Emerging Onchain This Week #4
Hello crypto friend 👋
Welcome to the fourth edition of the Emerging Onchain This Week. Feast on crypto developments from across Africa over the last 2 weeks. 🍽️
Ecosystem
-Jia raises $4.3M to expand into emerging markets
The funding will be used to expand Jia's operations in Kenya and the Philippines and to explore new markets in West Africa, Latin America, and Asia. Jia's platform uses blockchain technology to provide loans of up to $5,000 to small businesses that would otherwise be unable to access traditional financing.
Jia's focus on small businesses is also significant, as small and medium-sized enterprises make up 90% of businesses shaping the African economy. Jia’s raise could make 2023 another big year for crypto funding in Africa, after a record $155 million was raised in 2022, according to Emerging Onchain data.
-Zimbabwe backs Digital Tokens with Gold
To stabilize the new Zim Dollar Digital (ZDD), Zimbabwe's Reserve Bank (RBZ) will use 140 kg of gold to support the currency. The ZDD is part of a wider effort by the RBZ to stabilize the economy, which has been plagued by hyperinflation and a devalued Zimbabwean dollar (ZWL) which went from 1USD= 108.67ZWL in Jan 2022 to 1USD=684.33 by Dec 2022 according to official rates by RBZ.
Comparatively, CBDC adoption in Africa has been low, with Nigeria's eNaira being used by only 0.5% of the population. Similarly, the Central Bank of Kenya deems CBDC a low priority, stating that the payment problems can be solved by strengthening innovations around the existing payment ecosystem.
-Roqqu receives regulatory approval to operate in South Africa
Roqqu’s expansion into South Africa will give more people in the region access to purchase cryptocurrencies using the South African Rand (ZAR). The Nigeria-based startup has also expanded its operation to Ghana, and Kenya, and recently obtained a European virtual currency license which allows it to operate across 30 countries in Europe.
Roqqu’s expansion indicates that African regulators may be becoming more open to the adoption of cryptocurrencies. The South African Financial Sector Authority (FSCA) had earlier declared crypto assets as financial products, which is a trend being followed by other African countries including Nigeria and Kenya.
-Zebedee teams up with Bitnob to bring Bitcoin gaming into Africa
Through Zebedee-powered apps and games, African users can earn Bitcoin whilst gaming, listening to podcasts and for other rewarded activities. This Bitcoin can then be converted to local currencies including Nigerian Naira, Kenyan Shillings and Rwandan Franc through the Bitnob exchange.
This marks Zebedee’s first official step into Africa. The Lightning Network's ability to facilitate microtransactions makes it an attractive solution for game developers in Africa where over 186 million people play video games.
-Nelson Mandela Foundation to raise $1.9M from NFT sells
The Nelson Mandela Foundation has launched a unique digital art collection that represents Nelson Mandela's legacy. Each of the 1,918 NFTs is priced at $1,000. The proceeds from the NFTs sales will go to support the Nelson Mandela Foundation’s work.
The sale of Mandela NFTs shows that NFTs can be used to preserve Africa's legacy, raise money for important causes, and boost the adoption of cryptocurrencies in Africa.
Product Updates
-Busha Commerce goes live
Nigeria-based crypto exchange, Busha, has launched Busha Commerce, a platform that enables businesses to accept cryptocurrencies as payment. Busha Commerce also provides instant payments, eliminating delays associated with traditional methods.
The launch of Busha Commerce comes amidst the closure of other African crypto payment companies like LazerPay, indicating the competitive landscape in the region.
-Patricia suspends withdrawal following security breach
Patricia Technologies (a Nigerian crypto payments company) has temporarily suspended withdrawals on its app following a security breach, that affected Patricia Personal, compromising Bitcoin and Naira assets. It has assured users that their funds are safe.
However, Patricia said it has identified an individual connected to the breach and is working with law enforcement agencies to pursue the matter further.
-UK authority proposes treating crypto as gambling
The move to treat crypto assets as gambling would mean that companies offering crypto services in the UK would need to be licensed by the Financial Conduct Authority (FCA).
The proposal comes as the FCA is concerned that the risks associated with crypto assets could spill over to the broader financial markets.
Some crypto proponents have criticized the proposal, saying that it is too restrictive and could stifle innovation. They argue that this could force more companies out of the UK, much like we are seeing in the US, with Coinbase making a move into Ireland, which is more crypto-friendly.
-Ripple rolls out CBDC platform
With ongoing pilots involving the Republic of Palau, the Central Bank of Montenegro, and the Royal Monetary Authority of Bhutan, Ripple aims to provide central banks and governments with the means to issue their own digital currencies.
Ripple's CBDC platform with improved payment settlement, reduced risk, and enhanced user experiences, has the potential to accelerate the integration of cryptocurrencies into mainstream financial system.
Emerging Onchain data shows that, in 2022, African crypto startups raised over $155 million, almost doubling the $86 million raised in 2021, indicating a thriving ecosystem.
Exchanges were the dominant players in fundraising, accounting for 38.7% of the total funding, amounting to over $129 million between Q1 2019 and Q1 2023.
This data is pulled from the Emerging Onchain deal database, which lists 140+ fundraising rounds, the amount raised by different African startups, when and from which VCs.
Knowledge List
Here are a few resources we are reading, watching, and listening to catch up with emerging trends affecting the crypto space.
Podcast episode w/ Njoku Emmanuel- Inside the Lazerpay shutdown
Lesson from Nestcoin CEO on the FTX crash and pivot to Onboard
Here is why the IMF is against Bitcoin w/Alex Gladstein- Bitcoin vs the IMF
Building a DAO?- here is a Framework for the Next Generation of DAOs
Opportunities
We have curated potential opportunities from across Africa that can aid your journey.
TON launches $25 Million Accelerator Program
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