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Nigeria aims for millions of new eNaira users and is targeting the unbanked with its CBDC upgrades

eNaira, the central bank digital currency (CBDC) of Nigeria, will enter the second phase of its expansion with new technologies to increase its user base, according to Godwin Emefiele, governor of the Nigerian Central Bank, who recently spoke to participants at the eNaira Hackathon in Abuja.

The technical upgrades will add to the attractiveness and accessibility of the CBDC.

“The second phase of the project has begun and is intended to drive financial inclusion by onboarding the unbanked and underserved users with a target of about 8 million active users,” Emefiele said. 

“We don’t have a choice but to live with the fact that we are now in a digital economy, in a digital space, where the user[s] of cash will dissipate almost to zero,” he added.

The Governor also highlighted that the CBDC has had about 840,000 downloads, with about 270,000 active wallets, including 252,000 consumer wallets and there have been about 200,000 transactions worth 4 billion nairas (about $9.5 million at the official exchange rate).

Speaking about the upgrades he said, “The central bank is incorporating Unstructured Supplementary Service Data (USSD) in the coming weeks to allow users to create eNaira wallets by dialing a four-digit code on their mobile telephones, whether or not they have bank accounts. After that, users with bank accounts will be able to use the Nigeria Inter-Bank Settlement System (NIPS) instant payment system to make transfers between bank accounts. The eNaira already has apps allowing the user to pay for utilities and a number of other services.”

The eNaira platform will also be enhanced with the eNaira Hackathon platform, adding to its features.

Despite the country’s implied ban on cryptocurrencies, the naira and the eNaira face fierce competition from cryptocurrencies because of the instability of the fiat currency.

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Business

Colombia to introduce Central Bank Digital Currency

The director of Colombia’s tax and customs agency, Luis Carlos Reyes recently revealed that Colombia may introduce a central bank digital currency (CBDC). The South American nation’s new government says it is looking to create a digital currency that would make transactions easier for consumers.

Reyes explained that the currency would help the country to have more control over transactions and payments. This would ostensibly allow the country to curb tax evasion, which is estimated to represent up to 8% of the GDP of the country.  

In the same way, the regulators will be studying to establish limits on the amount of money that can be paid using cash to incentivize the use of digital, trackable alternatives.

It is the first time Colombia’s government has talked about introducing one since Colombia’s new president, Gustavo Petro, took office on August 7.

An ex-guerilla and the country’s first-ever left-wing president, Petro has always shown an interest in digital assets. Additionally, Petro pointed out last year while campaigning that the country should mine Bitcoin using renewable energy instead of producing cocaine.

Furthermore, Leonardo Villar, manager of the Central Bank of Colombia, said that the central bank was studying the issuance of a digital currency during a banking convention at Cartagena. Villar explained that the functions and the convenience of such currency were being reviewed by the Bank.

According to Villar, one of the biggest objectives of the digital currency is to make the different digital wallets that are available in the nation interoperable. The current design is said to be very inefficient and does not allow for users of the wallets to pay for state-related expenses like taxes.

Colombia is becoming increasingly crypto-friendly. Also known as Latin America’s fourth largest economy, last month the country released draft rules for crypto companies that want to operate in the country.

The country’s major banks have recently partnered with crypto exchanges such as Binance, in an experimental project which allows customers to buy small amounts of digital assets like Bitcoin and Ethereum through their largely traditional channels.

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Business

EMURGO and Adaverse re-emphasize their commitment to funding blockchain-oriented startups

The EMURGO and Adaverse executives recently hosted founders and members of blockchain communities and media at the Blockchain Founders Hangout 2.0.

The hangout provided a forum for networking and idea sharing and brought together investors from EMURGO and Adaverse, startup founders, and potential entrepreneurs. The EMURGO and Adaverse teams were given the chance to hear quick pitches from the startup founders about their enterprises.

In attendance were Shogo Ishida, Executive Director for Middle East and Africa, EMURGO Africa; Yosuke Yoshida, Co-CEO for Middle East and Africa, EMURGO Africa; William Phelps, Adaverse Investment Manager; Hiroshi Yokoyama, Growth Partner, Cardano Africa; Chimezie Chuta, Adaverse Partner, and other members of the EMURGO and Adaverse teams. 

In her introductory remarks, Chimezie Chuta discussed how blockchain technology may change people’s lives and how this inspired the creation of Adaverse, a Cardano Ecosystem Accelerator aimed at sponsoring blockchain-related entrepreneurs in Africa.

Chuta also said that they had done their research and are looking at the areas where people can get funding. In addition, beyond funding, Adaverse also teaches people other things they need to grow their startup via an accelerator program. 

A brief presentation on the Cardano Foundation and EMURGO was given by Yosuke Yoshida. In his opinion, Cardano is a third-generation blockchain. Ranked sixth in the crypto market cap, it is an open-source proof-of-stake blockchain project launched in 2015 to address existing challenges in cryptocurrency design and development. 

According to Yoshida, the Cardano blockchain is solving the issues of scalability, interoperability, and sustainability better than other blockchains, adding that the goal of the Cardano Foundation is to be the leading project for the next decade.

He also discussed the development benefits and advantages of the Cardano blockchain over most blockchains and listed some of EMURGO’s products, including the Yoroi Wallet and Fibo, Cardano’s open-source NFT marketplace. 

Shogo Ishida followed after Yoshida’s presentation and spoke on how founders can get funding from venture capital (VC) firms. 

Using AfriBlocks’ success story as an example, Ishida said people seeking funding should have a clear and concise mission statement. Secondly, he said that the solutions to the problems businesses are trying to solve must align. Also, the projects should match their achievements with milestones shown as evidence. He concluded by advising founders to have a team with members whose careers are relevant to what they are building.

Additionally, he recommended that companies initially grow naturally rather than rushing to secure finance. He claims that enterprises that are bootstrapped are more promising to investors than ventures that are not.

He said founders should always ask themselves if it is the right time to give away equity. 

He concluded the event by advising the founders present to know their projects, be clear about what they are looking for in terms of funding, and exercise patience.

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Business

Ghana’s Mybitstore app becomes the Paxful and Coinbase of Africa

The peer-to-peer functionality of Paxful and the direct sales of cryptocurrency approach by Coinbase have been combined into a multi-functional app by Ghanaian-based cryptocurrency trading platform Mybitstore.

Ghanaian tech developer Benjamin Anderson designed a program that allows cryptocurrency traders from all over the world to buy Bitcoin and sell Bitcoin using peer-to-peer means or local payment systems.

The Mybitstore app provides a platform for the purchasing, selling, and receiving of bitcoin as well as the conversion of mobile money into bitcoin. Customers can also convert leftover gift cards into bitcoin and vice versa.

In addition to providing users with a free bitcoin wallet, Mybitstore, which can be accessed through the Google Play Store and the Apple App Store, supports over 250 payment methods, including mobile money (such as Tigo Cash, Vodafone Cash, and MTN Mobile Money), bank transfers, in-person cash payments, Chipper Cash, Paypal, Perfect Money, and Western Union.

According to Mr. Benjamin Anderson, the Ghanaian cryptocurrency trading industry has received a significant boost, which is the single biggest boost for the purchasing, selling, and using of cryptocurrencies.

He asserted that little to no trust exists in cryptocurrency transactions, particularly those that rely only on blind peer-to-peer trust, despite the comparatively widespread use of cryptocurrencies in Ghana.

The Bank of Ghana has taken note of recent changes in the use, possession, and trading of virtual or digital currencies like Bitcoin. In order to secure electronic and online financial transactions, the Bank of Ghana is currently allocating a sizeable portion of its budget to improving the payments and settlements system, including the usage of digital currencies.

In addition, Anderson noted that a reform is currently being implemented that should bring the electronic payments sector up to speed with global standards and align it with the fast-evolving electronic payments landscape globally.

Mr. Anderson assured users that the software is built to resist and get rid of all external dangers in terms of cyber security.

“Trust and security are at the heart of every financial transaction. By utilizing a few particular features, the app is designed to allay any uncertainties and safety worries. Mybitstore holds the bitcoin in its safe escrow until you sell any of the tradable cryptos. Mybitstore moderates all transactions with inconsistencies through the raise dispute option to ensure smooth and successful trades,” he continued.

Mr. Anderson further said that users of the app have the option to rate, review, and most crucially, make secure transactions.

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Opinions

Illicit crypto activities have declined this year, according to Chainalysis Report

The blockchain data analytics company Chainalysis released its mid-year cryptocurrency crime report titled “Illicit Activity Falls With the Rest of Market, with Some Notable Exceptions.” recently.

According to the report, illicit cryptocurrency transaction volume decreased by 15% alongside legitimate transactions due to the general price drops in the market. As a result, total scam revenue this year now sits at $1.6 billion, which is 65% lower than the level seen in July 2021.

The company stated in its report, “In comparison to respectable quantities, which are down 36% year over year, illicit volumes are down just 15%. Total scam profit for 2022 currently rests at $1.6 billion, and 65% lower than what it was a mid-2021, and this reduction looks tied to declining pricing across different currencies.” 

The organization also pointed out that, so far in 2022, there have been fewer individual transfers to schemes than at any time in the previous four years.

These numbers suggest that the number of victims of the bitcoin scam is declining. This condition may result from the falling value of assets, which makes potential victims less interested in falling for bitcoin scams.

The blockchain data platform also stated that darknet marketplace revenue is currently 43% behind the previous high set in July of last year. Following the closing of Hydra Marketplace, which was acting as the main harbor for illegal performers, the proceeds significantly decreased in April.

The research also reveals that, despite a general decline in revenue from cryptocurrency scams and darknet operations, losses from the hacking of the decentralized finance (DeFi) protocol are still increasing.

According to the report, up to $1.9 billion in crypto assets have been stolen from the DeFi sector due to protocol exploits through July 2022. As of July 2021, only a total of $1.2 billion in protocol exploits was recorded, thereby setting the new record 58% higher. DeFi protocols are more susceptible to attacks given that the codebase is usually open source, which hackers can study for even the slightest flaw to steal crypto assets.

Chainalysis also emphasized that this trend doesn’t appear to be reversing any time soon, with a $190 million hack of cross-chain bridge Nomad and a $5 million hack of several Solana wallets already occurring in the first week of August.

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Opinions

Crypto industry sees the lowest KYC fraud in Africa in the first half of this year

Despite a 30% increase in Know Your Customer (KYC) onboarding in Africa, the crypto industry appears to have faced the fewest fraud cases, according to the most recent KYC fraud report from the industry leader in KYC services, Smile Identity.

The ‘Know Your Customer (KYC)’ process is a requirement that helps businesses identify their users and verify their credentials.

The report states, “Buy Now Pay Later (BNPL) companies are seeing high rates of fraudulent attempts as fraudsters try to get away with more opportunistic crimes. On the other hand, crypto companies in Africa are noting lower fraudulent attacks than expected.”

“Large, difficult to trace, high-profile scams have plagued the crypto market often giving them a notoriously bad reputation and intense scrutiny from regulators. Yet, Smile Identity’s data shows that the crypto platforms are actually reporting a lower rate of attempted fraud than other industries,” the report added.

In addition, according to the report, BNPL takes the lead with 39%, investments and savings follow with 31%, banking and lending and professional services take third place with 14%, remittances follow with 12% and then crypto has the least KYC frauds with 12%.

Fraud attempts have also increased by 55% in the last 2 years, according to the report.

The research also reveals that fintech and cryptocurrency service providers throughout the continent have increased their use of remote KYC services by roughly 30%. It also adds that regulatory compliance and fraud protection are the two main reasons why fintech and cryptocurrency companies perform KYC checks.

Smile Identity plugs its software to Identification (ID) databases across several jurisdictions including Kenya, South Africa, and Nigeria.

Additionally, their research shows that in H1 2022, biometric fraud decreased in the other two nations but increased in Kenya.

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Business

KFC India launches NFT artwork that gives a year’s supply of chicken

KFC India has launched KFC BuckETH, its own non-fungible token (NFT) collection. This kickstarts the quick service restaurant chain’s journey in the crypto space. The NFT, curated from designs by artists across the country, is up for grabs in a social media contest. The winner of the contest will also get a year’s supply of KFC, according to the company.

The NFT was dropped recently during an Instagram Live hosted by comedian, writer, and actor Danish Sait, and influencer Sharan Hegde.

KFC collaborated with Blink Digital to create KFC BuckETH on the Ethereum blockchain, which was then hosted by OpenSea. The artwork was created to commemorate the fast food chain’s achievement of reaching 600 locations across 150 cities in the nation. It is considered an “ode to the unique melting pot culture that is India.”

In a press statement, KFC stated, “The Bucket is as iconic to KFC as the signature taste of our chicken. The Bucket is a testimony to the brand’s heritage and has been an integral part of many celebratory moments for our customers. We are excited to usher the Bucket in a new way, in the new-age digital world, with our first NFT – KFC BuckETH – curated from vibrant designs by budding artists. The KFC BuckETH presents KFC fans with an opportunity to connect with the brand in the most unique manner ever.”

In order to participate in the contest for the NFT, you will first need to visit KFC India’s official Instagram handle @kfcindia_official and screenshot the “Ultimate Chicken Lover Checklist,” which will be available in the account’s Stories. 

Then, you need to fill out the checklist with GIFs, images or text and post it to your Instagram story while tagging KFC. The restaurant chain will select one winner who will get ownership of the KFC BuckETH NFT, and the year’s supply of KFC.

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Business

South African Central Bank encourages banks to work with crypto exchanges

The South African Reserve Bank’s Prudential Authority (PA) has issued a guidance note to banks encouraging them to provide banking facilities to crypto exchanges. 

The note to banks and other financial institutions was penned by PA CEO Fundi Tshazibana.   According to Tshazibana, banks outright terminating cryptocurrency companies’ accounts additionally threatens monetary integrity generally.

As a result, the regulator encouraged banks to evaluate risks on an individual basis rather than completely shunning cryptocurrency-related businesses.

Tshazibana’s guidance note comes after First Nationwide Bank (FNB) closed accounts for the major cryptocurrency exchanges in South Africa, including Luno and VALR, in March 2020. In November 2019, it informed them.

 VALR CEO Farzam Ehsani lauded the guidance note calling it a great step forward for crypto in South Africa, and for the banks themselves.

He said, “The authority has realised it is time to bank crypto companies.”

Tshazibana’s note also notes that risk assessment by the banks does not necessarily imply that institutions should seek to avoid risk entirely (also known as de-risking), for example, through wholesale termination of client relationships that may include CASPs.

This announcement comes after Binance CEO “CZ” Changpeng Zhao echoed this view in a recent interview with MyBroadband.

Zhao stated that though it sounds counterintuitive, working with cryptocurrency exchanges, and licensing them to operate is better for regulators than making an attempt to dam them.

He additionally stated one of the simplest ways international trade monitoring boards can implement foreign money controls is to permit banks to work with cryptocurrency exchanges.

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Business

Portchie launches South Africa’s first generative NFT art collection

The South African artist Portchie, who has already sold more than 18 000 unique works of art, has now made history by being the first in the nation to sell a collection of generative art using non-fungible tokens (NFTs).

Beginning the following week on Thursday, August 25, 2022, Portchie, whose true name is Jan Hendrik Viljoen, will release a collection of only 1000 NFTs using a random digital generator.

Portchie collaborated with a group of innovative technologists to develop a system that will enable each NFT to be created digitally. This implies that each of the numerous hand-painted components and their variations has a chance to be randomly chosen and then combined to produce a distinctive work of digitally made art.

He introduced the new project saying, “Art is something that brings joy to my eyes and mind and that makes life special for me. This project called ‘Cycling by the riverside’ is very exciting because I’m not a digital artist, but I am able to achieve something like this.”

Those who want to join the Portchie whitelist are encouraged to go to Discord and sign up to join the “Cycling by the riverside” community of fans and art lovers. 

In addition to owning the digital asset, each NFT will enable its owner to redeem a high-definition print of their collectible, signed by Portchie himself. He will also accept a limited amount of commission requests from those who would also like a painted copy of their unique collectible.

Portchie had his first significant solo exhibition in 1991, which sold out completely then went on to open The Red Teapot Gallery in 1995, where other art galleries in Stellenbosch, on the Cape Winelands, began purchasing his work.

His artworks are a trademark of vibrant colors, distorted shapes, and blue trees and is often described as a burst of joyful colour. 

Since his debut, he has sold more than 1 million copies and over 18 000 original paintings worldwide. In contrast to limited editions or prints, this NFT collection will only consist of unique collectibles, which means you will not be able to find two that are a copy of each other.

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Business

Ugandan startup, ShukuruCrypto hopes to demystify crypto for locals

We’ve grown up knowing that money is largely paper and comes in the form of notes. That is why it’s a lot easier for one to identify the US Dollar and differentiate it from the Euro or Uganda Shilling.

The way we perform what we do and even how we see things has changed as a result of technological advancements over time. Currently, digital currencies and money also known as cryptocurrencies are taking over. However, as the global craze for cryptocurrencies grows, many people are unaware of what they actually are.

ShukuruCrypto, is working towards helping local Ugandans understand crypto payments by enabling them to access the service through USSD.

According to the founder, Mwesigwa Jovan Balambirwa, many people are intimidated by the charts and tokenomics in the crypto industry and he hopes that with easy access to crypto services through USSD, they will be encouraged to participate in the crypto world.

He said, “ I developed ShukuruCrypto, when most of my friends wanted to start using crypto, but always got intimidated by the charts and tokenomics that lies in most of the crypto exchange apps. They wanted something simple that is similar to how Mobile money works but instead using crypto.  I thought, why not make something familiar to everyone but at the same time use the new technology.”

“I think it will open doors to everyone that wants to use crypto in their lives because all you need is a phone, any phone with GSM network can work and carry out the transactions,” he added.  

Jovan’s crypto journey started in 2018 after he read Mastering Bitcoin by Book by Andreas Antonopoulos.

With this guide, he was able to gain a few insights on designing programs on the blockchain. He also added that he was intrigued by the whole concept and was able to assess the limitations of building blockchain applications. 

Given that his tech background, skills, and knowledge were an added advantage, he was able to come up with the ShukuruCrypto solution. 

At the moment, the solution is still in the beta stages of development and the team hopes to launch it next month. He said,

“Currently, we are still in the beta stages of our development, working to launch next month. We’ve been running some tests all along and we’ll continue to do as we work on to improve the service for the better.”

Jovan also pointed out that the adoption of crypto in Uganda is steadily growing and with current economic problems like inflation, most people seem to be relying on crypto despite the existing bear market.

He further adds that this is why ShukuruCrypto intends to make it simple for the locals.

“With current problems like inflation, I think crypto is becoming the other option. ShukuruCrypto intends to make it simpler that even someone in the village can have crypto transactions without looking at charts, buying an expensive phone, or paying for expensive internet.”

At the moment the platform only has Bitcoin, Ethereum, and USDT and hopes to add more currencies to give the application a big sense of fluidity and more options for everyone to benefit.