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Technology

Africa Leads Global Blockchain Adoption with a Staggering 1200% Growth in Crypto Market: Emurgo Report

Emurgo Africa, the Cardano blockchain-backed entity, has unveiled a groundbreaking report showcasing the remarkable state of Web3 and blockchain technology across the African continent. The report’s key revelation is nothing short of astonishing: blockchain funding in Africa skyrocketed by an unprecedented 1,668% between 2021 and 2022, underscoring Africa’s position as the world’s fastest adopter of blockchain technology.

Emurgo Africa’s latest report underscores the widespread belief among stakeholders that blockchain technology offers a multitude of opportunities for Africa. This revolutionary technology, characterized by its transparency and decentralization, is proving instrumental in addressing challenges such as international remittance, financial inclusion, and land registration, among others.

The report, titled “The State of Web 3.0 in Africa: Kenya, Nigeria, and South Africa,” delves into the blockchain landscape in these three pivotal markets. These countries were chosen due to their significant uptake of Web3 technologies and the ongoing dialogues among stakeholders concerning policy development and digital currency regulation.

The African crypto market experienced an extraordinary growth rate of over 1200% between 2020 and 2021, propelling Kenya, Nigeria, South Africa, and Tanzania into the global top 20 for crypto adoption. This phenomenal growth cements Africa’s status as the world’s fastest adopter of blockchain technology, according to the report. Remarkably, funding for African blockchain startups surged by an astounding 1,668% between 2021 and 2022, soaring from $5.165 million in 2021 to a staggering $91 million in 2022. Notably, venture funding growth outpaced general funding growth by an impressive factor of 11 during this period.

However, the report also highlights the pressing issue of regulation. As digital assets gain popularity across the continent, there is an urgent need for a meeting point between stakeholders and regulators. Approximately 20% of Sub-Saharan African countries have banned crypto-assets, while others like Nigeria, South Africa, and Kenya are grappling with regulatory ambiguity. For instance, in Nigeria, the Central Bank of Nigeria’s ban on crypto transactions in the banking system, implemented in February 2021, remains in effect. Meanwhile, efforts are underway to develop an adoption framework for blockchain technology, emphasizing the need for collaboration between regulatory bodies and influential blockchain organizations like the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN).

In summary, while blockchain and crypto assets are still emerging technologies, the need for robust regulatory frameworks has never been more crucial. As Africa marches toward mainstream adoption, potential applications abound, including SME financing, supply chain management, smart contracts for informal labor markets, governance, digitizing trade infrastructure, title deed registration, verification of education credentials, and mobility solutions. The future of blockchain technology in Africa is undeniably bright, marked by unprecedented growth and transformative potential.

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Business

CBN Clarifies: eNaira Poses No Threat to Nigeria’s Financial Stability

The Central Bank of Nigeria (CBN) has responded to concerns raised by media outlets about the potential impact of the eNaira on the country’s financial stability. In an official statement, the CBN clarified that its eNaira project, despite being one of the pioneering central bank digital currencies globally, does not pose any threat to Nigeria’s financial stability.

The controversy stemmed from references to the CBN’s publication, “Economics of Digital Currencies: A Book of Readings,” which delves into the implications of central bank digital currencies on the economy. The report highlighted the gradual increase in eNaira adoption, currently accounting for a 0.2% share compared to the liquidity of Nigerian banks. Notably, funds held in eNaira wallets are not accessible to commercial banks, raising theoretical concerns about potential liquidity challenges if the naira were fully embraced.

However, the CBN emphasized that these concerns are part of the broader theoretical discussion around any Central Bank Digital Currency (CBDC). The official statement chose not to elaborate extensively but straightforwardly denied the media’s allegations. Instead, the CBN pointed to the comprehensive insights about Central Bank Digital Currencies (CBDCs) outlined in its report.

“The entire structure continues to evolve and undergo modifications aimed at enhancing the user experience across all interfaces. We encourage Nigerians to embrace the technology for, among other things, greater financial inclusion,” the CBN stated.

It’s worth noting that a survey conducted across 15 countries indicated that Nigeria’s population is exceptionally crypto-aware. According to a joint study by ConsenSys and YouGov, 99% of Nigerian respondents demonstrated a higher familiarity with Web3 compared to major economies like the UK, the US, Japan, and Germany. Despite concerns, the eNaira project is part of Nigeria’s evolving financial landscape, reflecting the country’s growing interest in innovative digital technologies.

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Business

XRP Healthcare Revolutionizes African Healthcare Through Coinstore Collaboration

XRP Healthcare is embarking on an ambitious expansion initiative in Africa through a strategic partnership with Coinstore, a reputable cryptocurrency exchange platform. As part of this collaboration, XRP Healthcare’s native token (XRPH) will be listed on Coinstore, granting users convenient access to XRP Healthcare’s wide array of products and services. What sets XRP Healthcare apart is its swift payment system, powered by the efficient XRP Ledger, ensuring seamless and rapid transactions for users.

The significance of this listing extends beyond mere accessibility; it serves as a gateway for XRP Healthcare to reach a larger and more diverse audience, including potential investors keen on embracing cryptocurrencies for their social impact and transformative potential. This move aligns perfectly with XRP Healthcare’s overarching vision – establishing a data-centric network facilitating decentralized data acquisition and processing. Through this network, various decentralized applications (DApps) and use cases become feasible, opening doors to innovative solutions.

Crucial to XRP Healthcare’s expansion strategy in Africa is its strategic alliance with Ripple Labs, the driving force behind the XRP Ledger and the XRP token. Ripple Labs, a prominent entity in the region, is actively promoting fast-transacting cryptocurrencies and liquidity solutions. Leveraging Ripple Labs’ cutting-edge technology and extensive network, XRP Healthcare ensures efficient and secure transactions for its users and partners, enhancing the overall user experience.

Anticipated ripple effects of XRP Healthcare’s expansion strategy are poised to benefit not only the healthcare sector but also the broader cryptocurrency industry. By joining forces with Coinstore, XRP Healthcare aims to augment its value and utility, attracting a larger user base and garnering increased support for its ecosystem. 

XRP Healthcare stands as a pioneering Web3 Healthcare company, dedicated to revolutionizing the healthcare landscape in Africa and beyond. Its approach hinges on harnessing the power of blockchain technology and cryptocurrency to address the challenges plaguing the fragmented healthcare industry in the region. Key objectives include enhancing patient outcomes, improving accessibility to quality healthcare, and ultimately establishing a sustainable premier healthcare network. To achieve these goals, XRP Healthcare plans to acquire and merge between 1,500 and 2,000 already profitable private healthcare facilities across Africa, marking a significant step toward creating a transformative and enduring impact on healthcare delivery.

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Business

Africa’s Crypto Resilience Amidst Global Turbulence

The cryptocurrency market, once booming with record-breaking prices in 2021, has since witnessed a significant downturn. Bitcoin, the leading digital currency, has plummeted by nearly 60% from its peak, and Ethereum has seen a decline of almost 65% from its all-time high. Moreover, high-profile arrests of crypto executives worldwide, notably the ongoing court case of FTX mogul Sam Bankman-Fried, have cast a shadow over the industry. Despite these challenges, Africa tells a different story. 

In contrast to the prevailing gloom, research by global crypto consultancy firm Chainalysis indicates that Africa has shown resilience in adopting digital assets, even amidst market volatility. According to their findings, Nigeria ranks as the world’s second-largest market for digital assets in terms of grassroots adoption. Other African countries like Kenya, Ghana, and South Africa have also embraced cryptocurrencies, showcasing high levels of uptake.

So, what drives crypto’s appeal in Africa despite market fluctuations and sharp depreciations? Oluwatobi Ajayi, co-founder and CEO of Ivorypay, a crypto payments firm in Lagos, emphasizes the distinctive role cryptocurrencies play in Africa. According to Ajayi, digital currencies offer solutions to prevalent financial challenges, such as high transaction fees for cross-border payments, limited access to traditional banking, and the need to preserve wealth amidst fluctuating national currencies.

Unlike in other regions, cryptocurrencies in Africa provide a quick and cost-effective way for consumers to transfer funds across borders. They are seen as an attractive alternative to national currencies like the Nigerian naira or Kenyan shilling, which have lost value due to depreciation. Daniel Arok, the national representative for South Sudan on the Africa Blockchain Council, adds that cryptocurrencies are widely used in cross-border transactions and as a store of value. Small-scale businesses also utilize crypto for trade finance, making payments to suppliers through peer-to-peer (P2P) transactions.

However, Africa’s crypto journey is not without challenges. The international prominence of crypto-related scandals, including the FTX collapse, has heightened skepticism in the region. Despite this, educational outreach programs and grassroots initiatives focused on crypto and blockchain are helping dispel misconceptions and build trust among consumers.

Interestingly, Africa has witnessed a shift towards stablecoins, digital assets designed to maintain a peg with traditional currencies like the US dollar. These stablecoins are perceived as a hedge against currency depreciation and inflation. They offer a stable store of value and a medium of exchange for individuals and businesses. Ajayi explains that in countries with limited foreign reserves and a scarcity of US dollars like Nigeria, stablecoins become particularly attractive for international transactions.

The growing adoption of digital assets in Africa is prompting regulators to consider how to manage this emerging industry effectively. Stricter regulations are on the horizon, with governments recognizing the potential disruptions to traditional financial systems. David Otieno, lead blockchain researcher at Chaintum Research in Nairobi, suggests that meaningful conversations and collaborations between lawmakers and blockchain stakeholders are necessary. Such dialogue can lead to legislation that supports the local crypto industry’s development while ensuring consumer protection.

Despite the challenges and uncertainties, the adoption trend of cryptocurrencies in Africa remains robust. As Ajayi aptly puts it, this trend persists because the traditional financial system is far from perfect itself. Africa’s embrace of digital assets reflects not just a response to global trends, but a proactive approach to overcoming local financial hurdles and shaping a more inclusive and accessible economic landscape.

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Business

HAQQ Plans To Venture Into East Africa, Fueled by Innovation and Ambition

In the ever-evolving realm of technology and entrepreneurship, events serve as epicenters of innovation, uniting startups, investors, and tech enthusiasts. These vibrant gatherings not only foster networking and knowledge exchange but also provide a front-row seat to witness groundbreaking technologies emerging from diverse corners of the globe. Such was the case for the HAQQ team, whose invaluable experience at ETHsafari in Kenya late last September left them inspired.

In a recent blog post, HAQQ shared their observations about the East African crypto community, expressing profound enthusiasm for the region’s remarkable potential and dynamic nature. This excitement is not mere rhetoric; it is underpinned by a solid plan. HAQQ is committed to nurturing promising projects and startups, extending full support through their startup lab, HAQQ Labs. This initiative offers substantial ecosystem grants and incubation opportunities, amounting to a staggering $40 million.

According to the HAQQ team, their vision extends beyond digital footprints in East Africa; they aim to create a tangible impact by establishing a robust physical presence. One of their key initiatives involves fostering innovation and supporting local talent through HAQQ Labs and a hackathon in collaboration with local stakeholders.

The blockchain and cryptocurrency ecosystem in East Africa has witnessed rapid growth, as local talents harness the power of blockchain technology to address real-world issues and enhance livelihoods. Kenya, for instance, received a significant boost with $895 million in funding, as reported in 2022, marking the largest funding influx in the continent. However, while the landscapes of East Africa teem with potential, their counterparts in Western Africa present low-hanging fruit opportunities, thanks to their substantial population and ripe prospects. HAQQ Ventures’ strategic move into East Africa signifies not just a business expansion, but a commitment to fostering innovation, empowering local talent, and making a lasting difference in the region’s tech landscape.

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Business

Kenya’s Digital Revolution: Insights From The Inaugural Digital Assets Policy Safari

The Blockchain Association of Kenya (BAK) recently organized the inaugural Digital Assets Policy Safari (DAPS), a groundbreaking event aimed at shaping Kenya’s National Digital Assets Policy. Attended by a diverse group of stakeholders such as Regulatory Authorities, Financial Institutions, Entrepreneurs, Startups, Legal and Compliance Experts, Academia, Investors, Blockchain Developers, Non-Governmental Organizations, and Media representatives, the session aimed to foster education, awareness, and trust within the digital assets ecosystem.

Nadeem Anjarwalla, Binance Director for East and West Africa, emphasized the importance of creating an enabling environment through appropriate regulation. He highlighted that the right regulations could fuel industry growth, space development, and innovation. This discussion gained significance in light of Kenya’s Finance Bill 2023, which introduced a Digital Asset Tax, effective from September 1, 2023, raising concerns and discussions among experts.

During the event, experts like Evelyn Wanjiru, a Blockchain Legal Consultant; Fred Ogutu, a Tax Lawyer and Senior Associate at Bowmans; Bill Okello, Head of Legal and Regulatory Compliance at Sanduk; and Allan Kakai, Director of Legal and Policy Affairs at BAK, delved into the proposed Digital Asset Tax outlined in the Finance Act 2023. Allan Kakai urged the government to implement specific crypto regulations promptly, expressing concerns about the potential adverse effects of the tax on the industry.

Kakai highlighted the challenges faced in onboarding digital assets into regulatory sandboxes, citing the complexity and novelty of the technology as reasons for the delay. However, embracing innovations in the crypto sector and creating friendly tax compliance could open avenues for more clients, job opportunities, and increased income for Kenya.

The DAPS submissions included recommendations to strengthen rules on crypto lending and consider regulatory sandboxes. Recognizing stablecoins as valid forms of payment were also discussed, potentially expanding the digital assets landscape. The participants engaged in focused group discussions, drafting a mock crypto bill, formulating strategies for engaging with regulators, and developing a framework for consumer protection and education.

Esteemed partners like EthSafari, Sheria Online, Binusu, and Chasing Mavericks supported the DAPS initiative. The event served as a significant step toward creating a conducive environment for digital assets in Kenya, emphasizing collaboration, education, and effective regulation as key drivers of growth and innovation in the sector.

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Business

VALR, South African Crypto Exchange, Takes Pivotal Step Towards Global Presence with Dubai Regulatory Nod

South African cryptocurrency exchange VALR has achieved a major breakthrough in its global expansion strategy with the initial approval granted by Dubai’s Virtual Asset Regulatory Authority (VARA). VARA, established in 2022, holds the distinction of being the world’s first independent regulatory body overseeing virtual assets within Dubai’s free zones and mainland areas, excluding the Dubai International Financial Centre (DIFC). This approval, although not enabling immediate virtual asset services, signifies a critical milestone for VALR as it aims to establish a virtual asset exchange in Dubai, a pivotal move toward its international objectives.

Since its inception in 2018, VALR has facilitated transactions exceeding $10 billion in trading volume and garnered $55 million in funding. The exchange offers a diverse array of virtual assets for trading, including Bitcoin, and has amassed a customer base comprising over half a million retail clients and 900 corporate and institutional partners worldwide. VALR’s collaboration with regulators over the past five years has resulted in the development of regulatory frameworks that ensure public protection while fostering responsible innovation, according to Farzam Ehsani, Co-Founder and CEO of VALR.

Ehsani expressed VALR’s enthusiasm about the approval from VARA, emphasizing its significance in expanding their products and services to a broader global audience. The company, which secured $50 million in Africa’s largest-ever cryptocurrency funding round in 2022, has identified Asia, the Middle East, and the UAE as promising markets with substantial cryptocurrency activity. Dubai, in particular, stands out as a progressive and pragmatic jurisdiction for crypto businesses, making it an ideal base for VALR to cater to regional and international markets. Blake Player, VALR’s Head of Growth, highlighted Dubai’s reputation as a forward-thinking and crypto-friendly hub, providing an excellent opportunity for VALR to serve a global customer base.

VALR’s journey into the Dubai market underscores its commitment to responsible expansion and adherence to regulatory standards, marking a significant stride in the company’s quest for a prominent presence in the global cryptocurrency landscape.

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Technology

KoinWa Introduces a Web3 Education Platform

In a groundbreaking move, Nigerian cryptocurrency startup KoinWa has launched EduBlok, a cutting-edge web3 education platform designed to equip university and college students with essential skills. This initiative not only aligns with KoinWa’s core mission of facilitating cryptocurrency transactions but also addresses the educational disparity in emerging technologies like blockchain and artificial intelligence.

KoinWa, recognized as a promising African fintech startup, was selected for the inaugural Amazon Web Services (AWS) FinTech Africa Accelerator cohort in June. Building on this achievement, KoinWa’s CEO, Hakeem Disu, led the launch of EduBlok, a dedicated educational arm aimed at providing users with comprehensive knowledge and skills in blockchain technology.

Disu, an esteemed educator and the author of “How Blockchain is Solving Real-Life African Problems,” highlighted the absence of blockchain education in Nigeria’s academic curriculum. EduBlok aims to fill this gap by developing academic curricula, textbooks, and delivering extensive blockchain education and entrepreneurship training.

Funded by KoinWa, EduBlok has already made significant strides in underserved university communities, impacting over 10,000 individuals. The platform has distributed 15,000 e-books, enriching the educational landscape in Nigeria and contributing to a more knowledgeable society.

EduBlok’s mission aligns with the growing global recognition of the importance of blockchain and web3 technologies. As these technologies continue to revolutionize various industries, the demand for a well-educated workforce becomes paramount. EduBlok bridges the divide between traditional education and the evolving demands of the tech sector.

By imparting blockchain education and entrepreneurial skills, EduBlok empowers students to become future innovators in the expanding blockchain and web3 ecosystem. This initiative not only provides technical expertise but also nurtures an entrepreneurial mindset, encouraging the development of solutions for real-world challenges.

KoinWa’s EduBlok initiative exemplifies the commitment of forward-thinking organisations to drive educational innovation in emerging technology sectors. In the face of the rising global prominence of blockchain and Web3 technologies, such initiatives are pivotal in ensuring the workforce remains prepared for the digital age.

KoinWa’s launch of EduBlok underscores the company’s dedication to empowering the next generation of African students with crucial Web3 knowledge and skills. This initiative not only addresses the current educational gap but also positions these students to become future leaders and innovators in the dynamic realms of blockchain and artificial intelligence. As EduBlok continues to expand its impact, it holds the promise of transforming the educational landscape in Nigeria and beyond, creating a brighter and more technologically proficient future for all.

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Business

Victims Of A South African Bitcoin Scam Are Set To Receive A Portion Of The Funds Invested

In a significant development, the liquidators overseeing the Mirror Trading International (MTI) bitcoin investment scam in South Africa are gearing up to initiate the refund process for the victims. The plan, however, hinges on a court directive guiding the liquidators on how to handle the numerous claims pouring in, as reported recently.

Herman Bester, co-director at Tygerberg Trustees and a key figure in the liquidation process, stated that they are seeking legal clarification on how to handle the deposits received from investors in the form of BTC. While Bester did not confirm specifics, it is rumored that the reimbursement plan might see the so-called net losers receiving between 50% and 60% of their initial investments. This financial relief is made possible by the sale of around 7,000 BTC, the remaining coins from the 39,000 BTC initially deposited into the fraudulent scheme, according to the liquidators.

To streamline the reimbursement process, the liquidators are actively engaged in identifying genuine individual investors eligible for the refund. Bester highlighted their progress, stating, “Our forensic experts, following an exhaustive clustering process, have calculated the expected number of potential claims.” This meticulous approach aims to ensure that genuine victims are compensated fairly.

However, not all victims are expected to file claims, especially those suspected of involvement in illicit activities like money laundering. The liquidators are diligently sifting through the claims, discerning genuine cases from dubious ones.

Regarding the timeline for the reimbursement, the liquidators anticipate multiple payments as they continue collecting funds from individuals who profited from the scam. Bester revealed their outlook, stating, “We expect this process to continue for at least another 2-3 years as we collect repayments from winners.”

The victims of the MTI scam are now on the brink of potential financial relief, pending the court’s guidance. As the legal process unfolds, the liquidators remain committed to ensuring a fair and just distribution of the recovered funds, offering hope to those affected by this unfortunate incident.

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Business

Kenyan Parliamentary Panel Calls for Worldcoin Shutdown Amid Privacy Concerns

A Kenyan parliamentary committee has demanded the country’s information technology regulator shut down operations of the cryptocurrency project Worldcoin within Kenya until stricter regulations are established. The government suspended the project in August due to privacy concerns over its practice of scanning users’ irises in exchange for a digital ID to create a new “identity and financial network.” Worldcoin, initiated in multiple countries globally by Tools for Humanity, a company co-founded by OpenAI CEO Sam Altman, faced scrutiny in the UK, Germany, and France as well.

Despite the August suspension, Worldcoin maintains a virtual presence in Kenya accessible via the internet. The parliamentary panel, consisting of 18 lawmakers, has urged the regulatory Communications Authority of Kenya to disable Worldcoin’s virtual platforms, including blacklisting related IP addresses. The panel also called for the suspension of the company’s physical presence in Kenya until a legal framework for regulating virtual assets and service providers is established.

Worldcoin’s press office stated that they had not received any official announcement directly from the committee. The panel’s report will be presented to the National Assembly for further consideration and adoption at a later date.

During the suspension in August, authorities criticized the project’s method of obtaining consumer consent, suggesting it bordered on inducement, as individuals had to queue up to have their irises scanned in exchange for a monetary award of just over $50. The parliamentary investigation revealed that Worldcoin may have scanned the eyes of minors, as there was no age-verification mechanism in place during the exercise. The panel also called on government ministries to develop regulations for crypto assets and firms offering crypto services and urged the police to investigate Tools for Humanity, taking necessary legal action.