Author: Staff

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Business

African fintech and Web3 leaders to convene at the Africa Money and DeFi Summit in Ghana

In a bid to catalyze Africa’s tech revolution, the eagerly awaited Africa Money and DeFi Summit 2023, backed by Amazon Web Services, Pivo, and Fonbnk, is all set to take center stage in Accra, Ghana, on October 3rd and 4th, 2023.

This upcoming summit, unlike any other, promises to bridge the gap between African fintech and Web3 industries and global players, sparking discussions on the latest trends, challenges, and opportunities that lie ahead in this dynamic landscape. The summit is also bringing together industry experts, investors, regulators (including the esteemed Bank of Ghana), and visionary innovators, all with one shared goal – to steer Africa toward a digital future. At the heart of the summit lies a strong focus on nurturing collaborations and attracting investments, unlocking the true potential of technology for the continent.

Africa has been garnering global attention as the world’s fastest adopter of blockchain technology. A recent report by PwC & Emurgo Africa in 2023 highlighted the remarkable pace of blockchain adoption across the continent. With a staggering 1,668 percent increase in blockchain funding in 2022, African countries like Kenya, Nigeria, and South Africa are leading the charge. The numbers speak volumes: funding soared from $5.165 million in 2021 to an impressive $91 million in 2022.

This year’s event is capitalizing on the fast blockchain adoption by diving into a broad spectrum of topics ranging from fintech and Web3 to regenerative finance (ReFi), cryptocurrency, insurtech, and cybersecurity, the summit will offer an unrivaled opportunity to gain invaluable insights into the rapidly evolving landscape of Africa’s digital transformation.

The Africa Money and DeFi summit has an extraordinary lineup of keynote speakers, who will inspire, challenge, and set the tone for the summit. Engaging panel discussions will ignite spirited conversations, bringing diverse perspectives to the forefront and fostering a deeper understanding of the vast potential that lies within Africa’s fintech and Web3 spheres. Not just that, masterclass sessions will offer attendees an immersive learning experience, led by seasoned professionals, who are trailblazers in their respective fields. Beyond the enriching discussions and knowledge-sharing, entrepreneurs, investors, and tech enthusiasts from all corners of the globe will converge to connect, collaborate, and forge powerful partnerships that can reshape the future of African tech innovation.

The Summit has already served as a springboard for success, driving impactful collaborations and propelling ventures to new heights. Take, for instance, the inspiring journey of Revio, a South African start-up that seized the opportunity to present its innovative solution at the 2022 edition. As a result of the exposure gained, Revio captured investor interest, securing over 12 client leads and engaging in strategic partnerships.

Investor-ready ventures developing solutions in fintech, DeFi, and Web3 technologies can now apply for the Investment Showcase at Africa Money and DeFi Summit. Companies will have the opportunity to showcase their venture, network with other entrepreneurs, and learn from industry experts in front of an audience of African-focused tech investors. Interested businesses should apply HERE by September 8th, 2023.

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Business Social Good

Kenya Suspends Worldcoin Project Due To Safety Concerns

The Worldcoin project, a new cryptocurrency and digital identity initiative, has hit a roadblock in Kenya, with the Government suspending all local activities associated with it. The Minister of Internal Security, Kithure Kindiki, announced the suspension on August 2, citing concerns over the collection of crucial identification information, such as iris scans, in exchange for a digital ID.

Minister Kindiki took to Facebook to inform the public about the suspension of Worldcoin’s activities in Kenya. The Government’s primary concern is the collection of sensitive identification information through iris scans, which has prompted relevant security, financial services, and data protection agencies to initiate inquiries into the project’s authenticity and legality. Until these agencies certify the absence of risks to Kenyans, the project will remain halted.

“Relevant security, financial services, and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities,” interior minister Kithure Kindiki said in a statement.

The statement from the Kenyan Government also emphasizes that anyone involved in furthering, aiding, abetting, or engaging in the activities associated with Worldcoin will face appropriate action. This indicates that the authorities are taking the matter seriously and are willing to take necessary measures to protect citizens’ data and financial interests.

Despite the suspension, Worldcoin witnessed massive interest in Kenya, with over 350,000 Kenyans signing up for the project as of Tuesday. The allure of free cryptocurrency tokens, worth approximately 7,000 Kenyan shillings ($49.09), attracted a significant number of participants. 

The Worldcoin project has not been limited to Kenya alone, as people from various countries, including Uganda, Germany, Spain, and France, have flocked to registration sites to participate in the venture. As the project gained international attention, it also came under scrutiny in other countries, such as Britain and Germany prompting questions about its compliance with local regulations and data protection laws.

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Blockchain

What is Solana?

Decentralized applications, or dapps, are widely regarded as one of the critical use cases for blockchain technology. In the last few years, dapps have come on in leaps and bounds, with dapp developers launching everything from games to decentralized finance (DeFi) platforms on blockchain and a significant increase in user interest.

However, most of these dapps run on Ethereum, which has struggled to keep up with rampant demand leading to congestion on the network and soaring transaction fees.

On the other hand, Solana, a blockchain platform that had its beginnings in 2017, is aiming to step into the breach and succeed where Ethereum is currently struggling.

What is Solana?

Solana is an advanced open-source blockchain project that looks to leverage several breakthrough technologies to power the next generation of dapps.

The project is focused on providing a highly scalable, secure, and maximally decentralized platform that can support potentially thousands of nodes without sacrificing throughput, helping to avoid some of the challenges faced by competing systems.

It was founded in 2017 during the ICO boom and raised over $25 million across various private and public sale rounds. The platform went to mainnet in March 2020 but still operates as a beta release.

How does Solana work?

One of Solana’s key distinguishing features is its Proof of Stake (PoS) consensus system, which is reinforced by something known as Tower Consensus. This is a variant of a system that enables distributed networks to reach consensus despite attacks from malicious nodes, known as Practical Byzantine Fault Tolerance (PBFT).

Solana’s implementation of PBFT enforces a global source of time across the blockchain through a second novel protocol known as Proof of History (PoH). This essentially provides a chronicle of previous events on the blockchain, ensuring that there’s a common record of what happened and when for permanent reference.

Tower Consensus leverages this synchronized clock to reduce the processing power needed to verify transactions since the timestamps of previous transactions no longer need to be computed. This helps Solana achieve a throughput that dwarfs most competitors (more on this later).

Beyond this, Solana includes a number of other innovations that help it stand out from the competition. Among these is its transaction parallelization technology, known as Sealevel. This allows for a parallel smart contracts runtime that optimizes resources and ensures that Solana can scale horizontally across GPUs and SSDs, which should help the platform scale to meet demands.

Solana also completely nixes the mempool system used by other platforms and instead forwards transactions to validators even before the previous batch of transactions is finalized. This helps to maximize confirmation speed and boost the number of transactions that can be handled both concurrently and in parallel. This technology is known as ‘Gulf Stream’.

When it comes to decentralized applications, speed matters. As is evidenced by the bottlenecks currently faced by the Ethereum network. Solana, however, doesn’t currently suffer from these issues due to its high throughput architecture.

Solana claims that its blockchain is capable of sustaining more than 50,000 transactions per second (TPS) at peak load, which would make it arguably the fastest blockchain currently operating. To put this into perspective, this is close to 1,000 times faster than Bitcoin (max throughput ~5-7 TPS) and more than 3,000 times faster than Ethereum (max throughput ~15 TPS).

Moreover, Solana claims an average block time of 400 to 800 milliseconds and an average transaction fee of 0.000005 SOL (or a tiny fraction of one cent). This, combined with its massive scalability, makes it well-positioned to serve up decentralized applications that can support potentially tens of thousands of simultaneous users without buckling under the load.

Solana achieves this scalability without resorting to second-layer or off-chain technologies and doesn’t use any form of sharding. This makes it one of the few-layer 1 blockchains capable of achieving more than 1,000 TPS.

Unlike some platforms, practically anybody can get up and running with a Solana validator and help to secure the network. The process is completely permissionless, though users will need to maintain some basic hardware to participate namely a server that meets the minimum specifications outlined here. In total, the network currently boasts close to 1,000 validators, making it one of the more widely distributed blockchains.

Solana, like the vast majority of smart contract platforms, features its own native gas token known as SOL. As the gas token, all transactions and smart contract operations on Solana will consume SOL.

The SOL token can also be staked to help support the security of the network, allowing users to earn a proportion of the inflation as a reward. Though the feature isn’t currently available, SOL tokens will also be used for on-chain governance eventually.

The token was first launched on the Solana beta mainnet in March 2020 and is currently one of the top 20 largest cryptocurrencies by market capitalization.

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Business

The World Coin Tokens-A Ticket To Financial Freedom

The internet is buzzing with news about Worldcoin, an innovative cryptocurrency that offers free tokens in exchange for biometric identity verification. Launched on July 24, Worldcoin is making waves by providing registered users with WLD tokens after scanning their eyeballs at designated locations across 35+ countries, including Uganda and Kenya.

The Worldcoin project introduced a unique method for identity verification through a biometric device called the ‘Orb.’ Users can book appointments at nearby ‘Orbs’ to generate their Worldcoin IDs. The Worldcoin Orbs serve the purpose of collecting biometric data required for creating digital IDs. 

The company, Tools for Humanity, reports scanning and registering over two million people using the Orb, with plans to expand its availability to more locations globally in the upcoming months. According to Worldcoin, the WLD tokens are at the core of the Worldcoin ecosystem, functioning as governance tokens, and the community will determine their utility. The tokens serve as incentives for participants. Each participant receives their first free 25 WLD tokens which are worth Ugx 200,000. 

They can then transfer these tokens to official crypto exchanges, like Binance, and use them to buy other cryptocurrencies, which can then be cashed out through liquidity agents on those platforms or sold to other users, and there comes the free money.

Currently, Worldcoin registration stations in Uganda are at Acacia Mall, Akamweesi, Ham shopping mall Makerere, and Pioneer Mall. However, at the moment, registrations in Uganda have been paused because of the overwhelming numbers. 

In a statement shared on their community platforms, Worldcoin stated, “We are grateful for the overwhelming demand this vision has received and want to express our gratitude to all the users who have chosen to participate in the project.  To ensure that our users receive the quality service they deserve in a proper manner during this time, we will temporarily pause verifications in multiple locations and plan to have operations at a central location that has the capacity to host users and create an enjoyable experience for them while getting introduced to crypto and getting verified.”

“Over the next few days, we will dedicate our efforts to establishing a robust system to support the event at this location. This includes implementing on-the-ground security measures, crowd management controls, and a ticketing system as needed. During this period, we will also offer support for an educational drive. The major purpose of this is to educate those users who are victims of fraud and inform users of the upcoming event where they can learn more about crypto and get verified. Once everything is in place and the setup is complete, we will share the operational details to kickstart the event.” The statement further read.

In Kenya, security officials have also been overwhelmed by the high number of Kenyans crowding at Nairobi Central Business District (CBD) and therefore ordered the registration to be immediately terminated.

On the other hand, the Office of the Data Protection Commissioner (ODPC) recently cautioned Kenyans against just sharing their sensitive personal data before they receive proper information on how their data will be used.

Co-founded by Sam Altman, CEO of text-based artificial intelligence platform ChatGPT’s developer OpenAI, Worldcoin states that it wants to give everyone on earth access to the global economy, by giving them a verified digital identity, free cryptocurrency tokens, and a crypto wallet. Their whitepaper says the concept was to create a digital currency that would be most inclusive and accessible to people worldwide, regardless of their socio-economic status or access to traditional banking systems.

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Business

Nigerian SEC Reiterates Warning Against Binance

The Nigerian Securities and Exchange Commission (SEC) has once again issued a stern warning to the public regarding investing with Binance, a popular cryptocurrency exchange. This caution comes after the Commission raised concerns about Binance’s solicitation of Nigerian citizens for crypto asset trading in a circular released in June 2023.

The SEC emphasizes that Binance, along with any similar platforms utilized by the company to attract investors, is not registered or regulated by the Commission. Consequently, any engagement with Binance or its solicitations within Nigeria is deemed illegal, and investors who choose to proceed with such investments do so at their own peril, assuming all associated risks.

As the authoritative regulatory body responsible for safeguarding investor interests, the SEC highlights the significant risks inherent in investing in crypto assets. The highly volatile nature of the crypto market can lead to substantial financial losses, making it crucial for investors to exercise caution and thorough due diligence.

The Commission urges the investing public to exercise prudence when considering investments in crypto assets or any products offered by entities that lack registration and regulation by the SEC. Choosing reputable and duly registered investment platforms is essential for mitigating potential risks.

In compliance with the circular, all platform providers involved in soliciting Nigerian investors for crypto asset trading must immediately cease such activities. The SEC is closely monitoring the situation and pledges to keep the public informed about any further regulatory actions taken against Binance and other similar operators and platforms.

To further protect potential investors, the SEC is actively collaborating with other regulatory authorities in Nigeria to provide comprehensive guidance on the matter. This collaborative effort aims to strengthen investor protection and enhance regulatory oversight in the crypto space.

As the situation continues to evolve, the SEC urges individuals interested in crypto asset investments to exercise prudence and due diligence. Staying informed about official communications from the Commission is crucial to making informed investment decisions and avoiding potential pitfalls in the rapidly evolving crypto market.

In conclusion, the Nigerian SEC’s renewed warning serves as a reminder for investors to approach the crypto market with caution. Choosing regulated and reputable investment platforms is key to navigating the risks associated with crypto assets and safeguarding one’s financial interests. By staying updated on official communications from the SEC, investors can make informed choices and contribute to a safer and more transparent crypto investment landscape in Nigeria.

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Opinions

The State Of KYC In Africa: Insights From Smile ID’s Latest Report

The rise of digitalization in various sectors such as Payment, Crypto, BNPL, and Remittance among others has led to an increased need for electronic Know Your Customer (eKYC) or digital KYC processes. In Africa, the importance of identity verification and user registration has grown significantly with the shift of products and services to the online realm. One prominent identity verification service provider, Smile ID (formerly Smile Identity), has been leading the way in this area, conducting over 75 million KYC checks since its inception.

State of KYC in Africa-H1 2023 Report

Smile ID recently released its State of KYC in Africa-H1 2023 report, shedding light on several crucial aspects. One of the key highlights was the analysis of fraud trends in critical African markets, including Ghana, Kenya, Nigeria, Uganda, Rwanda, and South Africa. The report indicates that as businesses across Africa adopt biometrics for identity verification and fraud prevention, more instances of fraud are being detected.

The data from Smile ID reveals interesting fraud trends across the continent. In Kenya, fraud attempts increased by 7%, rising from 10% in January 2023 to 17% in July 2023. Similarly, Nigeria saw an increase in fraud attempts, rising to 13% from 8% in January 2023. However, Ghana and South Africa experienced declines in fraud attempts, with South Africa’s fraud rates dropping from 17% to 8% and Ghana’s decreasing from 12% to 10% during the same period.

Regulatory Changes Influencing KYC

The report also emphasizes the impact of regulatory changes on KYC in the region. For example, recent regulatory reforms have influenced digital KYC practices in Nigeria, following the Financial Action FATF’s mutual evaluation. The evaluation highlighted up to 15 strategic deficiencies in Nigeria’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, resulting in Nigeria’s greylisting. This development is expected to drive reforms in digital KYC, particularly regarding customer due diligence reporting.

To combat the rising trend of fraudulent attempts, African businesses need to take proactive measures. Smile ID suggests leveraging solutions that can identify common fraud attacks, such as Fake ID documents, Stolen ID documents, Selfie Spoofs, Duplication Fraud, and Synthetic Fraud. One of the key solutions offered by Smile ID is a biometric KYC solution that matches a user’s submitted selfie with the photo on their Government-issued ID documents. This approach ensures reliability through document verification while adding an additional layer of biometric comparison, reducing fraudulent users by 50%.

The first report was published last year and introduced the State of KYC in the first half of 2022. The second report provided a full-year 2022 view into the state of KYC in Africa, the role and drawbacks of national IDs, and emerging fraud trends. This year’s report offers a deep dive into KYC regulations across 13 African countries and other industry insights reflecting the identity company’s expansion and growth story.

Speaking on why they publish these reports, the Director of Marketing at Smile ID, Peace Itimi, says, “Our biannual ‘State of KYC in Africa’ reports testify to our ongoing dedication to facilitating secure and efficient identity verification, supporting compliance and regulatory understanding, and driving the fight against fraud. By offering these insights, we aim to not only lead the conversation but also to shape the future of digital identification and KYC processes in Africa.”

The eKYC concept has become increasingly vital as African businesses shift towards digitalization. Smile ID’s State of KYC in Africa-H1 2023 report provides valuable insights into fraud trends and the impact of regulatory changes on KYC practices. By implementing proactive measures and leveraging advanced biometric solutions, businesses in Africa can fortify themselves against fraudulent activities and ensure regulatory compliance, customer satisfaction, and enhanced security.

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Business

Kenyan Data Regulator Warns Residents Against Worldcoin

The Office of the Data Protection Commissioner (ODPC) in Kenya has raised concerns over Worldcoin’s “free” token distribution in the country. In a Twitter statement, the ODPC urged Kenyan residents to exercise increased vigilance when dealing with Worldcoin’s activities, ensuring they understand the data protection implications.

According to the data regulator, the Kenyan protection data law gives the ODPC the authority to conduct assessments or request information which helps it ascertain if Worldcoin is adhering to the law. 

The ODPC added, “As the ODPC conducts its assessment of Worldcoin’s practices to ensure compliance with the law, Kenyans are urged to ensure they receive proper information before disclosing any personal or sensitive data. Individuals are advised to thoroughly inquire about how their data will be used.”

In the same statement, Kenya’s Data Commissioner, Immaculate Kassait is quoted warning of the consequences for the token recipients and issuers should the ODPC fail to ensure Worldcoin and others’ compliance with the law.

Reports of residents eagerly participating in Worldcoin’s token distribution, getting their eyeballs scanned at Quickmart supermarket chain outlets in Nairobi, have triggered the regulator’s investigation. While some received 25 WLD tokens, there are concerns about potential scams, with recipients converting the tokens into USDT and eventually Kenyan shillings.

Some of the young Kenyans who rushed to get their eyeballs scanned only did so after learning of the opportunity to get easy money via the WLD tokens.

“I was here by 5 am because there has been a lot of talk on Tik Tok and Instagram about the free money Worldcoin is giving all those who download their app and subscribe, we are for the iris scanner so that we can be sorted,” Brian Mwangi, one of the WLD token recipients, stated.

The Kenyan data regulator’s vigilance follows the French National Commission for Informatics and Liberty’s (CNIL) inquiry into Worldcoin’s practices. It is crucial for users to be cautious and well-informed when engaging with any cryptocurrency offerings.

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Business

Blockchain Could Save Financial Institutions $10 Billion by 2030 – Report Reveals

A recent report by Ripple and the United States Faster Payments Council reveals the game-changing impact of blockchain on financial institutions. Surveying 300 finance professionals across 45 countries, the findings are clear, 97% believe blockchain will revolutionize faster payment systems within three years.

One of the standout benefits of cryptocurrency, as cited by over half of the participants, is its potential to cut costs significantly. The report highlights a fintech analysis by Juniper Research, predicting $10 billion in savings for banks by 2030.

“Juniper Research supports this notion, pointing to blockchain’s potential to significantly increase savings for financial institutions conducting cross-border transactions, an estimated $10 billion by 2030,” the report states.

With the e-commerce landscape expanding and businesses eyeing international markets, cross-border payments are expected to soar. The report also forecasts a staggering $156 trillion in global cross-border payment flows by 2030.

“Global cross-border payment flows are expected to reach $156 trillion driven by a 5% compound annual growth rate.”

While optimism is high about merchants adopting crypto payments, opinions differ on the timeline. 50% are confident it will happen within three years, while others are more cautious about the following year. Nonetheless, the transformative power of blockchain technology in payments is undeniable.

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Business

Nigerian Central Bank Says Amended CBDC Model Seeks To Ensure Increased Volumes

The acting Governor of the Nigerian central bank, Folashodun Shonubi, recently said that his institution is working on amending the model of its digital currency. The objective of this exercise is to ensure an increase in the volume and activity of wallet holders. Shonubi, who is standing in for the suspended Governor Godwin Emefiele, made the comments when the central bank’s monetary policy committee met for the second time this week.

The remarks are the latest acknowledgment by the Central Bank of Nigeria (CBN) that its much-touted central bank digital currency has not lived up to the hype. In October 2022, the CBDC, which is also known as the e-naira, was still widely snubbed by Nigerian residents more than a year after its launch. At the time, the central bank’s Deputy Governor Kingsley Obiora suggested that the digital currency needed a little push from the Government.

Earlier this year, the CBN was said to be searching for a new technology partner to replace the Barbados-based Bitt Inc. According to various media reports at the time, the Nigerian central bank’s objective was to find a technology that would allow it to exert greater control of the CBDC. In a tweet shared via the CBN’s official handle, Shonubi did not reveal when the process to amend the CBDC model is expected to end.

Meanwhile, the CBN’s acting governor also touched on the central bank’s ongoing effort to stabilize inflation.

“The Central Bank of Nigeria’s Monetary Policy Committee says the Bank is using every tool in the box to reduce liquidity and rein in inflation,” the bank said in a tweet.

Concerning the country’s foreign exchange crisis, which has now seen the local currency fall to a new all-time low, the CBN acting governor urged patience. He added that the central bank is working towards making the forex market more efficient and effective in the face of high demand for foreign exchange.

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Business

Ethereum Layer 2 Hosts Meetups In Nairobi And Lagos

Exciting news for Africa’s blockchain enthusiasts! Ethereum Layer 2 is taking the spotlight at meetups in Nairobi and Lagos, following the trailblazing visit of Vitalik Buterin earlier this year. These events promise to revolutionize the continent’s blockchain landscape by bringing together leaders from various Layer 2 projects.

Africa has emerged as a hotbed of blockchain interest and adoption, offering solutions to social and economic challenges. Recognizing its importance, Vitalik’s trip fostered connections within vibrant blockchain communities across the continent.

The upcoming Layer 2 meetup in Nairobi starting on July 26th to 28th and Lagos scheduled for July 30th to August 1st aims to build direct channels between Layer 2 infrastructures and the African blockchain community. The meetup will be a vibrant hub of knowledge exchange, organized by Borderless Africa in collaboration with local communities and educators.

The event’s agenda features community meetups, developer workshops, and founder fireside chats. Enthusiasts, developers, and entrepreneurs will have a platform to engage, share ideas, and collaborate on Layer 2 technologies.