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Opinions

Neobank CEO Sees DeFi as Solution To Africa’s Foreign Exchange Challenges

The CEO and co-founder of Canza Finance, a neobank, asserts that embracing Baki for foreign exchange transactions within Africa could establish a central platform for African businesses to engage in intra-African and FX trades at reduced expenses.

Accessing forex liquidity and conducting currency swaps pose significant challenges for many in Africa, constraining the utilization of United States dollar-based services within the continent’s import-dependent economies. This gap, according to Pascal Ntsama IV, the CEO of Canza Finance, could be bridged by decentralized finance (DeFi), leveraging cryptocurrencies, blockchain networks, and related services.

In an interview, the CEO highlighted Canza Finance’s new DeFi innovation, Baki, aimed at tackling this issue by providing decentralized foreign exchange (FX) for African currencies. Baki aims to facilitate swaps devoid of slippages at official central bank rates, fostering a platform for businesses to engage in intra-African and FX trades at a reduced cost.

The conventional exchange of local African fiat currencies often results in funds exiting Africa, leading to inflation in the dollar value and increased costs due to currency slippages. Baki intends to counter this by enabling traders to swap currencies without loss, transacting at official central bank prices.

The growth projections for DeFi in Africa indicate an annual growth rate of 21.99%, with estimates suggesting it could attract over half a million users by 2027. However, experts advise caution in these forecasts, considering the continual rise in grassroots adoption of blockchain products.

When questioned about the viability of Baki’s services in countries like Nigeria, where blockchain technology adoption remains limited even after receiving approval, Ntsama stated that Baki is designed to operate within the current regulatory framework. It leverages existing user behaviors to address blockchain-related challenges, though he emphasized that favorable regulatory changes could spur more widespread industrial and institutional adoption for Baki.

Ntsama highlighted that in traditional FX swaps, the agent assumes local currency risks until they can offload the position, necessitating risk pricing for the buyer. Baki mitigates these risks by facilitating swaps between similar currencies at official rates, enabling the agent to transition into U.S. dollar positions with minimal slippage.

According to Ntsama, users and entities providing liquidity for Baki receive yields from the 80 basis points fee charged on each currency swap within the system. This yield is divided, with 50% going to liquidity providers, 25% to Canza Finance native tokenholders, and the remaining 25% to Canza Finance itself.

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Business

VALR’s Next Chapter: Ben Caselin Appointed CMO For International Reach

VALR, recognized as Africa’s leading cryptocurrency exchange in trade volume, has strategically appointed Ben Caselin as its Chief Marketing Officer (CMO) to spearhead the platform’s global expansion efforts. With a robust clientele of over 900 corporate and institutional partners and more than 500,000 active retail users, VALR has prioritized security, performance, and integrity throughout its operations.

Established in 2018 and firmly positioned as South Africa’s premier exchange, VALR has facilitated trading volumes exceeding $10 billion and secured $55 million in equity funding. Noteworthy stakeholders encompass Coinbase Ventures, Pantera Capital, and Avon Ventures—an investment arm associated with Fidelity Investments’ parent company.

Farzam Ehsani, VALR’s co-founder and CEO, expressed enthusiasm about Caselin joining as CMO, citing Caselin’s extensive track record in propelling growth and advocating Bitcoin adoption in emerging markets. Ehsani highlighted the alignment between Caselin’s expertise and VALR’s mission to contribute to a unified financial system benefiting all.

Bringing substantial experience from executive roles at major exchanges in Hong Kong (AAX) and the United Arab Emirates, Caselin’s insights have been widely featured in top-tier media and global conferences.

Caselin commended VALR’s values-driven approach, emphasizing their commitment to integrity, quality, and security as unparalleled. He underscored VALR’s potential as a global force, praising its innovative trading pairs, robust technological team, visionary leadership, and advanced API trading environment catering to professional crypto traders.

Expressing alignment between his personal mission and VALR’s vision, Caselin eagerly anticipated collaborating with VALR’s exceptional team to fortify the platform’s success globally, expand its market presence, and offer a reliable, professional trading interface worldwide.

VALR recently introduced perpetual futures trading, including the world’s inaugural Bitcoin and USDT perpetual futures paired against the South African Rand. This move positions VALR as an innovative force in the crypto exchange ecosystem, granting users new prospects in the volatile ZAR-denominated crypto futures market.

With approval to provide crypto services in Europe and actively pursuing licenses in Mauritius and Dubai—with initial approval from VARA, Dubai’s Virtual Assets Regulatory Authority—VALR remains committed to advancing its global footprint and offering enhanced services to users worldwide.

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Opinions

Tradefada CEO Applauds Police Action In Support Of Patricia Technologies

Tradefada, a leading crypto exchange platform, has reiterated its strong support for Patricia Technologies following an insightful interview with Seun Dania, Tradefada’s CEO. Dania commended the Nigerian Police Force for their successful efforts in apprehending the culprits responsible for the security breach at Patricia Technologies, a significant Nigerian cryptocurrency exchange.

Dania emphasized the importance of this development, not only in restoring trust in Patricia Technologies but also in bolstering confidence within the broader African startup ecosystem. He stressed that the police’s actions in apprehending the criminals play a pivotal role in dispelling concerns about fund mismanagement and in reaffirming Patricia Technologies’ integrity.

Expressing unwavering support for Patricia Technologies, Dania acknowledged the challenges such incidents present while highlighting their capacity to test the resilience and potential of startups. He reiterated Tradefada’s commitment to investing in Patricia, not only financially but also by assisting them in fortifying a more secure platform.

Directing a message to affected users, Dania conveyed deep empathy and reassured them of Patricia’s dedication to rectifying the situation and preventing future breaches. He emphasized the crucial role of community support in overcoming such challenges and emphasized the significance of startups in driving economic growth and innovation across Africa.

Concluding the interview, Dania lauded the collaborative efforts between Patricia Technologies and law enforcement agencies in addressing the crisis. He urged the community to continue rallying behind local businesses, highlighting their pivotal role as beacons of hope and progress within the continent. This interview aligns with an ongoing initiative aimed at spotlighting the resilience and positive contributions of African startups, particularly in navigating adversities.

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Business

Nigerian Authorities Apprehend Politician Involved In Laundering Stolen Funds From Crypto Exchange

Law enforcement in Nigeria has detained a politician alleged to be involved in attempting to launder digital assets stolen from the cryptocurrency exchange platform, Patricia Technologies. The accused, Wilfred Bonse, reportedly conducted fraudulent transactions totaling over $60,000 from the $750,000 stolen funds, transferring them into his bank account.

Earlier this year, Patricia Technologies suffered a breach resulting in the loss of digital assets exceeding $2 million. The cyberattack created a significant financial deficit for the crypto platform, prompting efforts to secure funds for reimbursing affected users.

Prince Olumuyiwa Adejobi, the spokesperson for the Nigerian police, declared Bonse’s arrest, stating, “Wilfred Bonse engaged in the complex crime by participating in the laundering of Fifty Million Naira (N50,000,000) derived from the fraudulent diversion of Six Hundred and Seven Million Naira (N607,000,000) from Patricia Technology company’s account. These funds were channeled to his bank account through a cryptocurrency wallet.”

Adejobi affirmed that ongoing investigations aim to apprehend all individuals involved in the hacking incident and ensure justice is served.

Expressing gratitude, Patricia acknowledged the Nigerian law enforcement agencies for Bonse’s arrest. CEO Hanu Fejiro highlighted that the recovered funds would significantly aid in compensating affected Patricia users.

Recent developments unfolded following the confirmation of Bonse’s arrest and the retrieval of a portion of the stolen funds. This news surfaced shortly after Patricia announced the commencement of refunding procedures for the initial group of affected users.

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Technology

Bitget Embraces The Middle East And North Africa With Arabic Language Support

Bitget has introduced Arabic language support on its mobile app and website, extending accessibility to over eleven countries across the Middle East and North Africa. This move aims to cater to Arabic-speaking users, offering them a smoother experience in trading cryptocurrencies like Bitcoin.

By accommodating the Arabic language, Bitget aims to bridge communication gaps and simplify the learning process for users in the MENA region. This aligns with Bitget’s efforts to support fiat gateways for seven different currencies in the Middle East, including dinars, riyals, and ouguiyas. The platform’s rapid growth has prompted plans to further expand its presence in the Middle East.

Gracy Chen, Managing Director at Bitget, highlighted the significance of this expansion: “Our focus on the Middle East and North Africa involves tailoring user-centric products for the region. We are attuned to our user’s needs and are delivering features based on their preferences. The Arabic language Bitget App aims to facilitate easy access for individuals keen on learning and thriving in the crypto space.”

Bitget now enables users to trade cryptocurrencies across more than 12 Middle Eastern currencies and access over 590 tokens. The platform’s diverse features like P2P, Earn, Futures, and Copy-trading are also available in multiple languages to support a wider user base.

Notably, Bitget offers free costs for buying and selling cryptocurrencies using Bitget P2P, prioritizing a seamless trading experience for its Middle Eastern customers. To further its presence, Bitget is exploring obtaining licenses to operate in the targeted Middle Eastern markets. Securing necessary permits and regulatory clearance remains pivotal for the company’s expansion plans and establishment of regional branches.

In recent strides, Bitget has extended its international reach by becoming a registered VASP in Poland and a comparable cryptocurrency entity in Lithuania. This expanded strategy in the Middle East echoes Bitget’s broader objective of promoting widespread cryptocurrency adoption.

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Business

Yellow Card Makes History In Africa: Launches PayPal USD (PYUSD) For Crypto Access

Yellow Card, a leading fintech company in Africa, has achieved a significant milestone by becoming the first in the region to introduce PayPal USD (PYUSD), marking a pivotal moment in the continent’s evolving crypto landscape.

Africa has witnessed a remarkable surge in crypto adoption, with the market experiencing exponential growth of over 1200% between 2020 and 2021, reaching a staggering $106 billion, as reported by Chainalysis. Notably, Nigeria, Morocco, and Kenya have secured spots in the global top 20 for crypto adoption. This surge owes much to stablecoins, which have garnered favor among both novice and experienced traders due to their user-friendly nature and enhanced stability.

Yellow Card has emerged as the fastest-growing cryptocurrency enterprise in Africa, spanning operations across 20 countries. Its exponential growth demonstrates a steadfast trajectory, solidifying Africa as a prime market for rapid crypto expansion.

The launch of PYUSD in the US market has created ripples within the industry. PYUSD stands as a fully-backed USD stablecoin, boasting reserves entirely secured by US dollar deposits, US treasuries, and cash equivalents. Crucially, PYUSD and its reserves adhere to stringent regulatory oversight by the New York State Department of Financial Services, ensuring the highest standards of consumer protection.

Chris Maurice, CEO and Co-Founder of Yellow Card underscored the significance of this partnership, aligning it with the core values of the company: innovation, financial inclusion, and progress.

“This milestone embodies Yellow Card’s unwavering commitment to innovation and financial inclusivity. Integrating PYUSD into our platform isn’t solely a business accomplishment; it embodies our mission to democratize access to digital currencies across Africa,” said Maurice.

PYUSD’s integration on the Yellow Card platform streamlines fund transfers to and from the US. This seamless integration empowers PayPal and Venmo users in the US to accept PYUSD and easily exchange it for the dollar, eliminating lengthy processes while ensuring security, stability, speed, and cost-effectiveness.

Moreover, this collaboration opens up new global trading opportunities for African-based customers. They can effortlessly buy, sell, and transfer PYUSD on the Yellow Card platform sans the necessity of a PayPal account.

This partnership champions financial inclusion, education, and the convergence of traditional and digital financial systems in Africa, aligning with a shared vision. Undoubtedly, this alliance will empower individuals and businesses across the continent, enabling more effective participation in the global economy.

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Business

Stitch Introduces “Pay With Crypto” Solution In South Africa

Stitch, a payments infrastructure company, has unveiled its latest offering: the ‘Pay with crypto’ solution, marking a significant stride in payment methods available in South Africa. This innovative method empowers businesses to cater to an expanding customer base seeking to make purchases using cryptocurrencies while receiving settlements in South African Rand (ZAR).

South Africa has seen a steady surge in cryptocurrency adoption. Reports from Binance indicate that approximately 7.7 million South Africans now own cryptocurrencies, often acquired through popular platforms like Binance and VALR.

Globally, there’s a growing interest in using cryptocurrencies for transactions, with enthusiasts of this mode of payment tending to spend more than their counterparts. According to BitPay, up to 40% of customers utilizing Bitcoin for transactions are new, and they typically spend twice as much online as credit card users. Presently, around 15,000 businesses worldwide accept cryptocurrencies as a form of payment.

Junaid Dadan, President of Stitch, commented, “Cryptocurrency adoption in South Africa ranks among the highest globally. There’s a substantial audience eager to utilize their crypto for payments. Our introduction of the ‘Pay with crypto’ feature allows Stitch clients to tap into and serve this audience without exposing themselves to direct volatility risks.”

Through Stitch’s ‘Pay with crypto,’ South African businesses can provide customers with the option to deposit funds or complete transactions using cryptocurrencies stored in their VALR or Binance wallets, or directly through Bitcoin or Ethereum. Subsequently, these businesses will receive settlements in ZAR, eliminating concerns related to managing currency fluctuations.

The process is straightforward:

– Customers opt for “Pay with crypto” during checkout, selecting their preferred wallet and cryptocurrency.

– After confirming their mobile number and verifying with an OTP, customers proceed to their wallet app via an on-screen QR code and complete the payment using the specified amount of their chosen cryptocurrency.

– Stitch converts the cryptocurrency to ZAR and settles the merchant in ZAR on the following business day.

Blake Player, Head of Growth at VALR, expressed enthusiasm, stating, “The integration with Stitch leveraging the VALR Pay API opens up avenues for VALR customers to use their crypto balances within South Africa’s e-commerce landscape. The interest we’ve witnessed in the VALR Pay product has been exceptional, and we anticipate substantial growth in crypto payments as acceptance widens.”

Businesses across various sectors that accept digital payments can adopt ‘Pay with crypto.’ 

Examples include:

– Online marketplaces and e-commerce businesses: expanding customer reach by diversifying payment methods.

– Gaming and trading platforms: providing users the flexibility to fund their accounts using preferred cryptocurrencies.

– Travel providers, local and international: appealing to a broader user base and facilitating payments for global experiences and accommodations, while reducing international transaction fees significantly.

Businesses already utilizing Stitch for other payment methods can seamlessly integrate ‘Pay with crypto’ into their existing systems. Presently, Stitch’s infrastructure supports prominent global and African businesses in diverse sectors, including MTN, Luno, Multichoice, The Foschini Group (TFG), Standard Bank’s SnapScan, Yoco, as well as global PSP partners and leading consumer internet companies worldwide.

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Business

VALR Unveils Groundbreaking BTC/ZAR And USDT/ZAR Perpetual Futures Trading

VALR, Africa’s leading cryptocurrency exchange in terms of trading volume, has unveiled perpetual futures trading, introducing the world’s pioneering Bitcoin and USDT perpetual futures paired against the South African Rand.

The introduction of BTC/ZAR and USDT/ZAR perpetual pairs by VALR also includes the listing of BTC/USDT perpetual futures, presenting an alternative to major platforms such as Binance, ByBit, and Kraken.

Unlike their counterparts in traditional finance, perpetual futures lack an expiry date, enabling more sophisticated risk-management strategies. These instruments have become the most heavily traded in the crypto realm, accounting for over 75% of global crypto trading volumes.

Initially offering up to 5x leverage across all perpetual markets, VALR aims to enhance capital efficiency for traders.

Gianluca Sacco, VALR’s Chief Operating Officer, expressed, “We’ve developed what we consider the most seamless futures product in the entire industry. Our customers can seamlessly navigate across spot, spot margin, and perpetual futures markets, all within a single account and utilizing a unified collateral source. Trading perpetuals has never been this effortless.”

The launch of perpetual futures on VALR follows the successful introduction of spot margin trading. Furthermore, the exchange recently formed a partnership with Visa, the world’s largest payment network. VALR has also acquired approval to offer crypto services in Europe and is actively pursuing licenses in Mauritius and Dubai, having received initial approval from VARA, Dubai’s Virtual Assets Regulatory Authority.

Farzam Ehsani, VALR Co-Founder and CEO remarked, “We’ve received feedback from our institutional customers that our offering positions VALR strongly among the emerging global exchanges. This is a testament to the immense effort and dedication our entire team has invested in crafting this world-class product.”

Initially, perpetual futures trading will exclusively take place on VALR.com, with forthcoming support for mobile applications.

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Technology

Nigerian Bitcoin Mining Company Trojan Mining Unveils 500KW Hydro-Powered Site

Trojan Mining, a pioneering Nigerian bitcoin mining firm, has revealed plans for a substantial 500KW hydro-powered bitcoin mining facility in Nigeria. The announcement comes amidst a surge in global bitcoin mining initiatives gearing up or expanding ahead of the anticipated bitcoin halving slated for April next year.

Historically, bitcoin mining in Nigeria has grappled with challenges ranging from regulatory uncertainties to the scarcity of suitable locations, expertise shortages, and challenging economic conditions exacerbated by inflation, leading to fluctuating local electricity and hardware costs. However, significant shifts are underway in several of these areas.

The Nigerian Federal Government’s announcement in June, under the Electricity Act, empowered state governments to independently generate electricity and manage energy infrastructure, offering greater feasibility and economic viability for establishing mining operations in regions endowed with ample energy resources.

Trojan Mining, established earlier in 2021, stands as one of Nigeria’s limited bitcoin mining entities and is affiliated with the Green Africa Mining Alliance—an association of African bitcoin miners advocating for standardized renewable energy practices in mining.

Employing hydro-power for its mining fleet, Trojan Mining is expanding its setup to accommodate the newly unveiled 500 KW hydro-powered facility, inclusive of its maiden locally built mining container. The expansion initiative will introduce 150 additional ASICs (Application-Specific Integrated Circuits) in the upcoming months, entailing necessary electrical, hardware, and software upgrades, including a dedicated transformer installation.

CEO Yassar Siyanbola outlined their strategy, emphasizing, “Our approach revolves around harnessing green energy sources and collaborating with industry experts in the bitcoin mining domain.”

Siyanbola acknowledged the pivotal role of Gridless in offering crucial guidance and assistance throughout the facility’s development, with Texan bitcoin mining veteran Marshall Long extending support and expertise along the way.

As Siyanbola revealed, the hydro-powered facility marks the first of two planned endeavors. The subsequent facility, a 1MW capacity establishment, is slated to be situated near their current operations, envisioned to materialize over the coming months with support from external partners outside Nigeria, possessing mining expertise and ASIC supplies. Siyanbola added, “Trojan Mining’s ambition is to emerge as Nigeria’s premier Bitcoin mining farm.”

Moreover, leveraging its location in Nigeria, Trojan aims to engage local youth, providing education about bitcoin mining and opportunities for direct involvement, including employment, thereby contributing positively to the community.

Trojan’s recent facility launch and outlined plans underscore the increasing role of African miners in steering the Bitcoin mining sector toward a more sustainable future.

Looking ahead, anticipations arise for a surge in mining projects across Nigeria in 2024, with rising investor confidence in supporting mining ventures within the country. Concurrently, local miners are refining their expertise and understanding of pertinent factors, signaling an evolution in Nigerian Bitcoin mining practices.

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Business

Crypto Exchange Yellow Card Wins Prestigious Africa Financial Award

The prestigious Africa Financial Industry Summit (Afis) has honored Yellow Card, the Pan-African cryptocurrency exchange, with the coveted ‘Disrupter of the Year’ award, recognizing its groundbreaking contributions to the financial sector. This achievement marks a significant milestone, highlighting the increasing acceptance and integration of unconventional digital assets across the continent.

In an unprecedented win, Yellow Card, headquartered in Nigeria, clinched this esteemed award, making history as the first cryptocurrency company in Africa to receive such recognition. This acknowledgment from a traditional financial sector platform underscores a pivotal shift in embracing cryptocurrency technology within the industry.

Operating across 20 African nations, including Kenya, Uganda, Tanzania, and Rwanda, Yellow Card stands as one of the continent’s largest crypto exchange platforms. Beyond facilitating cryptocurrency transactions, the platform offers a cross-border payment service powered by stablecoins—cryptocurrencies backed by tangible assets.

Since its establishment in 2019, Yellow Card has not only provided a user-friendly platform for buying and selling cryptocurrencies but has also extended its services to assist established African businesses in acquiring and managing cryptocurrencies through an application programming interface (API) for seamless on and off-ramping.

Chris Maurice, the visionary founder of Yellow Card, expressed his belief in the transformative power of stablecoins, stating, “Stablecoins are going to change the world; they’re going to change the way people use money.” This ethos has been the driving force behind Yellow Card’s innovative approach to the financial landscape.

The judging panel, comprising five influential leaders from the financial industry, including representatives from the Central Bank of Mauritania and Ecobank’s innovation division, acknowledged Yellow Card’s disruptive impact on the sector. This recognition holds substantial significance amid the historical reluctance of banks and central institutions towards cryptocurrencies due to their volatility and perceived threat to monetary sovereignty.

Competing against other notable financial sector entities such as investment platform Bamboo, SME financier Sparkle, payment platform Moniepoint from Nigeria, and Cameroon’s Ejara, an investment platform, Yellow Card emerged triumphant in this year’s Afis award ceremony.

This recognition follows last year’s award conferred upon Jumo, a banking-as-a-service platform operating across seven African countries, including Kenya, Uganda, and Tanzania. The consecutive acknowledgments affirm the progressive integration of innovative fintech solutions into Africa’s dynamic financial landscape.