opportunities for those involved in creating eNaira wallets and designing hardware tokens. Foreign investors are encouraged to participate, as this will foster innovation and competition within Nigeria’s digital space.

Nigeria’s pursuit of the eNaira positions the country as a trailblazer in the realm of digital currencies, piquing the interest of other nations in exploring the boundless possibilities of CBDCs. The transformative journey of the eNaira not only reshapes Nigeria’s financial landscape but also serves as a guiding beacon for the future of digital currencies on a global scale.

Categories
Technology

Akowe Aims to Revolutionize Africa’s Education System with Blockchain Technology

In an effort to address the challenges plaguing traditional certificate systems in Africa, Akowe, a Lagos-based startup, has leveraged blockchain technology to create a secure and verifiable platform for academic record issuance. This groundbreaking initiative, which was showcased at TechCrunch Disrupt’s 2023 Startup Battlefield, seeks to bridge the gap in regions where essential infrastructure is often lacking.

Akowe’s founder, Ayodeji Agboola, explained in an interview that the demand for digital certificate verification systems in sub-Saharan Africa is substantial. This demand stems partly from the difficulties associated with reissuing academic records and universities’ reluctance to do so. Agboola highlighted that universities are often protective of their certificates, issuing them only once. If a certificate is lost, universities typically provide an affidavit instead of a replacement certificate.

The genesis of Akowe can be traced back to 2018 when Agboola, who was running a digital marketing business at the time, began training small business owners in the use of Facebook. By 2019, the program had trained an impressive 30,000 individuals, and the need to prove completion of the course became apparent. Frustrated by the lack of simple tools for this purpose, Agboola decided to develop a solution himself. In late 2020, he and his team built the platform in just three weeks and successfully tested it with their own certificates, setting the stage for Akowe’s journey.

Agboola emphasized the importance of making blockchain a tangible utility for people in Nigeria and across Africa, addressing real-world problems and challenges. Akowe’s innovation brings blockchain into everyday use by addressing a critical need for secure academic record verification.

The key role that blockchain plays in this system is data storage. Organizations upload their certificate templates and recipient lists to Akowe, which then automatically generates digital copies of academic records for each individual. When a recruiter or a visa officer needs to verify a person’s college certificate, they can access all the relevant metadata, including the certificate’s hosting URL (typically a school’s website), university names, student names, courses, grades, and graduation year, stored securely on the blockchain.

While Akowe initially used Hyperledger, a permissioned blockchain, it has since explored Amazon’s QLDB, a new ledger database solution that allows organizations to create centrally managed records. This move ensures the security and immutability of the ledger, crucial for maintaining the integrity of academic credentials.

Although Akowe offers its platform to universities for free, it sustains itself by taking a percentage of the fees that universities charge users. Currently, the startup is finalizing pilot programs with two institutions and engaged in discussions with 15 others.

One of the primary challenges facing Akowe is user acquisition, particularly in public universities, which are more bureaucratic in their processes. Agboola mentioned that he has been cautious in presenting blockchain in his pitches, as many educational institutions in Nigeria have a negative perception of it due to its association with cryptocurrencies. Instead, he focuses on emphasizing the platform’s focus on safety, data security, and privacy, differentiating it from the world of crypto and leading to more productive conversations with potential partners and clients.

Categories
Business

Cameroon Urges Crypto Regulations To Shield 900K Users From Ponzi Schemes

The Ministry of Finance in Cameroon is urging the implementation of crypto regulations in order to safeguard the interests of approximately 900,000 cryptocurrency users and combat the proliferation of Ponzi schemes within the crypto sector. The absence of clear directives from the Central African Financial Market Supervisory Commission (COSUMAF) has created an uncertain regulatory landscape, which has, in turn, paved the way for fraudulent schemes to thrive.

The ministry’s recent report on cryptocurrency and Ponzi schemes highlights the prevalence of these fraudulent operations in Cameroon’s crypto ecosystem. These nefarious entities lure unsuspecting investors with enticing promises of rewards, which often lead to substantial financial losses for the public. 

According to the study, the cryptocurrency user base in Cameroon constitutes roughly 6.76% of the active population, with around 900,000 individuals actively participating. The report attributes this surge in crypto adoption to the convenience of online transactions, particularly during the COVID-19 pandemic.

One glaring issue identified in the report is the absence of formal agreements between cryptocurrency users and exchanges. This lack of contractual clarity allows crypto companies to operate without constraints, potentially putting investors and users at risk.

The study’s key findings include:

– Only 39.3% of respondents (737 individuals) reported receiving a contract.

– A significant 89% of those who did receive a contract indicated that they reviewed its terms before signing.

To address these concerns, the study recommends several measures:

1. Clarification of Contract Terms: There’s a pressing need to establish clear and transparent contract terms to protect investors and ensure financial stability.

2. Crackdown on Ponzi Schemes: Swift identification and closure of Ponzi schemes within the crypto space to prevent further harm to investors.

3. Formalization of Regulations: The establishment of comprehensive regulatory frameworks for the crypto industry.

4. Increased Public Awareness: Educating the public about the inherent risks associated with cryptocurrencies.

The study involved a survey of 18 cryptocurrency companies primarily involved in activities such as providing investment advice, facilitating online crypto transactions, and managing crypto portfolios.

Notably, a majority of respondents were between the ages of 20 to 30, and many held higher education degrees. Most investors had modest incomes, with only a small fraction earning over 500,000 FCFA (approximately $81) per month.

In conclusion, the Cameroon Ministry of Finance’s call for crypto regulations aims to protect the burgeoning crypto community in the country from fraudulent schemes and ensure the long-term stability of the digital asset market. These measures also seek to promote financial literacy and responsible investment practices among cryptocurrency users.