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Business

Moroccan Crypto Ownership On The Rise Despite Ban

Despite the current statewide ban on cryptocurrency ownership and trade in the country, Morocco has the highest ownership rate in North Africa, rising from 2.4 percent in 2021 to 3.1 percent in 2022.

A recent analysis by DataPortal on the state of crypto adoption globally found that the majority of men between the ages of 16 and 44 are the ones who own cryptocurrency.

As of the beginning of August 2022, Morocco’s official regulation makes it illegal to own and trade cryptocurrency.

Despite the ban, Bank Al-Maghrib (BAM), the central bank of Morocco, recently declared that it was holding discussions with the IMF and other nations to create a legal framework that would open the door for future adoption. BAM even stated that it is currently considering the idea of releasing its own central bank digital currency (CBDC).

Morocco is adopting a wait-and-see approach out of concern that it may lose control over its economic and monetary sovereignty, according to a recent report by the Moroccan Institute for Policy Analysis (MIPA) that examined how Morocco is addressing the growing trend of crypto adoption.

According to the think tank, the central bank of Morocco and the nation’s banking industry, which are both important stakeholders in the ecosystem, are seriously threatened by the decentralized nature of crypto assets.

According to MIPA’s report, Moroccan financial watchdogs are under increasing pressure to develop a regulatory framework for cryptocurrency-related operations as adoption picks up speed.

Given that blockchain transactions are not confined by physical limits, adopting crypto-based monetary transactions would also mean that Morocco’s central bank would have little control over capital flight.

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Business

Cointelegraph expands to the Middle East and North Africa

With the aid of Luna Media Corporation, Cointelegraph, a crypto-focused media outlet, is expanding its footprint to the Middle East and North Africa. The new franchise will be crucial to increasing the exposure of blockchain projects and activities in the MENA region to a global audience.

Based in Dubai, Luna Media Corporation is a media holding group that aims to promote the Web3 industry through a variety of unrelated ventures and investments. Furthermore, Cointelegraph has been at the forefront of blockchain and Web3 news, covering cryptocurrency, nonfungible tokens (NFTs), the metaverse space, decentralized finance (DeFi) and other emerging financial technology since its launch in 2013.

Elijah Leyb, the Vice President of global operations at Cointelegraph who oversees 10 local versions of the site said that the company is looking forward to securing its position in the very promising MENA region with the new partner.

Commenting on the new development, the Cointelegraph editor-in-chief Kristina Lucrezia Cornèr also stated:

“The MENA region is booming with innovative projects, including blockchain and crypto, and it is an amazing opportunity for us to grow our readership through original content produced in Arabic from within one of the most active modern hubs of the fintech community, Dubai.”

The key news and technological developments in each region’s nations will be covered by Cointelegraph MENA in Arabic. The publication will have a significant impact on a market that is rapidly growing. 

The MENA region has been a hub of activity in the crypto and blockchain space in recent years. The United Arab Emirates has been leading the charge with its regulatory efforts and is home to a number of major blockchain and crypto brands.

It is also important to note that in 2021, Morocco was the most popular Bitcoin (BTC) market in North Africa despite the fact that it’s illegal in the country. As reported by Cointelegraph, the “Kingdom of the West,” as it’s known locally, was the runaway North African leader in Bitcoin trading in 2021, just narrowly edged out by Saudi Arabia when looking at the entire MENA region.

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Business

Binance CEO meets the President of Central African Republic to discuss crypto adoption

After formally recognizing Bitcoin (BTC) as legal tender, the Central African Republic continues to draw attention from the cryptocurrency ecosystem. Since the new legislation, the country’s leaders have engaged different crypto stakeholders as part of utilizing the sector’s benefits. 

In this line, the country’s president Faustin-Archange Touadéra met with Changpeng Zhao (CZ), CEO of Binance cryptocurrency exchange, to discuss different elements of crypto including adoption, education, investments, and regulatory frameworks. 

Zhao verified the meeting in a tweet he sent out yesterday, outlining the topics they had covered.

This comes after CZ’s recent West African Tour in Senegal and Ivory Coast which is part of his global plan to further boost crypto adoption in Africa.

Although questions have been raised regarding Africa’s readiness to adopt cryptocurrencies, CZ maintains that the region is ready and has since partnered with platforms like Jokkolabs, one of Africa’s first social impact hubs. Through this partnership, Binance will launch a blockchain awareness and education program throughout communities in Francophone Africa. 

CZ further emphasized the significance of blockchain to Africa’s financial industry and Binance’s commitment to working with African policymakers.

He said, “Africa is primed for crypto adoption as blockchain provides financial accessibility which isn’t currently available to lots of Africans.”

CAR is not only popular for being the first African nation to adopt Bitcoin as legal tender, but it is also known for launching the Sango Project, a legal bitcoin and cryptocurrency hub that aims to take the Bitcoin legacy to the next level and institute a cryptocurrency economic zone in the Sango Island where users will be able to propose, view, and contribute to its future developments.

The meeting between the president of CAR and the CEO of Binance is a hint of potential cooperation and partnership as CAR presses forward with its efforts to establish a bitcoin hub and tokenize its currency despite criticism from both African and global financial and monetary organizations.

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Business

SiBAN To Host An Inaugural Peer-to-Peer (P2P) Conference in Lagos

Stakeholders in Blockchain Association of Nigeria (SiBAN) are set to deepen the knowledge and use of blockchain technology in the country through the inaugural Peer-to-Peer (P2P) Conference set to happen on the 6th of August, 2022 at the Civic Centre, Victoria Island, Lagos.

The conference, which will be a hybrid event, is part of the association’s commitment to educating users and the general public about blockchain technology and promoting its adoption by both private and public bodies, according to Mr. Senator Ihenyen, President of SiBAN, who recently spoke to the media about the upcoming event.

“Blockchain is one of the biggest opportunities for Africa in the 4th Industrial Age. Nigeria is Africa’s biggest country and one of the biggest players on the globe. We understand the challenges in this ecosystem as well as opportunities for Nigerians. That is why we have a lineup of a rich panel of experienced and successful leaders in this space to speak on the theme, ‘CeFi, DeFi & TradFi: is there a need for Convergence in the Current Divergence,’” Ihenyen said.

He explained, “With this P2P Conference 2022 theme, we wish to have an open conversation about the emergence of blockchain technology, its application across the spectrum of CeFi, DeFi, and TradFi, and consider whether a convergence of these three is the better way to go for both innovators and regulators.”

Jude Ozinegbe, Chairman of the Organising Committee for the conference, further revealed that the P2P Conference 2022 will be targeting up to 5000 participants, bringing players, policymakers, and the public together. 

Ozinegbe who is also the Convener of Cyberchain added, “The conference will provide participants with networking opportunities while serving as a vehicle to drive awareness of the economic value of what we do.  Participants will also enjoy access to conference talks, workshops, and other learning opportunities and get to network with speakers, guests, and other conference participants.” 

Chukwuemeka Ezike, the association’s Vice President for Media and Publicity, added that registration is required but that attendance at the P2P Conference 2022 is free and accessible to everybody.

Rume Ophi, founder of the esteemed CryptoPreacher Blockchain Academy (CPBA) and a crypto market analyst for Channels Television, is one of the speakers SiBAN has lined up for the conference.

He pointed out that the leadership of the conference committee couldn’t have chosen a better theme in the face of the current economic realities of the country. Noting that Nigerians are at the forefront of the adoption and utilization of blockchain and cryptocurrency in Africa. Rume is optimistic that the quality of speakers at the conference will make invaluable contributions to the alternative finance space in Africa.

Click here to register for the conference.

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Opinions

CBDCs Could Be ‘Holy Grail’ of Cross-Border Payments, European Central Bank reports says

Several solutions can potentially improve cross-border payments significantly and central bank digital currency (CBDC) could be the “holy grail,” according to the European Central Bank (ECB).

In its recent report, the ECB stated that a CBDC offers a solution that is immediate, cheap, universal in terms of reach, and settled in a secure settlement medium. 

The report titled “Towards the holy grail of cross-border payments” is co-authored by ECB’s Director-General for Market Infrastructure and Payments, Ulrich Bindseil, and economist George Pantelopoulos.

The report highlights that for the first time, the “holy grail” of such transactions is within reach, thanks to declining data transfer costs, the birth of innovative concepts, and global collaboration aiming to enhance these payments. It also states that the interlinking of domestic payment systems and the future interoperability of CBDCs are the most promising avenues.

The experts have examined a number of existing options, including stablecoins, updated correspondent banking, fintech products, and digital currencies issued by central banks, or CBDCs, like bitcoin and other cryptocurrencies.

The paper also underlines that stablecoins, despite occupying a middle ground, can provide even greater challenges because of the use of closed-loop solutions, their market dominance, and their fragmentation. Other hazards include currency substitution and the threat to monetary sovereignty. However, the authors acknowledge that they can be effective as a form of payment for a number of reasons, including their steady value tied to the value of currently used fiat currencies and their potential for global adoption.

Two alternative approaches, according to the experts, combine technical viability and relative simplicity while preserving a competitive and open architecture by preventing the dominance of a small number of market players who might eventually abuse their market position.

The experts believe these are,

“The interlinking of domestic instant payment systems and future CBDCs, both with a competitive FX conversion layer, which may have the highest potential to deliver the holy grail for larger cross border payment corridors.”

Furthermore, the central bank questions whether financial authorities should develop both the interlinking of domestic payment systems and CBDCs, or dismiss one of them and focus all efforts to implement the holy grail as soon as possible.

The European Central Bank has been working on a project to issue a digital version of the common European currency, the Euro. Its investigation phase may take another year or so, President Christine Lagarde indicated last month.

In an article co-authored with Board Member Fabio Panetta, she also marked key principles of the CBDC’s realization. Then, a group of economists suggested that limiting users’ access to the upcoming currency is necessary to preserve the current banking system.

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Business

Cape Town to host the 8th Africa Fintech Summit

Leading innovators, investors, and policymakers will convene in Cape Town, South Africa, in November 2022 for the 8th edition of the Africa Fintech Summit (AFTS). The summit will be held at the Cape Town International Convention Center (CTICC) from 03 to 04 November 2022. 

With participants who represent over $4.5bn in private equity and venture capital funding, the AFTS is one of the significant global initiatives committed to financial technology in Africa

The bi-annual summit occurs each April in Washington, D.C, and each November in a different African city. 

In recognition of South Africa’s position as one of the Top 4 African Fintech ecosystem hubs, the AFTS Advisory Board unanimously decided to host the event in Cape Town this year. 

Zekarias Amsalu, co-founder of AFTS said, “We are very pleased to bring AFTS to South Africa, a world leader in Banking & telecom services and one of the top African countries with the most advanced technological ecosystem hubs and sophisticated tech talent. We look forward to welcoming our global delegates and ecosystem players to Cape Town this November and so collaborative partnerships and initiatives are made towards Africanization of global tech.”

Additionally, Cape Town is ranked as one of the Top 3 Startup Cities in Africa, and the country has well-developed infrastructures with effective financial, legal, energy, telecommunication, and transport systems, as well as a stock exchange that is Africa’s largest and among the Top 20 in the world.

H.E. Nomaindiya Mfeketo, South Africa’s Ambassador to the US, conveyed her elation saying, “I am very much pleased to welcome Africa Fintech Summit’s delegates to South Africa this year. We are committed to inculcating the spirit of Ubuntu and the “Batho Pele” (People First) principles, which is reflective of our country’s values of putting humanity central to all that we do.”

She added, “The Africa Fintech Summit, having financial inclusion at its core and enabling the underserved and underbanked population to enjoy affordable and convenient financial services via innovative technological services, is a very welcome initiative. I would like to welcome the global delegates of AFTS to beautiful South Africa and enjoy delightful conference tourism!”

Welcoming AFTS delegates to Cape Town, Wrenelle Stander, CEO of Wesgro said, “We are delighted that the Mother City has been selected to host the upcoming Africa Fintech Summit.”

“With our state-of-the-art conference facilities and strong financial industry underpinned by our vibrant tech ecosystem, Cape Town is Africa’s Tech Capital and well positioned to contribute to the success of the event. We look forward to supporting the summit and welcoming the delegates for a great South African experience,” she added.

The 7th edition of the AFTS was hosted in Washington, D.C. in April this year. The event hosted 289 people at the physical destination and 200 virtual delegates including Government representatives, entrepreneurs, Fintech Founders, Investors, DFIs, bank executives, policymakers, and corporate influencers from over 35 countries.

The African Fintech Summit (AFTS) being held in Cape Town will be largely centered on policy and regulation, tech talent, the future of banking, mobile money growth and integration, embedded fintech, blockchain, powering African fintech via venture capital, debt financing, and CVC investing, remittances, intra-Africa trade and payment infrastructure, and financial inclusion, among other topics.

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Business

Ekolance partners with TechonomyAfrica to drive Web3 and Blockchain in developing nations

Ekolance, a blockchain learning and freelancing platform, and Edtech platform, TechonomyAfrica have collaborated to significantly boost the people’s participation in blockchain and Web3, particularly in developing nations.

According to the recently signed Memorandum of Understanding (MOU) between the companies, the partnership is launching a specialized program for individuals in blockchain from developing nations by this year. 

The partnership will focus on fostering the next generation of leaders in the Web3 and blockchain industries. It also aims at improving the quality of people’s lives by placing as many of their talents as they can in remote jobs with Web3 companies from the developed world.

Since the tech and blockchain ecosystems are largely male-dominated, the idea is to encourage more women from emerging economies to pursue careers in tech, partly to increase versatility, inclusion, and diversity in the industry but also to address the labor shortage in the sector. 

The program launched is providing free training for specific professional streams, especially the roles that are in great demand, such as solidity development, community management, and content creation. 

Commenting on the partnership, Linda Obi, Founder of TechonomyAfrica, highlighted that the demand for blockchain developers is rising with the normalization of cryptocurrency and that innovative technology like Web3 has not yet fully been embraced in developing countries therefore they’re working towards changing that pattern.

She added, “We can reverse the trend of women in tech and build a more supportive ecosystem from early childhood up through formal education and far into someone’s career. We are dedicated to positioning women and others from emerging economies to helm this new tech wave, causing a ripple effect of new wealth generation among their families and communities.”

Modupe Ativie, co-founder of Ekolance also emphasized, “Our focus is not just educational inclusion but building and nurturing communities of competent Web3 professionals for every job. We will achieve this by providing hands-on training from global blockchain experts and direct access to jobs. Our goal is to gradually close the demand gap for blockchain professionals with talent from developing communities.” 

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Opinions

Central Bank Deputy Governor Criticised for Spreading Misinformation That Harms the Crypto Industry

Steven Boykey Sidley, an author and a professor at a South African university, has criticized Kuben Naidoo, the country’s central bank deputy governor for claiming that 90% of cryptocurrency transactions are illegal.

Sidley called Naidoo’s allegations “balderdash,” insisting that the actual statistics are constantly compiled and presented by several data analytics organizations and indicate that just a small percentage of cryptocurrency transactions are associated with illegal activity.

In his opinion piece published by the Daily Maverick, Sidley accuses the South African Reserve Bank (SARB) deputy governor of spreading misinformation that ends up in news headlines and does immeasurable damage to an important new industry. 

Sidley cites data from Chainalysis, which indicates that about 0.15 percent of cryptocurrency transactions are thought to be connected to illegal behavior, as evidence for this theory. This number, according to Sidley, who is also a co-author of the book “Beyond Bitcoin: Decentralised Finance and the End of Banks,” is far smaller than the amount involved in illegal fiat currency transactions.

In the opinion piece he explains, “Furthermore, the number of transactions tied to illicit transactions in the real world of rands and dollars, where we live, is 5%. That’s 50 times higher than crypto, and those are the only ones we know about.”

The professor added, “Why is this? Because the blockchain’s transactions are public. It is impossible to commit a silent crime. It is instantly visible and tracking the proceeds of crypto crime is simple for anyone. The deputy governor had been woefully misinformed on this matter, and he should have been more cautious.”

Sidley also commented on the South African Reserve Bank’s plans to control cryptocurrencies as financial assets. 

As previously reported, the SARB expects to have a crypto regulatory framework in place by the end of 2023. 

According to Sidley, such a regulatory framework removes the uncertainty that currently afflicts the entire industry and allows institutions like banks to get into this asset and service space.

He also argues that while such a regulatory framework is expected to create some level of certainty, it will expose an even bigger problem that awaits the industry. Also, the regulation of cryptocurrency with laws passed more than a century ago.

He said:

“What the Sarb (and every other regulator) is trying to do is to shoehorn crypto into existing regulations designed many decades ago for assets that are hundreds of years old — stocks, currencies, commodities, collectibles, and the like. It is not going to work.”

Sidley also insisted that these entirely new asset classes need to be defined properly before the whole field can be rationally regulated.

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Business

River Financial launches zero-fee recurring Bitcoin orders

River Financial, a leading Bitcoin technology, and financial services company, has launched zero-fee recurring Bitcoin orders, making it seamless to dollar-cost average into Bitcoin (BTC). Dollar-cost averaging is an effective way to accumulate Bitcoin over the long term as it lowers exposure to price volatility.

River Financial clients will pay no trading fees on recurring orders starting one week after a recurring order is placed.  This means that with zero-fee recurring orders, the company’s clients can now take advantage of low Bitcoin prices and accumulate more Bitcoin than ever before.

The company’s press release stated, “With zero-fee recurring orders, River’s clients can take advantage of low bitcoin prices and accumulate more bitcoin than ever before,” 

Alex Leishman, River Financial CEO also said,

“The best time to start buying bitcoin was when you first heard about it. The second best time is now.” 

“River is the most trusted brand in Bitcoin. We believe in security, transparency, and service. Our goal is to help our clients build long-term wealth through Bitcoin,” he added.

River Financial is on a mission to build high-quality financial products based on Bitcoin. Along with zero-fee recurring orders, River makes it easy to trade, store, and mine Bitcoin in the United States. Clients have access to white-glove service and support, in addition to full management of assets through river.com and the River iOS app. 

Additionally, the fintech provider is a strong proponent of dollar cost averaging. The idea of this strategy hinges on the fact that timing the market is difficult, but if an investor sets up recurring purchases, they are likely to average out to a good position over a long period of time by lessening exposure to price volatility.

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Blockchain

How to Launch a DAO

The term DAO (short for “Decentralized Autonomous Organization”) became a crypto buzzword in 2021, but the concept has steadily become a real value. According to the analytics platform DeepDAO, the DAO ecosystem has a total treasury value of $ 11.6billion as of this writing.

The first DAO, called “The DAO,” launched on Ethereum in 2016. While it is possible to establish a DAO on any blockchain that supports smart contracts, most of them run on Ethereum.

DAOs are still expanding as a method for fast generating and allocating funds for charitable causes and decentralizing blockchain-based protocols. They are an effective and safe way to work with like-minded folks around the globe in the blockchain and Web3 industry. Think of them as an internet-native business that’s collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group.

Here are the basics of launching a DAO and the tools needed while creating it.

Forming a DAO requires the following steps:

1. Creating a name for the DAO

Every DAO needs to create a name that encapsulates its mission. For example in the wake of Russia’s invasion, crypto users created a DAO named the Ukraine DAO. This was created to raise money in support of the nation.

2. Create a mission statement

As stated above, the mission statement must align with the name given to the DAO. This emphasizes the purpose and focus for the community established. For example, a new Decentralized Autonomous Organization named the ConstitutionDAO is dedicated to preserving the U.S. Constitution. It plans to do this by pooling capital using an Ethereum smart contract to purchase a first-edition printed copy of the historic document.

3. Build a community 

The platform created is for member engagement, community building, and announcement. Some DAOs are created on Twitter because of its global presence which means having a broader audience. Others prefer discord because of its ability to organize thousands of people into different roles and working groups. There are other platforms for example Medium and Telegram among others.

4. Invite people to join the community

5. Launch a governance token

Once you have a clear understanding of what you hope to accomplish with your DAO and the type of DAO you want to build, you’ll next want to think strategically about your DAO token allocation, specific to your relationship with your community and long-term vision. 

Getting this right from the start will help you fundraise effectively, and increase buy-in from your initial supporters and community. DAO tokens can be used for rewards and incentives, DAO governance, and voting on the direction of the DAO, unlocking other benefits and opportunities for the community.

Additionally, DAO tokens allow users to be truly invested in the success of your company and be active participants in the DAO’s growth.

6. Create a funding mechanism

This comes after finalizing the initial coin supply and allocation for your DAO token. It is also important to securely manage the funds within your DAO structure through the DAO treasury. Some of the treasury management tools include Gnosis Safe, Syndicate Web3 Investment Clubs, and Juicebox which is a fundraising tool, among others.

7. Set up Snapshot or other tools for governance, voting, and logging member contributions.

Governance is the process of having members and token holders directly participate in making decisions. To effectively steward a decentralized organization, DAOs must have a trustworthy and accessible method for their token holders to vote on key issues including how treasury funds are distributed, spent, and allocated.

Proposing improvements, debating decisions, and voting on important topics are core to DAO operations. Having the platforms in a place where members can connect their wallets, propose, review, and vote on key issues treasury and protocol decisions is essential tooling for DAOs.

In conclusion, Web3 innovations like Decentralized Autonomous Organizations open up many exciting possibilities for startups, creators, and online communities.

When starting a DAO, keep the steps stated above in mind, explore different DAO tools, and always focus on your number one asset which is the community.

With the right tooling, tokenomics, and team, your DAO has every chance for success.