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Business

Staked Ethereum Now Accounts For 20% Of The Total Supply

Approximately $45 billion, which is around 20% of the total Ethereum in circulation, has been staked as of Monday, marking a significant milestone in the utilization of Ethereum. Staking involves users pledging tokens to the network to enhance its security and earn rewards in return. Currently, about 24 million Ethereum tokens are locked up across 744,000 validators responsible for processing transactions, as reported on a Dune Analytics dashboard created by a user known as Hildobby.

Ethereum, like several other blockchains, has transitioned from a proof-of-work to a proof-of-stake consensus model. In Ethereum’s case, validators are required to pledge a minimum of 32 Ethereum tokens to validate transactions and earn associated fees. This shift occurred in September of the previous year, and for several months, staked Ethereum couldn’t be withdrawn until an upgrade in April resolved this issue.

Before the upgrade, approximately $29 billion worth of Ethereum, equivalent to 14.5% of the circulating ETH, had been staked. The pivotal Shanghai upgrade allowed for staking withdrawals, leading up to the current milestone.

The achievement reached on Monday signifies a notable milestone in Ethereum’s progress toward a consensus model that is more environmentally friendly. Adam Cochran, a prominent venture capitalist and crypto analyst, highlighted the alignment of economic incentives with security goals as a significant advancement for the network. He expressed pride in this milestone and its implications.

Lido Finance, the largest liquid staking protocol in the crypto market, is the preferred choice for staking Ethereum among users. Lido Finance enables users to stake any amount of ETH and receive a staked Ethereum token called “stETH” in return. It currently accounts for almost 32% of all staked Ethereum. Cryptocurrency exchanges also play a substantial role, with Coinbase, Kraken, Binance, and OKX collectively holding around 19% of all staked Ethereum. Staking has offered exchanges an alternative revenue stream, particularly during bear markets when trading volumes are low.

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Business

Flutterwave Launches Tuition To Ease Education Payments For Africans Abroad And On The Continent

Flutterwave, Africa’s leading payments technology company, has introduced a groundbreaking payment product called Tuition, which allows African users to conveniently pay various fees to educational institutions within Africa and overseas using their local currencies. This innovative solution aims to address the challenges associated with paying school fees for students studying abroad or at home, ensuring seamless transactions and enhancing overall payment experiences.

Tuition provides a comprehensive platform for students, parents, guardians, and sponsors to make school fee payments to over 40 institutions in the UK, with plans to expand the service to more countries in Africa and beyond. Historically, African payments to overseas schools have been hindered by several obstacles such as high transaction costs, limited access to banking services, lack of transparency, security concerns, and fluctuating currency exchange rates. Tuition seeks to alleviate these issues by leveraging Flutterwave’s world-class payments technology solution, making school fee payments more convenient, secure, and reliable.

One of the key advantages of Tuition is its integration with Flutterwave’s robust payment infrastructure, enabling users to track their transactions and payment history directly through the Tuition web app. This feature empowers parents, guardians, and sponsors to have real-time visibility into their payment status, ensuring greater peace of mind.

Olugbenga “GB” Agboola, the CEO of Flutterwave, expressed his enthusiasm for the launch of Tuition, emphasizing its potential to support African students at all levels in pursuing education anywhere in the world without the burden of meeting strict payment deadlines. Agboola highlighted Tuition as a safer, more reliable, and affordable means for African students to fulfill their educational aspirations and effortlessly receive financial support from their families and sponsors.

Stella Elele, the Product Manager of Tuition, shared her perspective on the product’s launch, underscoring Flutterwave’s commitment to simplifying payment challenges in Africa. Elele emphasized Tuition as a game-changer for parents seeking to support their children’s education and expressed excitement about introducing the solution to parents in Nigeria, with plans to expand its availability to other African countries in the future. Elele also reaffirmed Flutterwave’s dedication to delivering exceptional service and support to its customers.

Tuition is currently accessible in Nigeria for payments towards UK school fees, and its availability will soon expand to other African countries in the following months. Flutterwave intends to continually enhance the product’s accessibility by incorporating additional schools from Africa, the UK, the US, Canada, France, and Germany.

With the launch of Tuition, Flutterwave reinforces its position as a leading payments technology company, dedicated to revolutionizing the way Africans make educational payments locally and globally. By offering a seamless, secure, and reliable platform, Tuition opens doors for countless African students to pursue their dreams of acquiring quality education without financial barriers.

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Opinions

Central Banks Forge Ahead With CBDCs Despite Crypto Market Challenges – BIS Survey Reveals

Despite the recent challenges faced by the crypto market, the number of central banks planning to launch Central Bank Digital Currencies (CBDCs) has doubled since last year. A survey conducted by the Bank for International Settlements (BIS) reveals that almost a quarter of central banks globally are currently piloting a retail CBDC, with over two dozen state-backed digital currencies set to roll out by 2030. While concerns over the impact of crypto assets on financial stability persist, the emergence of stablecoins and other crypto assets has accelerated the development of CBDCs according to 60% of the central banks surveyed.

Growing Adoption of CBDCs:

CBDCs, digital forms of a nation’s or economic zone’s currency issued by central banks, are gaining momentum worldwide. Nigeria, Jamaica, the Bahamas, and the Eastern Caribbean have already issued CBDCs, and many other countries are set to follow suit. By the end of the decade, 15 retail CBDCs designed for consumer use and nine wholesale CBDCs facilitating transactions between financial institutions are expected to launch in both emerging and established economies.

Crypto Challenges and Diverging Approaches:

While the crypto market’s volatility and challenges have not deterred central banks from exploring CBDCs, not all banks are convinced of the need for state-backed digital currencies. The BIS survey reveals that 93% of central banks are investigating CBDCs to some extent, but an increasing number of banks have indicated that they do not plan to issue a digital currency in the near future. The report notes a clear divergence among central banks, with some becoming more likely to issue a CBDC within the next three years and others expressing reduced interest in doing so.

Regulatory Measures to Address Risks:
Recognizing the potential risks posed by stablecoins and crypto assets to financial stability, various international bodies, including the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO), the Financial Stability Board (FSB), and the Basel Committee on Banking Supervision (BCBS), have published updated guidelines and standards. These regulatory measures aim to strengthen and coordinate approaches to contain the risks associated with stablecoins and crypto activities more broadly.

Despite the challenges faced by the crypto market, central banks worldwide are forging ahead with plans to launch CBDCs. The increasing adoption of CBDCs reflects a recognition of their potential benefits and the need to provide a secure and regulated digital currency option. While concerns remain, regulatory efforts are underway to address the risks associated with stablecoins and cryptoassets. As central banks continue their exploration of CBDCs, the global financial landscape is set to undergo significant transformation in the coming years.

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Business

Zimbabwe Central Bank Begins Gold-Backed Digital Currency Dry Run

The Reserve Bank of Zimbabwe (RBZ) has taken a significant step towards stabilizing the country’s local currency by initiating a “dry run” to test the feasibility of introducing a gold-backed digital currency for peer-to-peer transactions. The move aims to provide an alternative means of payment that will be accepted as legal tender.

This latest development follows the recent announcement by RBZ of its plans to launch a peer-to-peer platform, enabling holders of digital gold tokens to trade them. The governor of RBZ, John Mangudya, has previously expressed the belief that these gold-backed tokens will help alleviate Zimbabwe’s dependence on foreign currencies, such as the US dollar.

Nelson Mupunga, the Director of Economic Research and Policy Implementation for RBZ, emphasized that digital currency will serve as an alternative to both the struggling local currency and foreign currencies. Mupunga stated, “We are currently in an advanced testing stage. Soon, we will allow the gold digital token to be used for transactions, similar to purchasing foreign currency from the parallel market. However, it can also be used for regular transactions. Therefore, the token will serve a dual function.”

The decision to introduce a gold-backed digital currency stems from the observation of Zimbabwean residents frequently resorting to the US dollar as a store of value due to the instability of the local currency. With the new gold-backed digital tokens, residents will have the opportunity to store value in a more stable asset, reducing their reliance on foreign currencies.

By introducing a gold-backed digital currency, the RBZ aims to create a more robust and secure financial ecosystem. This initiative not only demonstrates the central bank’s commitment to stabilizing the local economy but also showcases its willingness to adopt innovative solutions to address ongoing challenges.

As the RBZ progresses with its testing phase, Zimbabwe’s adoption of a gold-backed digital currency holds the potential to shape the future of transactions within the country. By providing a reliable and secure alternative to traditional currencies, this digital token has the capacity to foster economic growth and restore confidence in the local financial system.

Zimbabwe’s pursuit of a gold-backed digital currency is a noteworthy development that underscores the country’s determination to explore new avenues for financial stability. As the pilot phase continues and the digital currency gains traction, it will be interesting to witness the impact it has on the Zimbabwean economy and its potential implications for similar initiatives worldwide.

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Business

Solana Labs Creating AI Tool To Help People Find NFTs

Despite recent negative headlines surrounding the NFT market, Solana Labs is determined to make it easier for individuals to enter the space. The company is working on an AI tool designed to help users navigate the complexities of the market and identify non-fungible tokens (NFTs) that align with their preferences and interests.

Tal Tchwella, Head of Product at Solana Labs, acknowledges the challenges that potential buyers face when trying to enter the NFT market. “One of the challenges right now is that buyers need to go figure out a lot of different data points,” Tchwella stated. The AI tool aims to simplify the process by providing accessible data to newcomers, enabling them to discover NFT collections that resonate with them.

Tchwella emphasizes that amidst the hype surrounding NFTs, genuine connections and communities are being formed. The AI tool will assist newcomers in identifying not only trending collections but also communities that align with their profiles. By leveraging AI, Solana Labs aims to provide users with valuable insights and recommendations to facilitate their entry into the world of NFTs.

Although NFTs on the Solana blockchain may have lower values compared to high-priced assets on Ethereum, Solana has made significant progress in expanding its ecosystem. According to data from The Block Research, Solana added 6.7 million new digital wallet addresses in May and an additional 3.3 million in June. In comparison, Ethereum added 2.3 million addresses in May and 2.5 million in June.

Solana Labs’ co-founder and CEO, Anatoly Yakovenko, has also highlighted the potential of AI in aiding the development of web3 and the crypto space. In May, Yakovenko expressed how artificial intelligence will enhance the usability and understanding of the Solana blockchain. This vision aligns with the recent release of the ChatGPT plugin, demonstrating Solana Labs’ commitment to leveraging AI technologies.

As Solana Labs continues to develop its AI tool and integrate it into its platform, it holds the promise of simplifying the NFT buying process and providing a user-friendly experience for newcomers. By leveraging AI-powered insights, Solana Labs aims to bridge the gap between individuals and the NFT market, fostering greater participation and exploration of the growing digital asset landscape.

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Business

Namibian Parliament Passes Crypto And Digital Assets Regulation Bill


The Namibian parliament recently made significant strides by passing a bill aimed at legalizing cryptocurrencies and establishing a comprehensive regulatory framework for these digital assets. This development comes with the intent to safeguard consumer interests and combat market abuse, as highlighted by the country’s Finance Minister, Iipumbu Shiimi.

Shiimi emphasized the importance of the new law in addressing money laundering risks associated with cryptocurrencies, as reported by The Namibian. By creating a regulatory framework, the legislation intends to protect consumers while also mitigating the potential for illicit activities.

This legislative move towards regulating digital assets appears to diverge from the stance taken by the Bank of Namibia (BON) in late 2022, which stated that cryptocurrencies held no legal tender status in the country. Nevertheless, the central bank clarified that it would not impede merchants and traders who chose to accept cryptocurrencies.

The Namibian parliament’s passage of the bill has generally been received positively as a step in the right direction. However, experts such as Jesaya Hano-Oshike have cautioned against the potential creation of unnecessary obstacles through the implementation of this law.

Hano-Oshike emphasized the importance of ensuring that the legislation does not stifle innovation within the cryptocurrency space but rather encourages and supports innovative initiatives within the boundaries set by the law.

Financial analyst Arney Tjaronda also welcomed the bill’s passage but stressed the need for authorities to consider the potential impact of digital assets on the country’s financial system.

Overall, the Namibian parliament’s recent actions demonstrate a proactive approach towards regulating cryptocurrencies, prioritizing consumer protection, and addressing money laundering concerns while striking a balance that allows for continued innovation and growth in the digital asset sector.

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Business

Bitcoin miners raked up $184M in fees in Q2, surpassing all of 2022

Bitcoin (BTC) miners experienced a significant boost in earnings during the second quarter, raking in a staggering $184 million from transaction fees. This figure surpasses their total earnings for the entire year of 2022, primarily driven by Bitcoin’s surging price and the growing prominence of BRC-20 tokens.

According to a report from cryptocurrency analytics platform Coin Metrics, the $184 million payout marks a remarkable 270% increase from the first quarter of 2023. It also represents the first time since Q2 2021 that the quarterly transaction fee revenue has exceeded the $100 million mark.

Bitcoin miners receive transaction fees as a reward for validating new blocks, with the amount determined by data volume and user demand for block space. The surge in fees can be attributed to Bitcoin’s recent price rally, which bolstered top-line revenues, and the introduction of BRC-20 tokens. BRC-20 is a new token standard for Bitcoin, introduced in March, enabling the minting and transfer of fungible tokens on the network through Ordinals inscriptions. This standard has unlocked experimental use cases for Bitcoin’s core transaction types and has contributed to the acceleration of Bitcoin’s scalability efforts, particularly with the Lightning Network.

It is important to note that transaction fees accounted for only 7.7% of the total $2.4 billion earned by miners throughout the quarter. The majority of earnings came from Bitcoin block rewards, where miners currently receive 6.25 BTC for successfully solving each block. However, this block reward is set to halve to 3.125 BTC after the next halving cycle, expected to occur in May.

As Bitcoin’s hashrate continues to reach new all-time highs over the past year, competition in the mining fee market has intensified. Coin Metrics explains that the mining fee market remains fiercely competitive, with the Bitcoin hashrate reaching 375 EH/s during the quarter. The adoption of modern ASICs, such as the S19 XP, has contributed to the overall network’s increased efficiency.

The substantial increase in transaction fee earnings for Bitcoin miners underscores the ongoing profitability of mining operations. As Bitcoin’s ecosystem evolves, miners continue to adapt to changing dynamics and technological advancements to maintain their competitive edge in the market.

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Business

Crypto Hacks And Exploits Snatch Over $300M In Q2 2023 – Report States

Certik, a leading blockchain security company, has released a comprehensive report on the extent of cryptocurrency losses resulting from hacks and exploits in the second quarter of this year. The report reveals that hackers successfully pilfered a staggering $313 million through various scams and malicious exploits during this period.

While the total amount lost remains relatively consistent compared to the first quarter’s figure of $320 million, it represents a significant decrease from the corresponding quarter in 2022 when losses reached a staggering $745 million.

The report highlights a total of 212 security incidents that occurred in the second quarter, with exit scams accounting for a substantial portion of the losses at $70 million. This figure is nearly double the amount reported in the previous quarter, which stood at $31 million.

Examining specific blockchain networks, BNB Chain experienced the highest number of security violations, surpassing 100 incidents and resulting in losses amounting to $71 million. Ethereum, another prominent blockchain platform, encountered 55 incidents that led to a financial loss of $66 million. In contrast, Polygon recorded four cases of security breaches, causing losses of approximately $2.4 million.

Certik’s report underscores the ongoing need for robust security measures within the cryptocurrency ecosystem. As the sector continues to evolve, it is imperative for industry participants to remain vigilant in safeguarding their digital assets and strengthening security protocols to combat the growing threat of cybercriminals.

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Business

South Africa Demands Crypto Exchanges Licensing By Year-End

South Africa’s financial regulator, the Financial Sector Conduct Authority (FSCA), has announced that all cryptocurrency exchanges operating in the country must obtain licenses by the end of the year. The move aims to enhance consumer protection and mitigate the potential risks associated with crypto products. FSCA Commissioner Unathi Kamlana revealed that approximately 20 applications for licenses have already been received since the licensing process commenced a few weeks ago, and more are expected before the November 30 deadline.

Kamlana emphasized that the FSCA is prepared to take enforcement action against non-compliant firms, including potential closure or financial penalties. By implementing a regulatory framework, the FSCA aims to address the significant harm that can befall financial customers utilizing crypto products. The effectiveness of these measures will be evaluated over time, with continuous collaboration between the regulatory body and the industry to refine and make necessary changes.

South Africa’s status as the most advanced economy in Africa makes it a crucial hub for digital asset exchanges. Notable trading platforms originating from South Africa include Luno, owned by Barry Silbert’s Digital Currency Group, and Pantera-backed VALR. In addition to local exchanges, international platforms such as Binance also operate within the country and will be required to secure licenses. Christo de Wit, the manager of Luno’s local unit, confirmed that the company has already submitted its license application and is awaiting feedback from the FSCA.

The move by South Africa to regulate crypto exchanges follows a global trend of tightening regulations in the cryptocurrency sector. Various jurisdictions worldwide have implemented measures to enhance oversight and protect consumers, responding to incidents of company collapses and fraud. For instance, the bankruptcy of the Bahamas-based exchange FTX highlighted the need for stricter regulations. In the European Union, the Markets in Cryptoassets (MiCA) law was recently passed, providing a regulatory framework for the crypto industry. Hong Kong also implemented new regulations to license exchanges in the previous month.

South Africa has unfortunately witnessed several significant cryptocurrency scams in recent years, resulting in the loss of billions of dollars in investments. These include the Africrypt platform, operated by the Cajee brothers, which vanished with 70,000 bitcoins in 2021, and the fraudulent multilevel marketing scheme Mirror Trading International Proprietary. The FSCA has been actively engaged in developing crypto and fintech regulations, collaborating with an intergovernmental fintech working group that includes the country’s major financial regulators and policymakers such as the National Treasury and the South African Reserve Bank.

While most South African banks have refrained from providing banking services to crypto platforms due to associated risks, the central bank has encouraged them to reconsider. By involving traditional financial institutions, the central bank aims to gain better visibility into the crypto sector, promoting greater transparency. Commissioner Kamlana highlighted the advantages of being within the formal sector and under the regulation of tightly controlled entities like banks, as it instills a sense of security.

To safeguard consumers, the FSCA intends to implement measures such as financial education and increasing public awareness about cryptocurrency products. These initiatives will contribute to a more informed and educated user base, reducing the likelihood of falling victim to scams or fraudulent schemes.

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Business

East Africa Digital Innovation Summit

The highly anticipated East Africa Digital Innovation Summit is set to take place from July 6 to 9, 2023. Organized by Blockchain Vibes and a few other partners, this prominent event aims to explore the cutting-edge advancements in Web2 and Web3 technologies and their profound impact on the future of digital transformation in East Africa and the entire continent.

Bringing together innovators, policymakers, entrepreneurs, investors, tech enthusiasts, and various stakeholders from Kenya, Rwanda, Uganda, and beyond, the East Africa Digital Innovation Summit promises four days of strategic conversations, high-level networking, and partnership opportunities.

The schedule kicks off in Nairobi, Kenya, with the East African Digital Youth Conference at the Cooperative University of Kenya Auditorium on July 6. The following day, the East Africa Digital Entrepreneurs Forum and startup pitch contest will be held at the Kigali Convention Centre in Kigali, Rwanda. The journey then leads to Kampala, Uganda, for the Digital Innovation Conference and Awards at the Yusuf Lule Central Teaching Facility, Makerere, on July 8. A memorable VIP dinner will wrap up the summit on the next day.

Attendees will have the chance to not only engage with remarkable speakers, organizers, and participants from around the world but also explore the scenic East African region, all while actively contributing to the pivotal conversations that will shape the continent’s digital future.

The conference will cover a wide range of topics, including digital entrepreneurship, e-commerce, fintech, cybersecurity, digital inclusion, and the transformative potential of digital technologies in sectors such as healthcare, agriculture, education, and government services.

The East Africa Digital Innovation Summit serves as a catalyst for driving digital transformation and fostering innovation in the region. By facilitating knowledge exchange, encouraging investment in digital initiatives, and nurturing local digital talent, the summit aims to accelerate economic development and establish a sustainable digital ecosystem in East Africa.