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Opinions

The impact of legalizing crypto in Uganda

Since the inception of Bitcoin in 2009, the economic impact of cryptocurrency has been both overt and subtle. Now in its thirteenth year of existence, the digital or virtual money that takes the form of tokens or coins has established itself as a viable currency and form of investment and the economic impact of cryptocurrency is evident in a number of areas in national and global communities. 

Although the African continent receives only 2 percent of the global value of all cryptocurrencies, their rapid growth will transform financing in an increasingly digital and urban sub-Saharan Africa. In fact, a recent report by Chainalysis, found that between July 2020 and June 2021, Africans received $105.6 billion worth of cryptocurrency payments, an increase of 1200% from the year before.

Because cryptocurrency platforms bypass traditional banking services by introducing decentralized peer-to-peer lending and payment services, they can help level the economic playing field and expand finance options to underserved customer markets. While some African countries such as the Central African Republic have legalized Bitcoin, others such as Uganda haven’t warmed up to the idea yet.

Yesterday, NBS Television hosted a Twitter spaces chat to engage industry experts in a discussion about how legalizing crypto will affect Uganda’s financial landscape. 

Namajja Irene, Barry Ainomugisha, Esther Aikiriza Kagira and Brindon Bamwiine were some of the speakers that participated in the conversation.

According to Barry Ainomugisha, the Legal Counsel for the Blockchain Association of Uganda and the Co-founder of Skill Haven Africa, legalizing crypto in Uganda will have a positive impact on our economy.

He said, “If cryptocurrency is not legalized, its potential as an innovative and creative venture in terms of growth in technology is hindered.”

“Legalizing cryptocurrency will have a great financial impact on the Ugandan market. If we are going to effectively exploit all the potential of cryptocurrency and blockchain technology, we must make room for them in the regulatory framework,” he added.

However, from the authorities point of view, there is alot to be skeptical about since these digital assets can not easily be regulated. Commenting on this, Esther Kagira, the Manager Strategic Analysis and Communications at the Financial Intelligence Authority of Uganda said, 

“The fact that it is a new technology, it cannot easily be regulated and that is why we consider it a risky thing to deal with. I believe that the Government is still researching more on the crypto idea in order to release proper policies to regulate it.”

However Sydney Asubo, The Executive Director at the Financial Intelligence Authority of Uganda added, 

“Regulation of cryptocurrency is not meant to stifle innovation but to enhance compliance. Regulation will aid the industry by providing some form of protection to the public.” 

According to The Law Of Cryptocurrency and Cryptography in Uganda, a book that was written by Isaac Lubogo Christopher that examines the impact of cryptocurrency in Uganda, it is noted that policy makers should be careful to distinguish between risks and challenges. Some risks are genuine, but other concerns are just about the disruptive nature of the cryptocurrencies.

Additionally, central banks are designed to supervise  and monitor the operation of financial institutions in Uganda. The bitcoin system, although lacking a centralized system of governance, has an effect on the economy and financial operations thereunder which puts it under their control. The central bank may be currently skeptical about the rise of cryptocurrencies as well as new financial innovations but this is important to enable it fulfill its obligation to protect the interest of the depositors.

With the recent statement that was released by the Bank of Uganda (BoU) in April, Uganda does not recognize crypto as legal tender although it is reportedly moving to update its Anti-Money Laundering Act to include providers of virtual assets such as crypto as persons who can be liable for money laundering.

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Social Good

The Nelson Mandela Foundation Launches NFTs In Honor of Mandela Day

The Nelson Mandela Foundation is introducing a series of NFTs in honor of Mandela Day which is celebrated on 18th July. The team behind the project chose July 18th because of its significance in relation to the icon. The initiative honors the life and legacy of the former South African president and was developed in close collaboration with the Auckland-based Glorious Digital.

Although there isn’t an official release date just yet, this long-term project will look at the impact Nelson Mandela has had on South Africa and globally. Significantly, the funds from the project will grow the reach of the Nelson Mandela Foundation.

Nelson Mandela, commonly referred to as Madiba, is a former president of South Africa, an icon of democracy, and a Nobel Peace Prize winner.

However, his life was difficult having lived through the brutal and horrific apartheid system in South Africa. In trying to end the apartheid system in South Africa, Mandela served 27 years in prison between 1962 and 1990 on Robben Island. 

Apartheid started to dissolve in 1990 due to mounting international pressure and the threat of massive civil unrest.  This was when Nelson Mandela and other key civil rights activists were finally freed.

In 1994, Mandela ran for president in South Africa’s first-ever free and fair general elections. Previously, voting had been a right of white South Africans only. He eventually won the elections four years after the cruel system of Apartheid ended becoming South Africa’s first black president.  

The Nelson Mandela NFTs will focus on such aspects of his life. 

Because of the partnership with the Nelson Mandela Foundation, Glorious Digital will have access to personal papers, photographs, and more of the icon’s personal artifacts. In fact, the project is predicted to last ten years. 

“To be entrusted with Mandela’s archive, legacy, and messages of togetherness, optimism, leadership, equality, freedom, and hope amongst others is an honor and a privilege,” said Tim Harper, Glorious Digital’s Chief Executive.

The purpose of the NFTs is to explore the full history of Nelson Mandela and the impact of his life on society.

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Business

Italy welcomes Crypto.com exchange after Binance And Coinbase

After exploring every nook and cranny in Asia, crypto entrepreneurs now appear to be focusing on Africa, the Middle East, and Europe. Italy has recently announced that Crypto.com can now legally operate in the country. 

In a recent press release, the exchange announced that it had acquired the regulatory approval of Organismo Agenti e Mediatori [OAM].

With this development, the exchange will be allowed to offer an array of products and services to its Italian customers. Speaking about this, the co-founder and CEO of Crypto.com, Kris Marszalek further said,

“We are excited to receive this registration in Italy and view it as a major step forward for Crypto.com. We are committed to building lasting growth in the region and will continue working with regulators to deliver a wide range of products and services to our valued customers.”

OAM recently mandated that cryptocurrency businesses obtain regulatory approval in order to operate in the nation. Coinbase recently received approval to offer its services to Italian customers. A month ago, Binance bought a license.

It is important to note that Crypto.com has already marked its presence in Italy. The exchange and Lega Serie A teamed together to administer the Coppa Italia, a prestigious yearly football club competition, back in 2021.

Furthermore, similar to its counterparts, Crypto.com seemed to be eyeing a Euro expansion. The firm had recently registered itself in Greece after the Hellenic Capital Market Commission gave it the green light.

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Business

Tokens.com Buys Playte Group To Expand Its P2E Gaming In Africa

Recently, Playte Group, a company that creates technologies to support the play-to-earn (P2E) economy, was successfully acquired by Token.com which is a publicly traded corporation that invests in digital assets such as NFTs and the Metaverse. The company announced the acquisition of Playte Group to expand its gaming functionalities to Africa.

Token.com will integrate Playte into its subsidiary, Hulk Labs, to manage a gaming network in Africa. In consideration of the acquisition, Token.com will issue one million shares.

Commenting about the crypto development, Andrew Kiguel, the CEO of Token.com, said:

“Hulk Labs is tying together the key pieces to create an integrated play-to-earn gaming platform. The massive video game market is shifting to play-to-earn games. Hulk Labs is establishing itself as a technology leader in player management and analyzing gaming profitability. Hulk Labs currently provides the top gaming calculators for free on its website for players to view. The Playte acquisition is a perfect fit with our exclusive access to video game players in the DRC.”

In a press statement released, Deven Soni, COO of Tokens.com also expressed, 

“We expect an explosion of interest in the play-to-earn economy from investors and gamers. We are excited to work with the team from Playte to help build tools and infrastructure to grow this ecosystem.”

The recently acquired company has five workers and is an Ontario-based pre-revenue organization. Its goal is to develop a platform for the blockchain play-to-earn ecosystem that automates the management of P2E players and assets.

Furthermore, Playte is developing tools to manage users and resources for games on networks like Ethereum, Solana, and Avalanche. Axie Infinity, Crabada, and Thetan Arena are just a few of the games for which Playte is currently developing tools. The Playte team is also working to establish a network of more than 1,000 players in Africa.

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Business

“Hack the Mara” Competition Launched To Tackle Last Mile Payment Challenges

The Pan-African blockchain platform Mara has announced the launch of the “Hack The Mara” competition, which will run from September 17 to September 26, 2022. The competition is an initiative in line with Mara’s commitment to inspire developers to build the future of Africa on Web3.

The Mara Hackathon aims to inspire participants to develop decentralized applications that offer long-term solutions for tackling last-mile payments. The solutions prototyped during the hackathon are expected to strengthen the financial sustainability of ongoing conservation projects in the Mara for better livelihoods.

The competition will take place in five stages, starting online, with the final stage completed in person in Kenya.  The top 8 teams will be invited for a physical hack in the Mara where they will be hosted at Ishara, located in the heart of the Masai Mara National Reserve in Kenya.

“Deployment of these smart technologies is going to be transformative and impactful in many diverse respects, from uplifting and empowering communities to the preservation and conservation of our wildlife and nature. Together with Mara, we are excited to pioneer these efforts. We look forward to welcoming brilliant creators to our camp and enabling them to experience the magic of Ishara and Mara,” said Azhar Madhani, Co-Founder of Ishara.

Kate Kallot, Co-Founder and Chief Impact Officer at Mara highlighted the importance of the competition saying, “Blockchain for social impact is at the heart of everything we do at Mara. Through our non-profit foundation, our aim is to empower problem-solvers to build blockchain solutions which promote long term beneficial, social and environmental change in Africa.”

“Blockchain has the potential to take financial services and last mile payment solutions to new heights. With a direct focus on solving real local challenges, these innovators may create globally relevant solutions and drive the future of finance.” added Chi Nnadi, co-founder and CEO at Mara.

Circle, the issuer of USD Coin (USDC) and Euro Coin and also a partner of the competition emphasized that this will challenge developers to use blockchain via USSD and M-Pesa for payment transparency. 

Sandra Persing, VP of Developer Relations, Ecosystem Relations and Ecosystem Marketing at Circle said, “Developers are core to what we do at Circle. We hope to see more technical breakthroughs that make financial services more inclusive, efficient and scalable. We are excited to give African innovators an opportunity to build solutions that may change the world and certainly the world of finance.”  

The winning solution will get the chance to enroll in the Antler Nairobi program, where they will continue to develop their idea into a company and possibly secure funding. Antler is a global early-stage VC and start-up builder.

A panel of judges will evaluate the contestants on their originality, inventiveness, analytical prowess, strategic thinking, and practical application. The top ideas will also be given possibilities for follow-on funding by Mara Foundation and/or its partners, as well as awards and prizes totaling up to $100,000.

The deadline for registering for the “Hack The Mara” competition is August 5th. Interested innovators and developers from all over the continent are encouraged to register via https://marafoundation.org/hackathons

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Opinions

Africa can create an inclusive society with robust economies using blockchain, says LBank CEO

Blockchain advocates continue to focus on Africa as a key market because of the potential influence that the adoption there may have on the overall crypto industry. It presents an opportunity for societies to solve economic problems and many other challenges.

Allen Wei, CEO of the cryptocurrency exchange LBank, recently emphasized that blockchain technology might have a big impact in Africa in his interview with Cointelegraph. He further highlighted the potential impact of regional acceptance on cryptocurrency and the significance of aiding initiatives across the continent.

The executive also stressed that the technology could create an inclusive society on the continent. 

He said, “With the help of blockchain, Africa can create an inclusive society with a robust economy and the highest standards of living. A larger economic system might be built where more people will be employed and have access to greater wealth than ever before.”

Wei believes that acceptance in Africa would make it simpler for other regions to accept cryptocurrency given the increase in the number of people who are using crypto and blockchain in the continent. He was also quoted saying:

“With so many individuals utilizing cryptocurrencies, it will be simpler for other countries to accept them as well, which will result in a favorable turnaround in the crypto economy.”

Furthermore, Wei also expressed that helping the region means the crypto space will have a wider reach.

“If we can help Africa become one of the most crypto-friendly continents on the planet, then we will be able to reach a larger audience than ever before,” he said.

However, Wei noted that crypto and blockchain projects in Africa often face challenges in terms of funding despite the region’s potential. The LBank executive therefore emphasizes the importance of funding the growth of African blockchain projects. 

According to Wei, this is one of the reasons LBank’s venture capital arm launched an accelerator program to help local projects on the African continent. He believes the program can help create more jobs and increase revenue in the region.

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Business

Nigeria’s Scorefam Secures a $25 Million Capital Commitment

Global Emerging Markets (“GEM”) digital limited, a Bahamas-based investment firm, has committed to an investing of $25 million towards Nigeria’s Scorefam, a decentralized sports betting platform. This financial commitment will enable Scorefam to grow its user base, create new cutting-edge features, and continue to hire highly skilled personnel.

Scorefam’s COO and Co-founder, Sofowora Babasola, stated,

“This collaboration marks a critical turning point in the company’s future growth. By providing financial benefits to sports fans all around the world, the money will allow us to realize our vision of bringing together the crypto and sports gaming businesses. We honestly can’t wait for everyone to participate in what happens next.”

The company also hopes that the funds will give people the financial independence they need to achieve their strategic development goals. These goals include commencing work on the Scorefam NFT and NFT marketplace, introducing two new anticipated features, namely Flexible and Multiflex Gaming, as well as continuing to enhance our current flagship feature, Locked Gaming. With the commitment of money, Scorefam also aims to continue hiring exceptional people from all across the world.

Additionally, the sports gaming platform aims to establish a platform for the global acceptance of cryptocurrencies. 

“We think that by making it possible to profit passively from the world’s favorite hobby, the advancements the money will enable will prove to be incredibly profitable and advantageous for crypto newcomers,” Simisoluwa Adeyemo, CEO and founder said.

“Our organization’s cornerstones are a relentless mind, unshakeable resolve, and a results-driven strategy. Because of this, I am happy to have accomplished this feat with our outstanding team and a prestigious organization like GEM. This money is the first step toward achieving our objectives, exceeding them, and coming up with fresh, innovative ideas along the way. With a team like ours backed like GEM, we’re certain to meet every obstacle head-on and come out victorious,” he added.

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Business

Over 1 million Borrowers Getting DeFi Loans From GoldFinch DeFi Pools

GoldFinch, a lending protocol for cryptocurrency loans, has reached more than 1 million users. This is the second significant achievement after the business announced in April this year that its active loans had gone over more than $100 million globally.

Blake West, Warbler Labs CTO, and GoldFinch Co-Founder conveyed his merriment saying,

“Crypto feels so potentially transformative, that to not have it go out into the real world feels like a real disappointment compared to what’s possible. I’m proud of the GoldFinch community that the network is showing it’s possible to access DeFi’s yields while also actually expanding financial inclusion.”

GoldFinch is a globally accessible credit protocol with a mission to leverage DeFi to increase access to credit, both for people who need capital as well as making it easy for regular people to contribute capital and stand to earn. The lending protocol was launched on Ethereum in February 2021 and is supported by a16z, Coinbase Ventures, Variant, and others.

The protocol gives cryptocurrency loans without the need for cryptocurrency collateral, which sets them apart. Additionally, this is an idea they seem to be scaling successfully.

The countries with the most active loans are the USA, Kenya, Mexico, Nigeria, India, and Ghana.

GoldFinch has expanded its pools to  Kenya through Tugende, a Ugandan credit and asset finance company that offers loans to Kenyans so they can buy motorcycles for their businesses.

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Business

Snapchat adding NFTs as AR filters

Although the cryptocurrency market may be in its deepest midwinter, mainstream tech corporations are nonetheless making headway into the market in case it starts to pick up steam again. In the latest development, Snapchat is exploring ways of letting users show off their digital collectibles as AR filters.

The company is set to start this experiment with a limited set of creators in August. In this test, users will be able to create and mint NFTs on another platform and then import them into Snapchat as Lenses. 

Social media platforms have used several strategies for NFTs, utilizing the unique dynamics of each platform. One of the first companies to get on the NFT bandwagon was Twitter, which gave its paying users the option to utilize digital items as their avatars.

In May, Instagram said it would allow a limited set of creators to show off NFTs in their Feeds, Stories, and Messages. Facebook also started testing a similar set of features for a limited number of users in the U.S last month. Additionally, Reddit launched its own NFT marketplace where you can buy digital avatars for a fixed price through fiat currency last week.

According to Financial Times, Snapchat doesn’t plan to take any money from creators that plan to show off their digital collectibles like Twitter, Instagram, and Facebook. Rather, it is thinking about ways those artists can monetize their work.

Snap’s closest rival in the NFT space would be Meta, given the company has already said it wants to bring them into the “real world” using its own SparkAR technology. Furthermore, Meta’s Head of Fintech, Stephane Kasriel said in an interview that the firm aims to create a marketplace for digital collectibles that could be used in the metaverse.

The NFT test seems to be part of a mini product sprint via Snapchat and it’s coming just days after Snapchat launched its premium subscription Snapchat Plus.

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Business

Bitcoin Approved As A Reserve Asset in the Central African Republic

After launching the Sango coin to complement the country’s recent move to adopt Bitcoin (BTC) as legal tender, The Central African Republic (CAR) has planned to leverage Bitcoin as a reserve asset. This is part of the country’s efforts to embrace cryptocurrencies and blockchain technology as tools to bolster the debilitated economy.

According to data from the trading view, Bitcoin currently trades above $21,000. 

CAR’s decision to deploy crypto’s top coin as part of its national reserves comes from a policy geared towards legalizing BTC in the country.

The idea of legalizing BTC was devised by two politicians, Minister of Digital Economy, Gourna Zacko, and Minister of Finance, Calixte Nganongo, and received support from the national legislature. The bill received a unanimous vote in the Senate and received the endorsement of officials.

The CAR has recently introduced the Sango project, a blockchain-based platform that supports the country’s adoption of cryptocurrencies. According to reports, Sango is a Liquid Network-inspired Bitcoin sidechain.

It is important to note that the nation became the first country in Africa to approve Bitcoin as legal tender back in April.