Author: Staff

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Business

South Africa completes phase two of CBDC trials.

As the world explores the capabilities of blockchain technology to change our digital financing structures, South Africa has seen a breakthrough in the implementation of a Central Bank digital policy following the conclusion of a technical Proof-of-Concept phase. The project is to be used by the South African Reserve Bank (SARB) to highlight the benefit and risk implications of distributed ledger technology (DLT) adoption in financial markets.

In an undertaking called  Project Khokha, SARB has completed the second phase of its wholesale Central Bank Digital Currency (wCBDC) trials. The project involved some of South Africa’s largest banks as they tested the viability of an interbank payments settlement system based on a wCBDC. 

A wholesale CBDC is basically a digital representation of government-backed, fiat money that is issued by the Central Bank and used by banks & other financial institutions to settle large volume transactions. Central Bank Digital Currencies store and record transactions on digital ledgers running on blockchain technology. With over 80 countries around the world developing CBDCs, the PwC Global CBDC Index and Stablecoin Overview 2022 ranks South Africa among the top ten countries globally pursuing this venture.

More information on CBDCs can be found here. 

The first phase of Project Khokha kicked off in 2018 and experimented with Decentralized Ledger Technology (DLT) for interbank payments’ settlement featuring a system that tokenized the Rand on a private ledger. The project was successful in mirroring the existing South African Multiple Option Settlement (SAMOS) that facilitates the real-time settlement of domestic individual large payment transactions, large retail transaction batches, and bond and equity market settlement obligations.

The focus of the subsequent Project Khokha 2 (PK2) was on a wholesale CBDC. In February 2021, the second phase of the Khokha project was launched. The project involved testing DLT with trading and settlement in a proof of concept environment. There were several names from the industry as a part of the project: FirstRand, JSE Limited, Absa, Standard Bank and Nedbank together formed the Intergovernmental Fintech Working Group (IFWG). 

The trial involved the development of two concurrent platforms; one to manage the digital currency on the Central Bank’s end while the other served as a decentralized trading platform for the wholesale settlement token (wToken) to be transferred between commercial banks. This included a two-way bridge allowing transfers to be made across the two platforms as well. 

DEMO: Project Khokha – South African inter-bank payments settlements system

All this change, however, needs to be structured and SARB pointed out that new standards and support systems will be needed and these new platforms will have to be integrated with the existing bank systems for the implementation of the technology. The cost of this implementation and integration is expected to fall on the banks. 

While the new technology would be used to streamline multiple processes, SARB noted that it could threaten existing commercial bank systems including the widely used Real Time Gross Settlement (RTGS) system. On the other hand, the experiment showed that the CBDC and its DLT system could possibly co-exist thereby reducing costs and complexities in the financial sector. 

In his remarks on the project, SARB Governor Lesetja Kganyago said that a wCBDC can’t be experimented upon in isolation from the wider financial industry. 

“We recognise that digital currency innovation cannot be explored in isolation. The SARB continues to draw on the insights emerging from various initiatives, including (but not limited to) our ongoing study into the feasibility, desirability and appropriateness of a retail Central Bank Digital Currency (CBDC), to enrich our understanding of digital currency implications,” he commented.
In the long run, having a more streamlined system is in the interest of ensuring a level playing field for all participants and the Governor added that the Bank had gained great insight through this practical exploration. Given that the country’s economic rival, Nigeria, launched a retail CBDC in the eNaira last year, more research is also being carried out into how desirable or appropriately retail CBDC technology can be implemented in South Africa.

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Opinions

Most Common Security Concerns for the Web 3.0 World

Cisco Talos, an intelligence group that gives intelligence and threats updates has revealed the top security risks in Web 3.0. This latest iteration of the world wide web will include the immersive 3-D experience known as the “Metaverse”, a virtual reality environment where people can explore, shop, play games, spend time with friends, attend a concert, or take part in business meetings.

“As the internet morphs into the metaverse a whole new range of opportunities, capabilities and features are opening up to users, institutions, governments and businesses. Despite all these possibilities, Web 3.0 is also seeing increasing security threats that can be exploited by hackers and criminals. The team of researchers at Cisco Talos has done a deep dive to highlight the most common security challenges, driven by cryptocurrency, blockchain technology, decentralized applications, and decentralized file storage. Plus, they offer insights on what users should look out for to stay safe and protected while online,” said Fady Younes, Cybersecurity Director, Cisco Middle East, and Africa.

Below are the top 5 common security concerns for Web 3.0.

  1. ENS Domains

Because of the growing popularity of digital currency, more Ethereum Name Service (ENS) domains are being used. The ENS domain is a simple name that is used to locate the linked bitcoin wallet address. As a result, third parties have trademarked and resold famous domain names. Consequently, there’s nothing stopping the owner of an ENS domain from using it to dupe naïve users into thinking they’re dealing with a reputable company. These ENS domains also point to wallet addresses, allowing anyone to view the contents of the wallet connected with the name at any moment.

  1. Social engineering

The risk of social engineering is always present while learning a new technology, and Web 3.0 is no exception. The majority of security incidents impacting Web 3.0 users are caused by social engineering tactics such as wallet cloning. Users should be wary about being duped into sharing their “seed phrase.” A user can restore their wallet and all its contents if their bitcoin wallet is lost or destroyed by utilizing a 12 to 24-word “seed phrase,” which is effectively their private key. Anyone with access to a cryptocurrency wallet’s seed phrase (private key) can clone it and use it as their own. As a result, many fraudsters looking to steal cryptocurrencies or non-fungible tokens (NFTs) look for a user’s seed phrase.

  1. Beware of fake customer support agents

Another tactic attackers employ to remove users from their seed phrase is to impersonate a customer service worker who responds to publicly posted Twitter or Discord server queries. Criminals keep an eye on these channels and will contact people to offer “assistance” in exchange for their seed words.

  1. Whales

Whales are high-profile cryptocurrency accounts that possess significant amounts of cryptocurrency or NFTs. According to some estimates, 40,000 whales possess 80% of all NFT value, making them a desirable target for cyber thieves. Scammers realize that many lesser investors keep an eye on these whales’ wallets, therefore they will use social engineering to persuade them to invest in their own fictitious enterprises. The source code for the smart contract in most valid NFT projects is readily available. For potential investors, the fact that the code for this project has not been provided should be a red flag.

  1. Malicious smart contracts

While some attackers target weaknesses in valid smart contracts, others create their own malware and upload it to the blockchain as malicious smart contract code. Malicious smart contracts feature all of the regular smart contract functions, but they operate strangely.

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Business

Russian Chamber of Commerce Suggests Using Cryptocurrencies in Settlements With Africa

Sergey Katyrin, President of the Russian Chamber of Commerce and Industry, wrote a proposal to Russian Prime Minister Mikhail Mishustin outlining a list of ideas to improve commercial connections with African countries. The head of the Russian Board of Trade campaigns for alternative payment methods.

Katyrin insists;

“It seems appropriate to instruct the Ministry of Finance, together with the Central Bank, to ensure the conclusion of intergovernmental agreements with African states on the use of national currencies and cryptocurrencies in mutual settlements and payments.”

The official is proposing that the Federal government establish a new export-import bank and a trust fund to support small and medium-sized businesses’ export efforts to Africa. He also wants the Ministries of Industry and Trade and Economic Development to establish trade missions and free trade zones in African countries with the most potential for expanding ties.

Katyrin is encouraging the two departments to develop a new payment settlement process that includes cryptocurrency for both external and internal payments. The method can be used to settle payments for natural resource concessions, investment projects, export operations, and other types of payments. He also advises that a Russia-Africa Trading House be established.

The Russian Federation’s expansion of this type of collaboration with “friendly territories,” according to the Head of the Chamber, is critical. His ideas come as Western sanctions imposed in response to the Ukraine conflict continue to restrict Moscow’s access to global finance and currency reserves held in foreign institutions.

The constraints are persuading Russian officials that crypto-assets can assist the country in re-entering global markets and substituting other national and digital currencies for the US Dollar and the Euro. While the Bank of Russia is wary of utilizing cryptocurrencies to get around sanctions, the Finance Ministry is spearheading the change to legitimize them, claiming that the fines are motivating Russia to build its own crypto market infrastructure.

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Business

Arrest Warrant Issued for Pio Crypto Center Proprietor Fred Ntabazi.

The Commercial Court of Uganda has granted an order for an arrest warrant against Fred Ntabazi following a recent ruling in a hearing to determine whether Ntabazi should  furnish court with security to appear before it. This suit arose from a case brought forward by Ssengendo Paul and Nakungu Gladys, a couple who sued Fred Ntabazi and his company, Pio Crypto Center Investments Limited jointly for breach of contract, fraud, and recovery of money to the tune of UGX 791,000,000, interests and profit, damages, tracing orders and costs of the suit.

According to the couple, Fred Ntabazi convinced them to invest a combined sum of UGX 175,000,000 in the business of online forex trading with Pio Crypto Center Investments Limited and promised them a return of 10% per week for a period of 48 weeks. Fred Ntabazi failed to pay the couple the promised sum, and instead tried to coerce them to relinquish their contracts with the company and instead invest with a SACCO Ntabazi was carrying on the same business with.

The SACCO had been started following claims by Ntabazi that banks, and later the Government, purportedly did not want people to have money and that they were the ones frustrating the payment process onto people’s accounts. Upon this foundation, the Kampala Digital Financial Commodities Traders Cooperative Society Limited (KDFC) was formed for investors to transfer their money since the laws of Uganda were “a little relaxed on Sacco operations”.

The couple however had other plans. Along with 33 others, a police case was filed and they opted to institute both a civil and criminal suit against Ntabazi prompting him to go on the run. According to the pleadings in the case, Ntabazi currently has no known place of residence and does not appear before court. He also reportedly fled Kampala and was spotted in Kisoro.

For this reason, the couple decided to apply for a ruling against Ntabazi for security i.e orders that an arrest warrant be issued, attachment of his bank accounts, that he deposits UGX 791 million in court as security and that 13 of his vehicles are attached all to ensure that Ntabazi appears in court for the main suit and that payment of the outstanding debt is assured in the event the couple wins the case.

Court granted the first order for the arrest as it was established that he truly is on the run and this was interpreted as an intention to delay and frustrate court process. However, the court declined to attach his accounts and his vehicles as the estimated value of these assets was not provided by the plaintiffs (the couple). The 13 cars the plaintiffs wanted to attach were discovered by the Plaintiffs from Uganda Revenue Authority (URA) transaction records and the court considered this insufficient evidence of ownership. Furthermore, the judge held that the law requires that the value of the assets be attached in order to ascertain that the value of the assets is not much higher than that of the claim.

Who is Fred Ntabazi?

Self-proclaimed “Bishop” Fred Ntabazi was the lead preacher at One Light International Ministries, a church situated on the fifth floor of Padre Pio Building. He reportedly sourced his first recruits from his “flock”. According to sources, the self-professed bishop had masses borrowing money from banks, saving schemes and loan sharks while others sold land, cars, houses and cattle to invest with him.

A source called Caleb Rutetebya was quoted to have said that clients would be asked to invest in the business with a minimum of UGX 5 million and that this would after two weeks start fetching the client 10% (UGX 500,000) every week as interest for a year. .

Prior to this case, there have been reports of similar dubious dealings by Ntabazi dating back to December 2019. An earlier report by New Vision of bogus crypto deals he was peddling. According to the report, there were over 1000 people scammed including high profile police officers, pastors and business persons who he lured into the business venture with the promise to make a quick buck. However, it was suspected that Ntabazi enjoyed the protection of some senior government officials because his victims were hesitant to come forward to report the conman.

It is worth noting that despite its name, there is no indication that the Pio Crypto Center was actually engaged in any crypto trading and according to the source, his modus operandi was to use money from new clients to pay old clients. 

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Business

Tanzania is ‘Finalizing a Business Case for Evaluation of Crypto Assets,’ Says Finance Minister

Tanzania’s top financial sector officials recently called for a clearer global consensus on Central Bank Digital Currencies (CBDCs) and crypto-assets at a virtual conference organized by the International Monetary Fund (IMF), as Tanzania contemplates its final decision about cryptocurrencies. The Finance and Planning Minister, Mwigulu Nchemba has now revealed that the Bank of Tanzania (BoT) is finalizing preparations for a business case for the establishment of a CBDC in Tanzania and evaluation of crypto assets after recording significant progress in formalizing digital financial services.

Prof Florens Luoga, the Governor of the Bank of Tanzania, emphasized the importance of strong regulations as cryptocurrencies have grown in popularity, with a variety of ramifications, with the IMF stating that its duty is to promote the construction of a “strong, comprehensive, and consistent regulatory framework.”

However, the IMF, represented by Deputy Managing Director Bo Li, stated that it “neither encourages nor discourages” countries from issuing CBDCs, but rather offers technical assistance to those who do so on design features that support public policy goals alongside efficient, resilient, and competitive payment systems.

Furthermore, the Bretton Woods institution stated that each country’s central bank should define its own key objectives before implementing CDBCs, “since there is no universal formula for all countries.” The institution also stressed the importance of striking a balance between consumer privacy protection and financial inclusion and integrity.

Many inhabitants in Africa, according to the IMF, utilize peer-to-peer platforms as their primary entry point into bitcoin since they lack access to centralized exchanges.

Sourced from BiTKE

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Business

Kenyan Startup Partners with Crypto Rating Platform, Evai.

Kenyan startup, BitLipa has announced a partnership that will allow its users access to the AI-Powered Crypto Rating Platform, Evai. This partnership is a protective and developmental measure aimed at helping users avoid getting scammed and cheated while also providing useful market insights into the lucrative and expanding world of cryptocurrencies. 
BitLipa is a Kenyan cryptocurrency exchange startup that allows users to convert fiat money (in this case, Kenya Shillings) to digital currencies such as Tether (USDT) and Bitcoin, Ethereum and vice versa. It makes use of the mobile money payments app, M-Pesa, to on-ramp clients into the crypto world (receive crypto coins in exchange for fiat money) and off-ramp clients back into the fiat world (spend cryptocurrency for something that is not a digital asset).

Evai is a fully decentralized artificial intelligence (AI)-powered crypto rating platform that aims to assist people in making smarter crypto investing decisions at minimum risk. As the world’s first impartial crypto-asset rating platform, Evai uses AI and machine learning to evaluate each asset’s live data against several critical KPIs, giving an unbiased rating based on performance. 

How Evai Works. 

Evai uses a ranking system where crypto projects are marked as A1, A2, A3, B1, B2, B3, C1, C2, C3, D, and U with A1 representing an exceptional crypto coin or token while D and U represent distressed and unratable crypto. The platform continuously assesses crypto assets and gives them unbiased ratings based on peer-reviewed financial research and economic principles with indicators like liquidity, volatility, momentum, utility, behavioural bias, overextension, market risk, and market capitalization. 

By harnessing the technological advancements in AI and machine learning, Evai is thus able to constantly optimise the rating system to provide investors with impartial data informing their next investment decisions.

Perks of the Partnership.

The partnership seeks to give BitLipa users free access to the Evai rating platform which ordinarily requires a $50 monthly access fee. On top of the free access,  20 Evai tokens will be distributed to 2000 lucky BitLipa users. To protect users from market value fluctuations, these Evai tokens will be locked (stored on their electronic wallet but not traded and transacted) for at least 12 months giving some long-term stability.

This means that BitLipa users will be able to trade in the Evai- rated crypto and gain access to free educational materials on the Evai platform with the hopes that this information will lead to better trading decisions and higher returns. With over 80% of Africa’s population earning $10 or less a day, BitLipa co-founder and CEO, Apollo believes this opens up an investment opportunity where such small amounts can be compounded over time to give life-changing earnings. 

The mutually beneficial partnership will see Evai extend its user base to Kenya and ultimately the rest of Africa while BitLipa looks to add more value and credibility to its platform. 

Kenya is one of the leading countries in peer-to-peer cryptocurrency trading and crypto scams are nearly as old as the concept of cryptocurrency. A statement from Kenyan cabinet secretary, Joe Mucheru pointed out that approximately $120 million was lost to crypto scams in the last financial year. It is on this backdrop that he called for collaboration between media groups, fintech service providers and the government to protect citizens from fraud. 

By empowering Kenyans to distinguish between secure crypto projects and scams, the partnership between BitLipa and Evai is a significant step towards building trust in blockchain-based projects and accelerating crypto adoption. 

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Business

TON Foundation To Launch Stablecoins in Three African Countries.

The Open Network (TON) Foundation is in talks with three governments in Central Africa to launch localized stablecoins on its blockchain. The countries of Cameroon, the Democratic Republic of Congo (DRC) and the Republic of Congo (Congo-Brazzaville) contacted The Open Network (TON) to help launch their first crypto initiatives through the use of stablecoins. A successful launch could see Africa add to a growing trend that has seen the continent branded as a new frontier with the highest crypto adoption.

As the name suggests, stablecoins are digital tokens designed to combat the volatility of conventional cryptocurrencies by fixing their value to that of a fiat (traditional) currency like the US dollar or a physical asset like gold. As long as the value of the asset a stablecoin is tied to remains stable, that coin will also remain stable. Opting for stablecoins thus enables the countries to get into the world of crypto while minimizing the risk associated with the volatility of most cryptocurrencies.

Joining a shortlist of countries building crypto solutions on a decentralized blockchain, the three countries detailed their initial thoughts on cryptocurrencies in separate press statements including how they plan to adopt cryptocurrency and blockchain-based solutions to drive economic progress in their respective countries.

The plan is to launch localized stablecoins on the TON blockchain and this is emphasized as NOT being a central bank digital currency (CBDC) project. Looking at the different kinds of digital assets on the market, a hybrid approach is being considered in DRC with mass-market, regionally applicable and relevant stablecoins like USDC and USDT used by consumers while CBDCs are to be largely used for interbank settlements.

“We’re not attempting to replace a national currency, and we’re not aiming to do a CBDC, which is obviously run by a central bank,” an anonymous source from DRC told Forbes. As such, the adoption strategies in these countries are not led by a central bank but rather by the communication ministries with Cameroon’s move being driven by the Ministry of Posts and Telecommunications, DRC by its Ministry of Digital Economy while in the Republic of Congo, the Ministry of Posts, Telecommunications and Digital Economy is in charge. 

The priority of the three states is to adopt a blockchain network that is both inexpensive for transactions and relatively accessible and TON has an advantage here because of its focus on integration with messaging app, Telegram and the distribution benefits it brings.

The involvement of Telegram was not at random as The Open Network (TON) was initially developed by the Telegram team and called Telegram Open Network. The Network was later handed over to the open community and serves as a blockchain that relies on a proof-of-stake (PoS) consensus mechanism. 

In a move similar to how WhatsApp allows users in India and Brazil to send money, this initiative will leverage features from the privacy-focused messaging app, Telegram to allow for crypto-based peer-to-peer payments through bots in the app. The integration will offer swift transaction speeds and a user-friendly and familiar interface for easy onboarding of users with low fees. 

**WhatsApp’s payments feature currently supports only fiat.**

Understanding the TON and Telegram connection. 

While September 2021 saw El Salvador become the first country globally to adopt bitcoin as legal tender and in October 2021, Nigeria became the first African country to launch a CBDC with the eNaira, it remains to be seen if or how stablecoin products will be interoperable with existing public cryptocurrencies and existing mobile money structures.  

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Business

Nexo and Mastercard launch ‘world first’ crypto-backed payment card

Nexo, a cryptocurrency lender, has announced a partnership with Mastercard (MA.N) to introduce the world’s first “crypto-backed” payment card on Wednesday. As digital assets grow more widespread, it is the latest step by crypto and established banking networks to link together. Nexo claims that the card, which is initially only available in a few European countries, allows users to spend without having to sell digital assets such as bitcoin, which are used as collateral to back the credit issued. The majority of traditional credit cards are unsecured and have a pre-determined credit limit.

“The card is linked to a Nexo-provided, crypto-backed credit line and can be used at 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the fiat value of their crypto assets,” Nexo said.

“The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month,” Nexo added.

There are no constraints on how much a consumer can spend or withdraw from an open credit line, and interest is only charged on the credit that is spent. Customers with a loan-to-value ratio of 20% or less continue to pay zero percent interest.

“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.

Nexo’s card is issued by DiPocket, an electronic money company.

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Amber Group Business

Amber Group – March Recap

Named one of CB Insights’ 2022 Blockchain 50, an annual ranking of the most promising blockchain and crypto companies in the world.

Announced the appointment of Ehsan Haque as the General Counsel for the Europe, Middle East and Africa (EMEA)  region.

CEO Michael Wu selected as a recipient of the “Top 100 CEOs in Innovation Award 2022” by Word Biz Magazine.

Product Development and Partnerships

Participated in Mina Foundation’s token sale, EthSign’s seed round, and Zecrey protocol’s angel round.

In the News

World Biz Magazine:Michael Wu, CEO of Amber Group – interview WBM Top 100 Innovation CEO.

CNBC: For crypto to be adopted globally, we will have to comply with regulators: Crypto-trading platform.

Bloomberg: Bankers Who Stay in Hong Kong Are Rewarded With a Pay Bonanza.

Economist:EthSign raises $12 million in stable coin led by Sequoia Capital India, Mirana Ventures.

Forkast News: From crisis currency to consumer adoption: What next for crypto?

CoinDesk: Mina foundation raises $92M to accelerate adoption of Zero-Knowledge Proofs.

Cointelegraph: If the glass slipper doesn’t fit, smash it: Unraveling the myth of gender equality in crypto.

AMBCrypto: Amber Group strengthens management team with Ehsan Haque as EMEA General Counsel.

CoinCu: Zecrey protocol has raised $4M in an angel fundraising round.

Chain Debrief: Is the user experience in DeFi bad? Opportunities, challenges and how to see growth in DeFi.

Medium: Reproducing the $APE airdrop flash loan arbitrage/exploit.

Medium: Non-fungible trends.

Events and Media Appearances

CEO Michael Wu joined Forkast News to discuss crypto’s consumer adoption and what’s next for crypto.

CEO Michael Wu joined CNBC Street Signs Asia to share how Amber Group seeks a balance between regulation and crypto development.

CEO Michael Wu gave an interview with Economist Impact at Technology for Change Week on how to stay ahead of the curve in the fintech space.

Managing Partner Annabelle Huang joined Economist Impact’s Asia Trade Week to discuss the future of crypto as payment in Asia.

Managing Partner Annabelle Huang joined Avalanche Summit to discuss the opportunities and challenges in DeFi.

Managing Partner Annabelle Huang joined Goldman Sach’s panel discussion on “Digital assets – Investing in the future” to celebrate International Women’s Day.

Managing Partner Annabelle Huang gave a guest lecture on DeFi and Web3 for the International Finance class at Singapore Management University.

Managing Partner Annabelle Huang joined the DIG FIN VOX podcast to talk about Amber Group’s move to Singapore and into retail.

CSO Dimitrios Kavvathas joined Blockchain Africa Conference 2022 to discuss institutional investment in crypto.

CSO Dimitrios Kavvathas joined FinTech Festival India at a panel discussion on “De-Fi – A better solution for peer-to-peer lending”.

CSO Dimitrios Kavvathas joined the World Blockchain Summit in Dubai at a panel discussion on “Fostering the global crypto ecosystem”.

Europe Managing Director Sophia Shluger delivered a keynote speech on digital wealth at Blockchain Africa Conference 2022. 

Europe Managing Director Sophia Shluger joined the CryptoCompare Summit in London to discuss the building blocks of the new digital economy.

Europe Managing Director Sophia Shluger joined the FundFocus Europe 2022 conference to discuss the foundation for the widespread institutional adoption of cryptocurrency. 

Latin America Managing Director Nicole Pabello joined the Ethereum Rio conference to discuss the LATAM Ecosystem in the world.

Institutional Sales Director Justin d’Anethan joined EmergentX’s Annual Digital Asset Summit to discuss the institutionalizing of the digital asset industry. 

Managing Director Ben Radclyffe joined Credit Suisse’s Asian Investment Conference to discuss the spillovers between crypto and equity markets.

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Business

Cardano Announces Ariob Incubator for Africa.

Cardano’s innovation engine, Project Catalyst, has launched the Ariob business incubator scheme in a partnership with the Ethiopian pan-African innovation hub, Ice Addis. With a name translating to ‘a collection of stars’, the Ariob incubator hopes to give start-ups access to venture-building expertise and resources to help develop products that will shine across Africa while solving real-life challenges. 

This is the most recent of efforts by the Cardano developer, Input-Output Global (IOG), with previous projects including cooperation with the Ethiopian Ministry of Education to validate students’ academic credentials using technology built on Cardano. IOG is also collaborating with World Mobile in Zanzibar to use blockchain technology to enable disconnected connectivity and access to key online services.

Details on these projects are available here.

How It Works. 

The Ariob incubator serves as a new tool to develop innovations and ecosystems driven by Cardano using the resources provided by one of the largest decentralized innovation funds in Project Catalyst. 

The Ariob incubator program is set to offer services aimed at realizing creative potential, testing ideas, and using prototypes to find the best product using Cardano to create solutions to real-life challenges in Africa.  

With each funding round, the community presents challenges across a range of subjects related to Cardano. These challenges are then answered by the community who present project proposals defining solutions and clear plans. The community then votes on the proposals presented and selects projects to receive funding. The Ariob Incubator program intends to evolve these proposals into the most competitive Africa-centered Catalyst startups. 

In a release from Cardano founder Charles Hoskinson, it was stated that the Ariob incubator is expected to accelerate the growth of the Cardano ecosystem while harnessing the potential of Africa’s 1.3 billion population to deliver cutting edge programs for the continent. 

Project Catalyst Incubator for Africa. 

The diversity of this 1.3 billion population opens up many possible fields of application for technological advancements and this is why Africa is seeing a huge acceleration in adopting new technologies such as blockchain. The fact that the older (and in some cases outdated) systems had a hard time reaching Africa also makes it far easier for such technological advances to take hold. 

This further aligns with Cardano development company, IOHK’s RealFi (Real Financing) initiative. RealFi aims at providing new ways to extend financial services to those who need them the most. The Ariob environment provides education, mentorship and collaborative opportunities on top of the funding to enable people to realize and implement their entrepreneurship and innovative ideas from a fertile ground with the potential to transform both industry and society.  

With the Ariob Incubator open to all Africa-focused businesses, projects joining include CheCha, a digital USD voucher system from Zimbabwe, Thrift Finance, a decentralized thrift savings system governed by THRIFT token holders, DirectEd, which is developing solutions to facilitate scholarships for students in low-income countries and Waya Collective, a decentralized autonomous network of product and service entreprises. 

IOHK Director of African Operations, John O’Connor, announced the first round of loans to Kenyan SMEs, emphasizing Cardano’s RealFi’s future potential. Cardano founder Charles Hoskinson announced that the business wants to offer peer-to-peer (P2P) financing across Africa this year, beginning in Kenya. This is seen as part of a larger attempt to close the gap between developed and developing nations.