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Business

Ghana to host the Africa Money and DeFi Summit

Leading fintechs, investors, crypto platforms, ventures, and stakeholders in digital finance will connect at the Africa Money and DeFi Summit, which will be held in West Africa, specifically Accra, Ghana, on September 27 and 28, 2022.

The Africa Money and DeFi Summit is a leading African fintech, decentralized finance, mobile money, and crypto event brought by the curators of the Africa Tech Summit series. The event provides insight and networking within the pan-African fintech, DeFi, and crypto ecosystem.

Following the hugely successful Africa Money and DeFi Summit that was hosted in Nairobi earlier this year, Africa Tech Summit’s leading tech event series is bringing together and showcasing industry leaders like Polygon, Paystack, VerifyMe, Celo, Flutterwave, BitPowr, Visa, YouVerify, and Workpay among others at the upcoming Africa Money and DeFi Summit.

The two-day session will also provide insights on payments, crypto, DeFi, neobanking, mobile money, investing, BNPL, and mobile money.

Andrew Fassnidge, the founder of Africa Tech Summit, commented on the upcoming summit saying, “We are delighted to be hosting the West African edition of Africa Money and DeFi Summit, showcasing fintech leaders, crypto innovators, new rising ventures, and investment opportunities across the region.

He added, “The growth of crypto across Africa continues and a new wave of DeFi is coming, so it’s exciting times in the digital finance space for driving business and investment forward, with the continued support from our outstanding partners across Africa.”

In addition to 400 attendees, 150 firms, and 75 speakers who will address a variety of issues via panel discussions, keynote addresses, and fireside chats, the summit will also include numerous networking opportunities, masterclasses, and a fully booked exposition of cutting-edge businesses.
Visit this site to book your spot or learn more about the summit.

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Business

BitDAO to fund AfricaDAO with $20 million to boost Web3 adoption in Africa

The BitDAO community just approved a proposal to allocate $20 million in funding to establish AfricaDAO, a new decentralized autonomous organization and a new investment fund created to accelerate web3 development in Africa.

BitDAO, founded in 2021, wants to encourage the use of cryptocurrencies worldwide by funding projects and assisting with web3-based R&D initiatives.

Data from the voting page shows the vote ended on Tuesday with unanimous approval from all participants. The vote saw participation from 38 wallet addresses contributing 181 million BIT tokens in support of the AfricaDAO proposal.

According to the proposal, Africa is poised to be disrupted by Web3 because it’s the fastest growing and youngest population continent on the planet with great smartphone penetration (approximately 50%), 4G internet user-base growth, (going from 150M in 2022 to 300M by 2025) and increasing crypto adoption due to hyperinflation, instability, and high unemployment.

The proposal also highlighted three main focus areas for the fund including funding rounds for African companies, investments in Web3 talents across Africa, and supporting Web3-based educational initiatives. 90% of its funds will go toward investments and acquisitions in target companies while 5% will be used in acceleration, that is to say, sourcing and empowering the best talent. The remaining 5% will be used to organize Web3 educating initiatives and DAO operations.

Several partners have already soft committed $105 million to AfricaDAO. Following a legal assessment, BitDAO’s $20 million financing will enable it to join AfricaDAO as an anchor partner. Other partners include Polygon and Synthetix, among others.

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Business

Indian authorities seize Vauld’s assets worth $46 million

While Bitcoin [BTC] and other cryptocurrencies try to thrive through the bear market, projects in the industry are falling apart. It appears that regulators are now more stringent than ever. The Indian Government in particular still hasn’t warmed to the crypto sector yet. Prominent crypto platform, Vauld seems to be swimming in troubled waters as the Enforcement Directorate [ED] of India now has eyes on it.

The ED continued to freeze the company’s assets which were worth $46.5 million on Thursday.

According to the ED, the crypto exchange was used to deposit 3.7 billion Indian rupees by 23 entities, including non-banking financial companies and fintech firms, into the wallets controlled by Yellow Tune Technologies.

The agency also added that Vauld maintains very lax KYC norms, no EDD mechanism, no check on the source of funds of the depositors, no mechanism of raising STRs, among others. These factors have led the accused firm into avoiding regular banking channels and to easily take out all the fraud money in the form of crypto assets.

This development couldn’t have come at a worse time. It should be noted that in July, Vauld decided to stop all trading, deposits, and withdrawals from its platform. While attempting to emerge from bankruptcy, the company recently applied for protection from creditors. Later, it was revealed that the company owes its creditors $400 million.

With the ED freezing its assets, Vauld has landed in more trouble.

The love-hate relationship that Indian authorities entail with the crypto industry has been a difficult sight for crypto enthusiasts in India. Just last week, the ED froze $8 million worth of WazirX assets. Notably, WazirX was among the first cryptocurrency platforms and is presently the biggest exchange in the nation. In 2021, its volume even hit $43 billion.

It’s likely that the ED would take control over several other Indian Non-Banking Financial Company firms. Money laundering seems to be a significant concern to them at the moment.

The market has been negatively impacted by the 30% tax on cryptocurrencies in the midst of all of this.

Crypto experts claim that if this attitude is maintained, the Indian crypto ecosystem will almost certainly collapse.

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Business

Meet Betty’s Place, A Kenyan Restaurant Accepting Crypto Payments

Betty’s Place, a restaurant in Kenya, has achieved a first for the area by allowing guests to pay their bills with cryptocurrencies. The Nyeri County eatery allows customers to use Bitcoin (BTC)  to pay for their meals and beverages.

The restaurant’s owner, Beatrice Wanjiru, claims that the minimum BTC trading volume is Sh100 (currently 0.000035 BTC).

Customers need a digital wallet, which enables users to manage, store, transmit, and receive digital assets, in this case, Bitcoin, to pay for services at the restaurant.

Since the establishment of the restaurant in 2016, Wanjiru has since then accepted Bitcoin as a form of payment.

During an interview, she stated, “Money is evolving and it has been doing so since the barter trade. Cryptocurrency is beyond Kenya, it’s a worldwide revolution so we better follow suit or we will be left behind.”

Recently, Bitcoin advocate, Paco De La India visited the restaurant as part of his Run with Bitcoin tour that is focused on Bitcoin awareness all over the world. 

In her conversation with Paco, Wanjiru revealed that she is very interested in crypto and she is an avid investor and trader.

However, the Central Bank of Kenya (CBK) has still blacklisted virtual currencies and warned banks against dealing in them, citing security concerns.

CBK Governor, Patrick Njoroge emphasized, “There are risks associated with cryptocurrency, particularly on consumer protection, fraud, hacking and loss of data and they are prone to be used as pyramid schemes.”

He also recently stated that Kenyans should avoid peer-to-peer (P2P) cryptocurrency transactions since it is not regulated.

He said, “There are people who are excited about cryptocurrencies because they see it as a sort of investment that they can win big because prices are going up quickly, so they believe they would see a huge return from their investment. But I think that is why we say for every person who wins something, there are hundreds who lose”  

However, despite the warning, many Kenyans are still actively getting involved in the crypto industry.

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Opinions

UN Trade Body UNCTAD Calls for Halting Cryptocurrency Rise in Developing Countries

Cryptocurrencies have recently become an alternative form of payment. Transactions are now being done digitally through encrypted technology known as blockchain. Additionally, the use of cryptocurrency globally at an unprecedented rate during the COVID-19 pandemic reinforced a trend that was already in motion. 

The UN trade and development body, UNCTAD, has now called for action to curb cryptocurrencies in developing nations through its three policy briefs that were published this Wednesday. 

The three policy briefs explore the risks and costs of cryptocurrencies, including the dangers they pose to financial stability, the mobilization of domestic resources, and the security of monetary systems.

Although private digital currencies have rewarded some individuals and institutions, the UN trade body states that they are an unstable financial asset that can bring social risks and costs, the agency warned.

UNCTAD also adds that their benefits to some are overshadowed by the threats they pose to financial stability, domestic resource mobilization, and the security of monetary systems.

The first brief titled, “All that glitters is not gold: The high cost of leaving cryptocurrencies unregulated” examines the reasons behind the rapid uptake of cryptocurrencies in developing countries, including the facilitation of remittances and as a hedge against currency and inflation risks. 

Under this brief, UNCTAD stated, “Recent digital currency shocks in the market suggest that there are private risks to holding crypto, but if the central bank steps in to protect financial stability, then the problem becomes a public one. If cryptocurrencies become a widespread means of payment and even replace domestic currencies unofficially (by a process called cryptoization), this could jeopardize the monetary sovereignty of countries.

UNCTAD also highlighted the particular risk that stablecoins pose in developing countries with unmet demand for reserve currencies.  As their name implies, stablecoins are designed to maintain stability as their value is pegged to another currency, commodity, or financial instrument. 

“In developing countries with unmet demand for reserve currencies, stablecoins pose particular risks. For some of these reasons, the International Monetary Fund has expressed the view that cryptocurrencies pose risks as legal tender,” the trade body added.

The second policy brief is titled, “Public payment systems in the digital era: Responding to the financial stability and security-related risks of cryptocurrencies.” It focuses on the implications of cryptocurrencies for the stability and security of monetary systems, and financial stability.

UNCTAD said, “It is argued that a domestic digital payment system that serves as a public good could fulfill at least some of the reasons for crypto use and limit the expansion of cryptocurrencies in developing countries.”

UNCTAD suggests that monetary authorities could provide a central bank digital currency or a fast retail payment system, though measures will depend on national capacities and needs. The trade body also urges governments to maintain the issuance and distribution of cash given the risk of deepening the digital divide in developed countries. 

The final policy brief discusses how cryptocurrencies have become a new channel for undermining domestic resource mobilization in developing countries, and warns of the dangers of doing too little, too late. 

While cryptocurrencies can facilitate remittances, UNCTAD warned that they may also enable tax evasion and avoidance through illicit financial flows similar to a tax haven, where ownership is not easily identifiable. 

“In this way, cryptocurrencies may also curb the effectiveness of capital controls, a key instrument for developing countries to preserve their policy space and macroeconomic stability,” the agency added. 

In conclusion, UNCTAD urges authorities to take the following actions to curb the expansion of cryptocurrencies in developing countries:

  • Ensure comprehensive financial regulation of cryptocurrencies through regulating crypto exchanges, digital wallets, and decentralized finance, and banning regulated financial institutions from holding cryptocurrencies (including stablecoins) or offering related products to clients.
  • Restrict advertisements related to cryptocurrencies, as similarly done for other high-risk financial assets.
  • Provide a safe, reliable and affordable public payment system adapted to the digital era.
  • Agree and implement global tax coordination regarding cryptocurrency tax treatments, regulation, and information sharing.
  • Redesign capital controls to take account of the decentralized, borderless, and pseudonymous features of cryptocurrencies.
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Opinions

Kenyan Electoral Board Mirrored Bitcoin Blockchain To Implement A Transparent Voting System, According to Forbes.

On Tuesday, August 9, 2022, Kenyans held national elections, with the voting process closely mirroring the bitcoin blockchain, according to Forbes. Elections in Africa have typically been characterized by egregious misconduct and outright vote manipulation. However, the Independent Electoral and Boundaries Commission of Kenya  (IEBC) ensured that the election was conducted in one of the most transparent ways possible.

To begin with, votes cast in any one polling place were counted, signed, and accepted as a permanent record. Additionally, all polling places were divided into 46,229 units. 

Forbes says that this compares with the bitcoin network, which according to the bitcoin analytics company Bitnodes, has an estimated 14,951 decentralized nodes dispersed around the world.

Furthermore, to enhance security, the system combines manual and electronic transmission methods. Each polling place’s signed forms with QR codes are scanned by the Kenya Integrated Elections Management System (KIEKIE +1.3%MS) biometric device, and a copy is sent to the IEBC computers for reporting and analysis. While the signed physical forms serve as the signed transactions, the physical ballots in the voting booth serve as the verification protocol.

The IEBC then gathers and examines data from these polling places in its capacity as a neutral third party. This entails manually gathering all completed ballots, checking them against the computerized copy and the returning officer, and counting them within seven days of the election to declare the legitimate victors.

By 11th August, the IEBC had received and verified 46,193 of the 46,229 presidential election forms and was awaiting the 36 remaining forms so that the election results could be announced.

This contrasts with the simplicity with which blockchain analytics companies like Chainalysis can disseminate insights after querying data from the Bitcoin blockchain.

After the polls closed, officials of the political parties observed the entire voting process inside the polling place. They then counted every ballot and verified the results in the electoral system.

Once signed, the election form is considered a permanent record. The signed form is then electronically emailed by the IEBC representatives to the IEBC headquarters, followed by a physical copy being sent to the physical location. Then, party representatives provide a copy to their party’s headquarters to ensure transparency.

Each polling station has a maximum of 700 registered voters. The number of voters in the polling station are either the number of people who voted or the number of people who voted before the voting window closed. This means that each record contains 700 entries. In comparison, Bitcoin’s block size is one megabyte per block.

To vote successfully, a voter needed to bring an original copy of their national ID card, go to their registered polling station, and sign in using an IEBC biometric scanner. To sign a transaction in bitcoin, one must have a public address (similar to an ID card) and a private key (compares to fingerprints on the biometric scanner).

A form is posted online as an official copy after being received and verified by the IEBC headquarters and posted there. Candidates, party officials, members of the media, and voters can download this information and contrast it with their own copy from the polling place. Before the IEBC announces the official results, they can also count the votes to decide the election victors.

Forbes points out that this compares with the public nature of the bitcoin ledger, where anyone can query any bitcoin transaction and view its address.

The device sends an electronic signature to the IEBC servers after a voter enters a polling place using biometrics, informing them that the voter has cast a ballot. This fixes the double voting issue, whereas the blockchain of bitcoin fixes the double spending issue.

Votes simply need to be signed by the user and are kept on the IEBC database in the voting system. That is, all registered voters have their information recorded, and they only come to the polls on election day to sign the candidates that are their top choices. Likewise, you utilize your private keys to sign that your bitcoins are transferred to a particular public address because they are already stored on the bitcoin network’s ledger.

A candidate must get 50% of the total votes cast plus one in order to win the Kenyan presidential election. As a result, in order to rig the election, someone would need to alter the data from 50% of the polling sites plus one. The security of the voting mechanism would be ensured, although this would demand a substantial commitment of resources.

To hack the bitcoin network, at least one person would need to have control over 50% of the nodes plus one. This would need a significant amount of resources, solidifying bitcoin as the most secure financial network in existence.

When a transaction is signed on the bitcoin network, it becomes final, verifiable, and irreversible. The votes cast are also definitive, verifiable (you can go count the ballots in the box), and cannot be changed after they are noted and signed.

The consensus mechanism is different from that of bitcoin, according to Forbes. The distinction between the two is that top IEBC officials have the authority to transfer and amend voter registration information. Bitcoin doesn’t have a single administrator who has the power to shift money around or alter transactions.

Additionally, although the biometric voting machines at the polls have access to the complete voter list, they can only let in registered voters at that particular site. Any node on the bitcoin network is capable of signing a user’s transaction. This IEBC provision is apparently intended to prevent people from casting ballots in places they do not reside.

The voter registration ledger does not contain voting records. While the votes are still in their individual ballot boxes, the KIEMS device records the voter ledger and scans signed ballots. On the other hand, the addresses and bitcoins are both kept on the bitcoin ledger.

The global media company concludes that while it is debatable whether the system designer was directly inspired by the bitcoin network, the similar features are compelling to conclude that they were inspired by the bitcoin blockchain.

Categories
Business

Celo to launch its Web3 Fund initiative in Nigeria

Celo will be in Lagos, Nigeria for the next Web3 Fund event, which aims to assist Web2 entrepreneurs in receiving financial investment from its ecosystem partners, following a successful launch of the Web3 Fund in Nairobi, Kenya. The event will be happening on 23rd and 24th August 2022.

The call for Web2 startups and businesses is open to up to 60 Nigerian founders who will access equity investors, VC funding, technical, business, and marketing mentorship, as well as decentralized exchanges listing opportunities to interested candidates.

Applications are encouraged from Nigerian founders and businesses developing solutions in a few industries including, transfers of funds, cryptocurrency, savings, and lending.

In a manner similar to the Kenya Web3 Fund event, selected candidates will receive cash investments from the Celo Africa Web3 Fund VC Partners, while Tatum and Ape Unit, two of Celo’s technical partners, will also offer support in terms of technical help.

The physical workshop is a pioneering initiative of its kind, aiding business owners in gaining access to vital capital needed for growth and expansion across the African continent.

Founders will have a wonderful opportunity at the event to share and interact with VCs interested in supporting Web3-focused businesses in Africa.

The Celo Africa Web3 Fund expands on Celo’s active presence in several African nations, where it interacts with the local developer communities.

Furthermore, with the aid of global and local partners like Cinch, Mercy Corps Ventures, and Kotani Pay, Celo has been conducting ground-breaking pilot projects in the fields of microwork, micropayments, and DeFi lending.

To participate in the Web3 fund event, apply here.

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Business

Popular Bitcoin Advocate, Paco De La India Visits Nigeria To Promote Bitcoin Adoption

Paco De La India, a well-known bitcoin advocate, recently traveled to Nigeria to promote the usage of bitcoin for regular transactions. The bitcoiner will introduce Nigerians to the world of opportunities that bitcoin offers. The bitcoiner is on a goal to explore 40 nations in 400 days as part of his Run with Bitcoin tour, which is supported in part by peer-to-peer platform, Paxful.

During his stay in the country, Paco hosted community meet-ups in three major cities across the country, beginning with Lagos. One event took place in Kaduna yesterday, and the other will take place in Abuja on the 13th of August.

The meet-up events, organized by Paxful, are an opportunity to discuss the use cases of bitcoin through community engagement with the goal to empower users to attain financial freedom.

Ray Youssef, CEO, and Founder of Paxful commented on the Run with Bitcoin Tour and said it’s a great approach to promote education and demonstrate to people how they can fully utilize bitcoin’s potential.

He said, “The first step to global Bitcoin adoption is education. Paco’s tour echoes Paxful’s mission to educate the community on what Bitcoin can really do. Through these community events, we will continue to inspire and deepen adoption of Bitcoin across this special country.”

Paco expressed his excitement saying he is thrilled by the genuine interest in Bitcoin among Nigerians. 

He said, “We had a great turnout at our first event in Lagos. It’s exciting to see the enthusiasm and positivity of the people — it’s clear that Nigeria is truly the Giant of Africa when it comes to adoption. Whether they are new to bitcoin or are seasoned traders, they are eager to learn more about what bitcoin can do while meeting people with similar interests.”

Throughout his tour, Paco is challenging himself to use bitcoin for his everyday transactions while connecting with other bitcoiners along the way. 

At the end of his visit, Paco will head to Cameroon, Central Africa, South Sudan, and Ethiopia. Aside from Nigeria, which is the 17th country he is touring, Paco has also visited India, UAE, Thailand, Kenya, and Rwanda, amongst others. 

Paco is an avid connector of people and ideas, so the Run With Bitcoin tour is bringing together Bitcoin commoners in towns, nations, and across boundaries. Paco is always looking for individuals and locations that take bitcoin payments for food, lodging, transportation, and gear because his voyage is planned to only use bitcoin.

Paco hopes to link the African bitcoin plebs by the end of his tour of the continent with his planned first African bitcoin conference to be hosted by Africans for Africans.

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Business

Australia’s central bank launches digital currency pilot

The Australian central bank has announced that it will study any potential economic gains from the introduction of a central bank digital currency (CBDC).

In a recent statement, the Reserve Bank of Australia (RBA) announced that it would conduct a year-long pilot project to investigate novel use cases and business models for a CBDC and improve its understanding of related technological, legal, and regulatory issues.

The RBA will collaborate on this project with the government-backed industry group Digital Finance Cooperative Research Centre (DFCRC), which will ask business leaders to create specific use cases that show how a CBDC could offer cutting-edge payment and settlement services to consumers and businesses.

The RBA stated that the pilot’s findings will guide continued research into the viability and acceptability of a CBDC in Australia.

“This project is an important next step in our research on CBDC. We are looking forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia,” RBA Deputy Governor Michele Bullock said in a statement.

The International Monetary Fund estimates that almost 100 nations are considering implementing CBDCs, with some countries, like China and the Bahamas, actually releasing their digital currencies to the general population.

Advocates of CBDC claim that the emerging technology will facilitate quicker and less expensive transactions, advance financial inclusion, and provide central banks more monetary policy flexibility.

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Social Good

Algorand Foundation Partners With Boston University to Support African Farmers Using Blockchain

Non-profit organization that supports the Algorand network, Algorand Foundation, has announced a partnership with Boston University and Kenyan agricultural company Hello Tractor. The new partnership intends to introduce blockchain technology to boost African farmers’ productivity.

With the latest partnership, Boston University will utilize a blockchain-based solution dubbed Tokenomics, which was built with the help of Algorand, to aid Hello Tractor in scaling through institutional and infrastructural problems in Africa thereby enabling protected bookings and storage of information about tractor activities.

Realizing the rising food shortages and underlying low technology in the African agricultural sector, Hello Tractor seeks to curb these deficiencies. The mission of the company is to establish a digital ecosystem in the agricultural sector by aiding African farmers with tools and machinery such as tractors to increase the production and circulation of food.

The company also connects tractor owners with African farmers, who both profit from the business, as one of the main ways it accomplishes this. However, several obstacles, such as poor roads, a lack of privacy legislation, and a significant reliance on fiat money, dwarf the adoption of Hello Tractor’s services throughout many regions and African communities.

This partnership will provide an opportunity for the parties involved to receive rewards in the form of digital tokens.

A recent study states that having access to tokens will also enhance the functionality of Hello Tractor’s current mobile and web app platforms by providing incentives for farmers, tractor owners, travel agencies, and investors to remove access barriers.

Will Tomlinson, Director of the Boston University Software & Application Innovation Lab (SAIL) commented on the partnership, noting that it will enable the U.S. university to contribute to the agricultural growth of the African region.

“Through software development, we get a chance to change lives, while also expanding our internal know-how within our Privacy & Security domain of expertise,” he said.

Algorand has recently intensified its effort to raise public awareness about cryptocurrencies by collaborating with leading institutions like educational institutions. The Algorand Foundation and New York University (NYU) joined up in late February to strengthen information privacy by utilizing cryptography.

The business has collaborated with an Italian university to launch a center for cryptocurrency research.