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Sub-Saharan Africa Leads Global Bitcoin Adoption

Sub-Saharan Africa has emerged as the global leader in Bitcoin adoption, as revealed in the Chainalysis 2023 Geography of Cryptocurrency Report. The report, which recently unveiled a dedicated chapter focusing on the region, highlights the remarkable surge in Bitcoin usage across sub-Saharan Africa.

One of the standout findings is that homegrown cryptocurrency exchanges within the region continue to outperform their global counterparts. In particular, Nigeria, with a notable 9% growth rate, stands out as one of only six countries worldwide where Bitcoin transaction volume witnessed year-on-year growth. This trend has been further accelerated by the Naira crisis, which has fueled the adoption of cryptocurrencies. Chainalysis charts how interest in Bitcoin and stablecoins has soared in response to the devaluation of the Naira.

While sub-Saharan Africa maintains the smallest crypto economy among all regions, accounting for just 2.3% of global transaction volume between July 2022 and June 2023, the region received an estimated $117.1 billion in on-chain value during that period.

However, a deeper analysis reveals that cryptocurrency has made significant inroads into key markets within the region and has become an integral part of many residents’ daily lives. Nigeria ranks second overall on the Global Crypto Adoption Index, with Kenya (21), Ghana (29), and South Africa (31) also performing strongly on the index.

Notably, in no other region is Bitcoin as dominant as it is in sub-Saharan Africa, where it constitutes a larger share of transaction volume than anywhere else globally. Sub-Saharan Africa’s residents are increasingly turning to Bitcoin as a form of “digital gold” and an alternative store of value. Many countries in the region have grappled with rising inflation and debt, making cryptocurrency an attractive option for preserving savings and achieving greater financial freedom.

The recent surge in regulatory clarity through the enactment of cryptocurrency legislation in several African countries has likely contributed to the growth of the local cryptocurrency industry. South Africa, in particular, has taken a proactive approach to regulation, reducing regulatory uncertainty and fostering a favorable environment for crypto trading. Luno, a leading cryptocurrency exchange, notes that investment is currently the predominant use case for crypto in South Africa. Over the past three years, the number of customers holding substantial crypto balances on Luno has increased by nearly 50%.

Moreover, Luno highlights that markets without regulatory bans tend to develop more responsibly, with exchanges operating transparently and engaging in productive interactions with regulators. This conducive environment bodes well for the continued growth of the cryptocurrency industry in sub-Saharan Africa.

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Business

Nigeria’s Crypto Transaction Volume Reaches $56 Billion, Surges by 9%

Nigeria has witnessed a significant surge in its cryptocurrency transaction volume, registering an impressive 9% year-over-year growth, reaching a total of $56.7 billion for the period between July 2022 and June 2023, according to a report from the New York-based blockchain research firm Chainalysis. This upward trend underscores the growing adoption of cryptocurrencies in Nigeria, even amidst the economic challenges faced by Africa’s largest economy, including currency depreciation and soaring inflation.

In contrast, Uganda, while smaller in terms of crypto usage, experienced remarkable growth with a staggering 245% increase in crypto transactions, amounting to $1.6 billion within the same timeframe. Meanwhile, Kenya witnessed a substantial decline, with crypto usage plummeting by more than half to $8.4 billion, as detailed in the report.

Factors Driving Nigeria’s Cryptocurrency Interest

Chainalysis highlights that the surge in interest in Bitcoin and stablecoins in Nigeria is closely tied to the significant depreciation of the Naira, especially during the extreme market fluctuations witnessed in June and July of 2023. President Bola Tinubu’s implementation of sweeping economic reforms, including the discontinuation of a popular yet costly petrol subsidy and the removal of certain exchange rate restrictions, contributed to the currency’s depreciation.

Moyo Sodipo, co-founder of the Nigeria-based cryptocurrency exchange Busha, emphasized, “People are constantly looking for opportunities to hedge against the devaluation of the Naira and the persistent economic decline since COVID,” a sentiment echoed in the accompanying report.

Cryptocurrency Regulation in Nigeria

It’s important to note that Nigeria had previously imposed restrictions in 2021, barring its banks and financial institutions from engaging in or facilitating cryptocurrency transactions. However, in the preceding year, the country’s financial regulatory body introduced a set of regulations concerning digital assets. This shift signaled Nigeria’s attempt to strike a balance between an outright ban on crypto assets and their unregulated use.

Nigeria’s tech-savvy and youthful population has eagerly embraced cryptocurrencies, utilizing options such as peer-to-peer trading on crypto exchanges as a means to circumvent the restrictions imposed by the traditional financial sector, as highlighted in the report.

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Business

Kenyan Attempt to Arrest Worldcoin Representatives Rejected by US Government

Kenya’s Interior Minister, Kithure Kindiki, has disclosed that the U.S. government recently intervened to prevent local law enforcement from arresting and detaining executives of Worldcoin. According to a report published in The Nation, the U.S. authorities insisted that the departing Worldcoin executives had not committed any wrongdoing that warranted their arrest. Instead, they pledged to make the executives available when required for any legal proceedings.

As previously reported by Bitcoin.com News, Kenyan authorities have taken a firm stance against the cryptocurrency project. In an effort to address concerns from the Kenyan government, Worldcoin representatives, led by Alex Blania, recently appeared before a parliamentary committee tasked with investigating the project’s activities.

Confirming the thwarted attempt to indefinitely detain Blania and his fellow Worldcoin executives, Minister Kindiki stated:

“They [Worldcoin executives] attempted to leave the country but were stopped and temporarily held in custody. However, the U.S. government intervened, asserting that they should be allowed to depart because they have not been found guilty of any crime. The U.S. government also gave assurances that they would produce them when required.”

The report also identified Thomas Scott, the legal spokesperson for Tools for Humanity, as the other Worldcoin representative who was detained alongside Blania.

The Kenyan government’s effort to apprehend the duo came shortly after Minister Kindiki attempted to link cryptocurrency-related activities to money laundering and terrorist financing. During his appearance before the parliamentary investigating committee, Kindiki reportedly used the Worldcoin incident to bolster his government’s position on cryptocurrencies in general.

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Business

Report: Kenyan Women Lead in Crypto Ownership in Africa, Rank Third Globally – 2023 Insights

A recently published report for the year 2023 sheds light on an intriguing trend in Kenya’s cryptocurrency landscape. Remarkably, 42% of cryptocurrency ownership in Kenya is attributed to women, placing the country in an impressive third position globally for gender equity in cryptocurrency ownership and securing the top spot in Africa.

This report sought to investigate gender representation disparities within the cryptocurrency and blockchain sector, particularly regarding leadership and influence. It revealed that the countries with the highest proportions of female crypto ownership are as follows:

1. Vietnam (47%)

2. Indonesia (43%)

3. Kenya and Colombia (both at 42%)

The inclusion of Kenya and Colombia in this list raised intriguing insights. Both nations share similarities with Vietnam and Indonesia, as they are developing economies where employment opportunities are often limited and compensation is comparatively lower than in developed nations. Moreover, traditional gender roles often place men as the primary breadwinners in these societies.

The report suggests that the significant presence of female crypto owners in these countries signifies a growing trend of women utilizing cryptocurrency as a means of generating supplementary income. This is particularly noteworthy in regions where the local economy and cultural norms offer limited avenues for women to achieve financial success.

The comprehensive breakdown of global crypto ownership by gender is detailed below:

Separately, the report examined the proportionality of female ownership relative to the overall population. Nigeria and South Africa emerged as countries demonstrating notable inclusion in this regard.

Furthermore, the report scrutinized women’s roles as leaders and influencers in the cryptocurrency community, revealing stark underrepresentation in these areas across the cryptocurrency and blockchain industries. Key findings included:

– A mere 6% of CEOs among the 50 blockchain companies analyzed were women.

– Men occupied 94% of top executive positions.

– Expanding beyond CEO roles, men held approximately 77.6% of leadership positions, while women accounted for just 22.4%.

– Chainalysis led the way in terms of gender inclusivity, with women comprising 46% of leadership roles. BitOasis and Coinbase also demonstrated notable female representation, with approximately 42% and 33% of leadership positions held by women, respectively.

Turning to the realm of social media, the report explored the top 50 influencers in the crypto space on Twitter. It revealed that a mere seven out of the 50 were women, highlighting a meager 14% female presence among prominent voices in the crypto sphere. Layah Heilpern achieved the highest rank in terms of reach and engagement among women, while Ripple CEO, Brad Garlinghouse, emerged as the most engaging crypto influencer overall.

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Technology

Nigerian Blockchain Firm Convexity Emerges as Finalist in Circle’s Pitch Event at BlackRock Headquarters, New York

Convexity, a Nigerian blockchain solutions company, is set to present its innovative humanitarian aid solution, known as CHATS (Convexity’s Humanitarian Aid Transfer Solution), at the prestigious BlackRock headquarters in New York, USA. This remarkable opportunity comes as a result of Convexity’s selection as a finalist in Circle’s pitch event.

CHATS was conceptualized by Adedeji Owonibii, one of Convexity’s co-founders, and his dedicated team, who were driven by the need to address the pervasive issue of fraudulent activities hindering efficient aid distribution in Africa. Despite receiving a staggering $1.2 trillion in aid since 1960, the African continent has witnessed little discernible impact from these funds.

CHATS has garnered support from reputable organizations, including the United Nations Children’s Fund (UNICEF), which has extended a grant to this groundbreaking initiative. This recognition underscores the importance of CHATS in revolutionizing the aid distribution landscape.

Uyoyo Ogedegbe, Convexity’s Investment and Business Development Partner, revealed that CHATS was a natural fit for Circle’s solutions pitch competition event, as it effectively addresses key challenges related to financial inclusion, transparency, technology, and aid distribution. 

The heart of CHATS lies in its use of blockchain technology to ensure transparency in aid distribution. Donors can now trace the disbursement of their contributions, right down to individual aid beneficiaries. This level of transparency empowers donors with a deeper understanding of the impact their contributions make.

For individuals without access to traditional financial services, CHATS offers innovative solutions, including the SMS token option, enabling beneficiaries to redeem their funds securely.

Convexity stands alongside five other companies as finalists in Circle’s solution pitch competition event. Among the notable contenders is Ebioro, hailing from Lithuania, with a focus on fostering financial independence through product and service development. Similarly, HesabPay’s solution aligns with the United Nations’ Sustainable Development Goal of eradicating poverty by facilitating direct aid payments to hard-to-reach beneficiaries, emphasizing traceability and speed.

The competition’s panel of esteemed judges includes Sunita Grote, Lead and Co-founder of UNICEF Ventures; Robbie Mitchnick, Head of Digital Assets at BlackRock; and Dante Disparte, Chief Strategy and Policy Officer at Circle. Although it remains uncertain whether one or all the companies will secure a $100,000 investment, Ogedegbe emphasizes that this competition represents a significant opportunity to attract global investors.

Convexity’s presence among the finalists underscores its commitment to innovation and addressing critical global challenges, with CHATS leading the way towards a more transparent and effective humanitarian aid distribution system in Africa and beyond.

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Business

The Nollywood Superstar NFT Collection Pays Tribute To The Industry’s Greatest

Nollywood, the Nigerian film industry, stands as the world’s second-largest film industry, just behind Hollywood in the United States. With an annual revenue of $600 million and employing over a million people, its continued growth significantly impacts Nigeria’s economy.

Jacob Odedekuma, Director of Media at Nollytainment Inc. USA, an entertainment company dedicated to preserving the legacy of Nollywood superstars, emphasizes three key qualities that define their mission: exclusivity, uniqueness, and novelty. These principles drive their latest endeavor, the Superstar NFT Collection.

This groundbreaking project’s inaugural edition pays tribute to three iconic figures in the Nigerian film industry: Richard Mofe-Damijo (RMD), Kate Henshaw, and Odunlade Adekola. The “Nollywood Superstars NFT Collection” aims to make cinematic history and immortalize these legends, with the official unveiling scheduled for October 1, Nigeria’s Independence Day.

This release marks the beginning of a series of collections designed to honor Nollywood’s big-screen icons. Each NFT in the first collection represents a meticulously crafted piece of Nollywood history, capturing the essence of these cinematic legends. The Nollywood Superstars NFT Collection offers fans and collectors a unique and interactive way to connect with the rich heritage of Nollywood.

On the launch day, 1,000 exclusive Nollywood super digital NFTs will be given away for free to randomly selected fans from the Nolly.Club. This gesture is a token of appreciation for the loyal supporters who have followed these superstars throughout their illustrious careers.

Despite these Nollywood icons’ global popularity, which boasts hundreds of millions of fans, only 10,000 exceptional collectors will have the privilege of owning these iconic cinematic pieces. This limited supply is intentional, creating scarcity and increasing future value for the fortunate owners.

To participate in this historic moment, fans are invited to preregister for the free NFT giveaway on the Nolly Club discord server at www.Nolly.club. Securing a giveaway spot ensures a place in Nollywood history. Those who miss out on the initial NFT collection can explore the NFT secondary market at www.magicEden.com to acquire their unique piece of Nollywood history.

As Nollytainment Inc. USA continues to pioneer innovation in the entertainment industry, this initiative not only celebrates Nollywood’s enduring impact but also promises future collections. These upcoming releases will enable fans to celebrate and immortalize more Nollywood superstars, offering them a piece of the digital legacy as collectible NFTs.

The Nollywood Superstars NFT Collection redefines fan engagement and digital collectibles, providing an unprecedented opportunity for fans and collectors to connect with the magic of Nollywood cinema.

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Business

Ennova Holdings Unleashes Upgrade “TIER” to Transform Africa’s Financial Landscape through Blockchain Innovation

In a resounding stride towards combating financial inequality in Africa, Ennova Holdings has announced the launch of the upgraded version of their ‘TIER’ app. With an unwavering commitment to revolutionizing financial possibilities through blockchain innovation, the organization is poised to empower individuals across the continent like never before.

Migrant workers in Africa frequently face significant challenges, such as being unable to bank owing to documentation concerns or having to pay high remittance costs. Ennova Holdings has set out on a mission to solve these issues front-on by developing revolutionary blockchain solutions via the TIER app. Their long-term goal is to tokenize assets for direct payments while also championing education and empowerment.

Ennova Holdings’ strategy is built around education. Recognising that knowledge is the key to unlocking Africa’s blockchain potential, the organisation is on a mission to teach blockchain technology to the youth of Africa and Asia. This effort aims to develop a new generation of leaders capable of guiding Africa towards economic prosperity and social cohesion.

The TIER app, at its core, is a multi-tiered solution offering user-friendly payment and remittance options that outshine traditional services notorious for their high fees. Deposit-only ATMs, facial recognition payments, and intuitive interfaces are among the features designed to make financial transactions accessible and rewarding for all.

CEO Ashiek Anandhaw emphasized the organization’s mission saying, “Ennova Holdings exists to create financial innovation for a sustainable future. With each step taken, every partnership forged, and every innovation introduced, we remain steadfast in our mission to redefine financial freedom, ushering in an era of shared prosperity for the youth of Africa and beyond.”

Ennova Holdings’ vision transcends geographical boundaries, as the organization plans to extend its impact to Southeast Asia. Their overarching goal is to cultivate an ecosystem that encompasses education, incubation, and empowerment across both African and Asian markets.

Currently, the AUC token serves as the utility token for the Advanced project, adhering to the ERC-20 standard. However, Ennova Holdings is poised to lead financial innovation by initiating testnet launches by the end of this year, with a mainnet conversion scheduled in the form of a hard fork during the first quarter of 2024.

Ennova Holdings’ long-term goal is to build a global credit rating agency focused on the unbanked population. This effort intends to close international financial gaps and promote financial inclusion, emphasising the organization’s commitment to transforming the financial environment in Africa and beyond.

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Business

Binance Faces Criticism Over Token Donations in Wake of Morocco Earthquake

Binance, the world’s largest cryptocurrency exchange, has been known for its philanthropic endeavors. In a recent announcement, Binance pledged to distribute BNB tokens, each valued at up to $100, to aid the victims of the devastating earthquake in Morocco. The initiative’s goal is to assist around 70,000 of its current users, with an estimated total value of up to $3 million. While this move garnered praise, it also attracted significant criticism.

The earthquake that struck Morocco on September 8, 2023, resulted in the tragic loss of over 2,900 lives and left more than 1,200 individuals injured. With a magnitude of 6.8 on the Richter scale, the earthquake caused extensive destruction.

Binance’s donations have raised concerns among many relief professionals due to the scale of the disaster and its aftermath. Critics argue that Binance should have provided readily usable resources like cash, food, and blankets, which are essential for the survivors. Additionally, some have expressed dissatisfaction with the fact that the assistance is limited to existing Binance customers, rather than extending help to all victims of the disaster. Iain Overton, executive director of the charity Action on Armed Violence, commented, “Those affected by the catastrophe will never hear of it, and those unaffected by the catastrophe may come away with a positive notion of [Binance’s] brand. It’s cynical at best.”

According to a survey conducted by Binance Charity, 43% of respondents still prefer traditional methods such as cash, checks, and bank transfers for donations. Approximately 33% expressed a preference for donating digital assets, highlighting the growing popularity of cryptocurrencies in philanthropy.

The 2023 Crypto Philanthropy Annual Report revealed that the majority of crypto contributions were directed toward Ukraine, with only 9.1% allocated to disaster relief.

Critics have labeled Binance’s move a “PR stunt,” citing the unfavorable timing. Overton emphasized that in post-disaster environments, people seek familiarity and immediate necessities such as food, shelter, medical aid, and space to grieve, rather than innovative financial tools like cryptocurrencies. An official from the International Federation of Red Cross and Red Crescent Societies stressed the importance of promptly providing aid that addresses people’s basic needs. A manager at a major aid agency remarked, “I get that they’re trying to do a good thing, but ultimately, it [appears to be] a bit of a PR stunt.”

In response to the criticism, Binance is currently verifying the eligibility of users residing in the Marrakech-Safi province to receive the funds. They have implemented a proof-of-address mechanism, which must be completed by September 9. Binance defended its approach, stating, “Crypto transfers can deliver urgent financial aid to disaster victims as they provide fast, low-cost, borderless, and transparent transactions. As needed, they can also be converted to local fiat currencies around the world.”

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Business

WorldCoin Reportedly Invested $4.8 Million in Cryptocurrency Education in Kenya

WorldCoin’s parent firm “Tools for Humanity” reportedly invested $4.8 million in cryptocurrency and ICT education in Kenya. This information was revealed by CEO Alex Blania while testifying before a Kenyan parliamentary committee investigating the company’s actions in the nation. These educational efforts, according to Blania, were carried out in partnership with various third-party agencies and partners.

Blania further disclosed the company’s engagements with several key stakeholders in support of their educational efforts. These stakeholders included Strathmore University, the Blockchain Association of Kenya, the American Chamber of Commerce in Kenya, the Africa Blockchain Centre, and New Hope Mukuru.

However, the Kenyan government and critics have raised concerns about the effectiveness of these education programs. They argue that there needs to be more evidence indicating that WorldCoin users in Kenya were adequately educated about the product and the purpose behind the collection of biometric data. This lack of awareness has sparked skepticism and led to scrutiny of the company’s operations.

Despite facing a recent suspension of its license, CEO Blania maintains that WorldCoin operates a legitimate business and is committed to increasing its investments within the East African nation. He expressed the company’s long-term dedication to Kenya, emphasizing its commitment to conducting business with honesty, compliance, and transparency.

Blania also addressed concerns about the potential misuse of user data collected during the registration process. He firmly denied any intentions of selling user data and stressed that the company always seeks the free and informed consent of individuals before processing their personal data. Additionally, he assured that all personal and biometric data collected in Kenya is securely stored on servers located in the United States, Italy, Germany, Poland, or South Africa.

Nevertheless, legal experts suggest that WorldCoin faces significant challenges in defending its case. Technology lawyer Meshack Masibo, in an interview with a local technology outlet, stated that the company would need to demonstrate that it collected and processed Kenyan users’ personal data with their explicit consent. Masibo added, “WorldCoin will be hard-pressed to prove that the users it was collecting data from were properly informed about who was collecting the data, why it was being collected, and the purpose of processing it.”

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Business

Opera Browser Unveils MiniPay Stablecoin Wallet for African Users

Opera, the popular web platform, has announced its forthcoming launch of MiniPay, a noncustodial stablecoin wallet integrated into its mobile web browser, specifically designed for its user base in Africa. MiniPay, built on the Celo blockchain, will enable African users to send and receive stablecoins using their existing mobile phone numbers.

Opera has been operating in Africa for 17 years, amassing a user base of over 100 million people on the continent. The rollout of MiniPay is set to commence in the coming months, with its initial launch in Nigeria.

Jørgen Arnesen, Executive Vice President for Mobile at Opera, explained, “Users in Nigeria, Kenya, Ghana, and South Africa have expressed ongoing concerns about high transaction fees, unreliable service uptimes, a lack of transparency regarding transaction progress, and limited access to mobile data.”

MiniPay aims to address these concerns by offering sub-cent transaction fees and integrating with users’ Google credentials to facilitate wallet onboarding and backup. It has also incorporated local payment methods, including Airtime and M-Pesa, as well as traditional bank transfers, enabling users to easily convert stablecoins to local currency and vice versa.

Arnesen highlighted that Opera developed the MiniPay browser as a data-saving technology that allows users to browse the web and access information without consuming a significant portion of their monthly income.

Furthermore, Celo, with its substantial African user base, views the integration as a gateway to the development of Ethereum-compatible decentralized applications for MiniPay.

Arnesen added that upon its launch, MiniPay will support Mento’s stable Celo Dollar (cUSD), which is pegged to the U.S. dollar’s value. This approach minimizes user confusion by eliminating the need to juggle multiple currencies within the wallet.

In April, Opera introduced generative artificial intelligence integration in its latest browser update, called AI Prompt, offering users contextual prompts for web pages and highlighted text. Additionally, in December 2022, Opera rolled out a suite of security tools aimed at safeguarding users against malicious actors in the emerging Web3 landscape.