Author: Staff

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Business

President Nayib Bukele announces a meeting of 44 countries in El Salvador to discuss Bitcoin

El Salvador, the first country to adopt Bitcoin as state currency has invited 32 other countries and 12 financial institutions to discuss Bitcoin economics. President Nayib Bukele announced on Sunday that the 44 nations would meet yesterday to address financial inclusion, the digital economy, banking the unbanked, and the country’s Bitcoin rollout and benefits.

In subsequent tweets, the president announced that the Central Bank of Sao Tomé and Principe, the Central Bank of Paraguay, the National Bank of Angola, the Bank of Ghana, the Bank of Namibia, the Bank of Uganda, the Central Bank of the Republic of Guinea, the Central Bank of Madagascar, the Bank of the Republic of Haiti, and the Bank of the Republic of Burundi, as well as the Central Bank of Eswatini and its Ministry of Finance, have all suspended Bitcoin operations. 

According to Bukele, the Rwandan National Bank, Nepal Rastra Bank, Kenya’s Sacco Societies Regulatory Authority (SASRA), the State Bank of Pakistan, Costa Rica’s General Superintendency of Financial Entities, Ecuador’s Superintendence of the Popular and Solidarity Economy, and El Salvador’s Central Bank will also all be present.

All these representatives from Asia, Europe, and Africa attended and after the discussion, Nayib Bukele tweeted;

This was to emphasize his joy because all these countries have accepted Bitcoin transactions even after the numerous warnings that El Salvador has received from the International Monetary Fund (IMF).

Categories
Opinions

Could Crypto be the Continent’s new Blood Diamonds?

As cryptocurrency adoption increases around the world, resource wars and economic crises are being seen to crop up in what analysts have termed as a new kind of high-tech “blood diamond”.  

Last month, the Central African Republic (CAR) became the second country to adopt Bitcoin following El Salvador in a move that has baffled many experts and attracted criticism from the International Monetary Fund and more recently, the regional Bank of Central African States. 

Given that in the only other existing case study, after close to a year since its adoption, 86% of businesses in El Salvador were found to have never carried out a single transaction in Bitcoin, the prospects in CAR do not look positive.

A lot of the confusion is tied to the fact that CAR is ranked among the top 10 poorest countries according to the World Population Review. This raises a major question about its readiness to adopt Bitcoin with its high tech requirements leading to the follow up of “Why now?”

Some analysts say CAR’s adoption of crypto is meant to annoy the IMF and foreign-owned money transmitters because it is difficult to see a practical angle where the move could possibly attract any investors.

CAR ranks poorly in terms of the infrastructure needed as it ranks poorly in terms of internet access and only 14% of the population have some access to electricity.  It is unclear how the 90% relying on wood and charcoal could see their conditions improved by Bitcoin as was claimed by the CAR president in the Bitcoin announcement statement. 

CAR also has major human rights issues. Human Rights Watch and United Nations experts recently said that since 2019, Russian fighters have been torturing, raping, and executing civilians across CAR with complete impunity. 

CAR’s government relies on foreign military assistance to keep control, including through the Wagner Group, a private military security contractor with apparent links to the Russian government, and with a presence in other African countries, as well.

Since its invasion of Ukraine, Russia has had sanctions imposed on it but Bitcoin has enabled it to continue funding its global operations including within Africa. Experts believe that this is enabling Russia to expand its influence in sub-Saharan Africa.

Still on the continent, amid reports of paramilitaries committing crimes against humanity in Ethiopia, Cardano developers are collaborating with Ethiopian authorities to develop digital surveillance tools, including a digital ID and records system. Cardano plans to launch a crypto payment network in Ethiopia before expanding to the rest of Africa.

Throughout history, the intentions of European powers and their private companies have been questionable because they are known to capitalize on conflict. 

The term “blood diamond” arose to define any diamond sold to found military action in diamond-rich areas and looking at the current trend, cryptocurrencies could open the door for this exploitative use case scenario. 

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Business

Terra USD to compensate some users, Backer says

TerraUSD, a subsidiary of the business behind the defunct stablecoin, announced yesterday that it had spent the majority of its reserves last week defending its dollar peg and would use what was left to repay certain users who had lost out.

The token’s demise last week sent cryptocurrencies falling, a trend that continued yesterday, with bitcoin giving up its weekend gains to trade just below $30,000.

Cryptocurrency markets were rocked by the spectacular collapse of TerraUSD, a so-called stablecoin that lost its 1:1 dollar peg. TerraUSD was trading around 5 cents at 1647 GMT yesterday, according to CoinGecko pricing.

Luna Foundation Guard (LFG), a Singapore-based non-profit organization designed to maintain TerraUSD’s price, had been building large reserves of cryptocurrencies including over 80,000 bitcoin, to support the peg. The value of the reserves hit $4 billion on May 3, according to LFG data.

However, LFG alleged in a series of tweets that it had spent the majority of its bitcoin last week in a futile bid to keep TerraUSD afloat as it fell apart.

LFG stated it would now utilize whatever reserves it had left to reimburse remaining TerraUSD customers, beginning with the smallest holders, but it had not yet decided on the best means to do so.

According to LFG’s data, the remaining coins in the reserve were valued a little under $90 million.

According to blockchain analytics firm Elliptic, holders of the TerraUSD coin and a related token, luna, have lost about $42 billion in the last week.

“There seems to be little hope for those hoping that some of the reserves could be used to compensate users of the stablecoin – since so little of it remains,” said Tom Robinson, chief scientist and co-founder at Elliptic.

“Of course, we will wait to see whether LFG can provide proof to back up their statements.”

Stablecoins and their function in the cryptosystem as a major medium for moving money between cryptocurrencies or converting balances to fiat cash have received a lot of attention as a result of the incident, notably from financial regulators.

Crypto assets might destabilize the international financial system, according to Bank of France Governor Francois Villeroy de Galhau, if they are not regulated and made interoperable in a consistent and suitable manner across jurisdictions.

Stablecoins, which he claimed were misnamed, was one of the causes of risk, he said.

Stablecoins, according to Fabio Panetta, a member of the European Central Bank’s executive board, are subject to runs.

On May 12, Tether, the world’s largest stablecoin, briefly lost its 1:1 peg before regaining it. Tether, unlike TerraUSD, is backed by traditional asset reserves, according to its operating firm.

Bitcoin fell to $25,400 on the same day, its lowest level since December 2020, before recovering to $31,400 on Sunday.

On Monday, the second-largest cryptocurrency, Ether, dropped 6.1 percent to roughly $2,000 USD.

Categories
Social Good

Cassava’s AfriMyth NFT Meme Contest

The Cassava Network has announced a meme competition that will see prize winners receive special NFT pieces as a reward. 

Cassava Network is a blockchain-powered tokenized rewards platform that builds several disruptive DeFi and NFT solutions for Africans to connect with the global mass of crypto enthusiasts and blockchain finance.

The Network runs through a powerful multi-function app and wallet that allows users to explore rewards, manage and trade assets including NFTs, perform in-app swaps and interact with Web3 platforms through the in-wallet browser. 

The company has raised over $8 million from over 40 global investors to fund its initiatives. Cassava held an NFT giveaway at the beginning of May that received more than 200,000 entries to help develop the AfriMyth NFT collection. 

The AfriMyth collection is a composable NFT collection celebrating African culture and creativity. Over the coming months, Cassava will release the different parts of the NFT to be combined to form a unique AfriMyth NFT avatar on the Network platform. 

The competition involves using the different components that the company has called AfriMyth props to generate the best and most creative“memes” that will be voted on to determine the winner. 

To participate, one has to download the Cassava logo and the different AfriMyth props that they are to use. The props are then combined to generate the meme which must include the Cassava logo. These downloadables can be found here. 

Meme makers should then tweet their meme including the hashtag #AfriMythNFT and tag the Cassava Network in the post for recognition. These tweets are to be included in the Cassava Network’s “#memecontest” Discord channel where voting begins. 

Submission officially opened on 15th May and will close on 22nd May with winners receiving their rewards a few days after voting closes on the 26th. 

First, second and third places will be determined by the Cassava team while the People’s Choice award will be voted on by the Cassava community. 200 random participants will also receive a prize but if less than 200 entries are received by the closing then everyone will get a reward. 

Prizes

First Prize

Winners: 1

Prizes for each winner: 8 AfriMyth props

Second Prize

Winners: 3

Prizes for each winner: 5 AfriMyth props

Third Prize

Winners: 5

Prizes for each winner: 3 AfriMyth props

People’s Choice

Winners: 10

Prizes for each winner: 2 AfriMyth props

The most popular as decided by the Twitter and Discord communities. 

Participants

Winners: 200

Prizes for each winner: 1 AfriMyth prop

Key dates

Submissions open: 15/May –22/May

Voting closes: 26/May

Winners announced: 27/May

Rewards allocated: 27/May –31/May

Categories
Business

After the Terra-LUNA Fiasco, the UK wants to regulate stablecoins

Following the collapse of TerraUSD (UST) and Terra (LUNA), the British Treasury Department has reaffirmed its resolve to regulate stablecoins.

According to a Her Majesty’s (HM) Treasury Spokesperson,

“Legislation to regulate stablecoins, where used as a means of payment, will be part of the Financial Services and Markets Bill which was announced in the Queen’s Speech.”

HM Treasury, the UK Treasury Department, is forging a way forward with plans to regulate payment stablecoins, despite a crypto market fall last week, according to The Telegraph on Saturday.

Terra’s downfall, which saw algorithmic stablecoin TerraUSD(UST) lose its peg to the US dollar and terra (LUNA) plummet to almost zero, provided confirmation.

The HM Treasury Spokesperson further said,

“This will create the conditions for issuers and service providers to operate and grow in the U.K., whilst ensuring financial stability and high regulatory standards.”

The Queen’s Speech, which defined the British government’s legislative priorities for the coming parliamentary year, was delivered by Prince Charles last week. Two of the proposed measures mention cryptocurrency specifically.

The British government published a detailed strategy in April to transform the country into a global crypto powerhouse and a crypto-friendly environment. The idea includes creating a dynamic regulatory framework for crypto, regulating stablecoins, and cooperating with the Royal Mint to create a non-fungible token (NFT) that will be launched by summer.

According to Rishi Sunak, the British chancellor of the exchequer, the policy will keep the UK financial services industry at the cutting edge of technology and innovation.

According to the Treasury, algorithmic stablecoins will not be included in the bill since they do not guarantee stability. The UST of Terra (LUNA) is an algorithmic stablecoin.

HM Treasury Spokesperson went on to say,

“The government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto-assets.”

Following the demise of Terra (LUNA) and UST, US politicians also urged for immediate regulation of stablecoins. Treasury Secretary Janet Yellen, on the other hand, feels that stablecoins pose no immediate danger to financial stability in the United States.

Categories
Opinions

Central African Bank Regulator Announces Nationwide Crypto Ban

The Central Republic of Africa’s monetary authority placed a ban on cryptocurrency. The Central Bank’s decision was imposed and announced on Friday, just weeks after the Central Africa Republic   (CAR) Government declared Bitcoin to be legal tender alongside the CFA franc, and allowed the use of cryptocurrencies. In the press statement that was released yesterday, the regulator stated;

“It is forbidden for taxable institutions and their technical partners in the context of payment services to exchange or convert, settle or hedge in foreign currency or CFA franc transactions relating to or related to cryptocurrencies.”

“The treatment of a cryptocurrency or virtual currency as a means of valuing the assets, liabilities or off-balance sheets of taxable institutions is prohibited.”

The Banking Commission of Central Africa (COBAC) is the Central Bank that serves the Central African Economic and Monetary Community (CEMAC).  CEMAC comprises six country members, such as the Central African Republic, Cameroon, Chad, Gabon, Equatorial Guinea, and the Republic of the Congo.

The Central Bank declared that the ban was put in place to ensure financial stability. The crypto ban came after The Central Bank conducted a special meeting on 6th May to investigate the impact of cryptocurrencies in the region. 

“In order to guarantee financial stability and preserve client deposits, COBAC recalled certain prohibitions related to the use of crypto-assets in CEMAC,” the financial regulator said.

“COBAC has decided to take a number of measures to set up a system for identifying and reporting operations related to cryptocurrencies,” The Central Bank further mentioned.

The regulator stated that the ban includes the holding of cryptos of any kind, the exchange, conversion, or settlement of transactions associated with cryptocurrencies, and a medium to provide access to blockchain-based goods or services such as assets or liabilities.

However, Serge Ghislain Djorie, the Government spokesman, said that the Central African Republic had not received any official notice from the COBAC about a crypto ban. But he acknowledged that he had seen the news in the press and on social media.

“We are waiting for the document to be officially transmitted before we can respond. It must be understood that each state has sovereignty,” Djorie stated.

Categories
Business

Nigeria Issues New Regulations on Crypto.

The market regulator in Nigeria has issued a new set of regulations for digital assets showing one of the continent’s leading adopters of crypto is still looking to strike a balance between an outright ban on crypto-assets and their unregulated use.

In February 2021, the Central Bank of Nigeria released a circular addressed to banks and other financial institutions with the directive that transactions in cryptocurrencies and facilitating payment for cryptocurrency exchanges were prohibited.

Much as the Nigerian Government had issued this ban on decentralized cryptocurrencies, this did not deter its efforts to launch the eNaira as the digital version of the nation’s existing currency in October 2021. 

The eNaira was supposed to improve financial service delivery in Nigeria but faced its own challenges like infrastructure issues and the reliance on an external service provider that made many question whether this was the best use of the national resources. 

However, in October 2021 still, the Global Crypto Adoption Index released by Chainalysis showed that Nigeria ranked 6th out of 154 countries ranked in terms of adoption of crypto. Crypto usage had actually accelerated since the government ban.

It is no surprise that the young tech-savvy population was quick to shift to alternatives like peer-to-peer trading services still provided by crypto exchanges in order to bypass the financial sector ban.

Nigeria’s Securities and Exchange Commission (SEC) thus went on to publish the “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” on its website on 13th May 2022. Take a look at them here. 

In a 54-page document, the regulator details registration requirements for digital assets offerings and custodians, regulations for operating a digital asset exchange and token issuance regulations.

The additional registration requirements are to serve in addition to the existing regulations and all licenced users, companies or other entities are expected to comply with the anti-money laundering standards and regulations to combat financial terrorism. 

While the original crypto ban appeared to be a step away from crypto, the new regulations appear to be in place to cover safety concerns that the Nigerian Government has to allow its people to safely participate in the expanding space of Web3. 

Categories
DeFi

Bull vs Bear Market: Market differences to help navigate the crypto jungle.

The cryptocurrency markets have continued to see top cryptos like Bitcoin, Ethereum and Avalanche continue to dip in prices in a situation that experts refer to as a bear market. 

This is one of two market scenarios with the other known as a bull market. A bull market is characterized by sustained periods of price increase. It is common to see the markets described as one of these two whether you are into cryptocurrency, stocks, real estate, or any other asset. 

Without going very much into the origin of the attachment to these particular animal names, a simplistic way to look at it is if you have a farm, you are always happy to have a bull there but seeing a bear could cause some panic.

A bull market, also known as a bull run, is a rising market primarily associated with economic prosperity. Here, confidence in the markets is high and investors are eager and able to buy. 

 As investor confidence rises, a positive feedback loop emerges, which tends to draw in further investment, causing prices to continue to rise. Investors who believe that prices will increase over time are known as “bulls.” 

Global history has recorded some good runs of bull markets with notable examples of the boom experienced after World War II that saw the global markets exceed their peaks from before The Great Depression and more recently the collapse of the housing market in 2008 also subsequently led to a bull market in 2009. 

However, bull runs can not last forever. While bull markets are fueled by optimism, a change from this results in bear markets that are associated with doubt over the future with an example being the dot com bubble of 2000. Bear markets have more investors looking to sell and this is what results in more price declines. 

The current crypto bear market situation has been caused by a number of factors ranging from the regulatory restrictions and bans that different governments around the world have imposed on cryptocurrencies to the drastic increase in crypto projects that is seeing trade volume increase even when prices are dropping. 

Bear markets can last anywhere from a few weeks to several years. Since markets are generally influenced by speculation and the more uncertainty looms, the longer the markets could continue to be in this freefall.

This makes bear markets notoriously difficult to trade in especially for inexperienced traders because it is hard to tell when the bottom price has been reached for the rebounding price increase to begin. Pessimistic investors who believe prices will continue to fall in this system are referred to as “bears.” 

Even in a bull market, it can be easy to misinterprete the fluctuations and short-term dips as the end of the bull market.  This is why it is always important to consider the broader perspective to spot the right signs of a potential trend reversal.

Because of the different prospects of change in both market scenarios, it is possible to either gain or lose a lot depending on your short-term and long-term strategy. 

Some investors choose to level out their risk in a strategy known as dollar-cost averaging. Here you set an amount of money to invest every week or month (or however long your investment period is) regardless of whether prices rise or fall. 

Whether faced with the uprising horns of a bull market or the down turning claws of a bear market, it is important to always exercise due diligence with investments in order to protect your investment.

Categories
Technology

CoinMENA adds new features for the Middle East and North Africa.

CoinMENA has added a couple of new features to its application that were not available in the Middle East and North Africa region. 

The Bahrain-based cryptocurrency exchange, CoinMENA is the first regulated exchange in the region to adopt limit trading and allow users to withdraw Tether (USDT) stablecoins via the TRON TRC20 network. 

Limit trading allows users to set the price they want to sell or buy cryptocurrencies at along with where the trade will automatically be executed once the set price is hit. This system puts users in more control of what their money is to be used for. 

With over $80 billion in circulation, Tether is the stablecoin pegged to the US Dollar and is the third-largest cryptocurrency by market capitalization right behind Bitcoin and Ethereum. Tether withdrawals were previously only done on the Ethereum ERC-20 network but the TRON network comes as a cheaper alternative. 

In one year of operation, CoinMENA has experienced accelerated growth and now has 21 digital assets on its platform having added eight new ones just last month as more announcements are expected in the next month. 

A joint statement from CoinMENA’s co-founders, Talal Tabbaa and Dina Sam’an emphasized how delighted the company is to offer limit trading and an alternative network from which to withdraw Tether. 

The CoinMENA statement emphasized how the company is constantly working to enhance its premium user experience adding that these two new features were the most requested by users. 

“CoinMENA will continue to add new trading features and forge partnerships with regional and international stakeholders to provide the best experience possible to our users,” Tabbaa said regarding the next company direction.

Sam’an added: “We are working to deliver a comprehensive suite of products for our community because we ultimately see CoinMENA as more than just an exchange. Our latest features represent important milestones on our journey to becoming the MENA region’s preferred crypto financial services company.”

CoinMENA had recently also announced cashbacks as an incentive to motivate users to deposit funds into their crypto wallets using Classic and platinum cards from the region’s financial services super app known as Beyon Money. This, too, was an original innovation for the region. 

CoinMENA intends to be the simplest and most trusted asset exchange platform in the region by empowering new and seasoned investors to participate in the digital economy through buying, selling, storing and receiving digital assets and local currencies in a safe and secure space.

Categories
Business

African Media Agency partners with Technext’s Coinference 2022, the biggest cryptocurrency gathering in Africa

African Media Agency, a renowned pan-African Public Relations and Communications firm, has established a relationship with Technext, Africa’s premier tech-driven media organization. The collaboration intends to offer tales that demonstrate the utility and benefits of digital currencies while also promoting Coinference 2022, which will take place on October 3rd, 2022.

The goal of Coinference 2022 is to educate African audiences about cryptocurrency. The conference brings together stakeholders from across the continent, entrepreneurs, investors, regulators, academics, and blockchain enthusiasts. The purpose is to establish a community where knowledge is shared and ideas are exchanged about blockchain technology’s use on the African continent.

Blockchain technology has emerged as a critical instrument for establishing trust in online transactions. It allows users to store data and conduct transactions without the need for a central authority to coordinate or track things. The potential of blockchain technology is difficult to exaggerate, with businesses as diverse as healthcare and supply chains seeing its benefit.

“In this era of technological advancement, it is imperative for us to partner with a leading tech-driven media house like Technext. This helps us achieve our mission to tell stories about the innovations that drive economic growth on the continent” said Africa Media Agency CEO, Eloïne Barry. “This partnership is a strategic move to bring visibility to the new development in the financial space and create further awareness of crypto trading as an investment option”, she added.

With over 730 million mobile connections and more than 400 million internet users, Africa has been at the forefront of digital growth. This makes it a key center for blockchain and cryptocurrency development.

Speaking about the collaboration, Technext’s CEO David Afolayan said: “Our goal at Coinference 2022 is to further the exciting conversations that begun in 2021. This year, we plan to provide a visible platform for key players in the African blockchain tech ecosystem and crypto enthusiasts to discuss the possibilities of the blockchain for the continent, in order to position for future leverage. We are excited about the possibilities the partnership with Africa Media Agency will afford participants and stakeholders- An extensive platform for visibility and networking.”

African Media Agency’s support of the event is in line with its commitment to creating bridges that provide opportunities for services and products that seek to help Africa’s development. It also affirms the agency’s goal to highlight African players in the global space, thereby increasing their visibility as well as their competitiveness. For Technext, the purpose is to lead tech conversations and to include various major stakeholders in the tech and innovation ecosystem while telling stories in very relatable and simple language that anyone can understand.

Both organizations will collaborate closely to share professional insights on the newest developments in digital currency technology and to ensure that the stories of African entrepreneurs are shared with the rest of the world.