📌 Emerging Onchain This Week #6
Hello crypto friend 👋 welcome back! This week we bring you African crypto updates & data from countries including Zimbabwe, Uganda, CAR and Kenya
- Zimbabwe launches platform for transferring its digital gold token
Following the launch of its Digital Dollar in May, Zimbabwe has announced the 2nd phase of the token’s rollout, a peer-to-peer and peer-to-business platform, launching at the end of this month. It is hoped this will increase the token’s usage. Other policies include the token being accepted as collateral for loans, the ability to buy the token using foreign currencies and the ability to hold the tokens in e-gold wallets or bank-issued e-gold cards.
The token, which Zimbabwe’s Reserve Bank’s Governor asserted is not a currency, aims to reduce the country’s dollar dependency following 10 years of the USD, alongside other major currencies, having legal tender in the country.
- Nigeria to tax crypto earners?
It’s emerged that, before leaving office on the 29th of May 2023 Nigeria’s former President Buhari signed into law a 10% tax on digital assets (like crypto) profits. A seemingly odd move, as his administration was not crypto-friendly with them preventing any banks or fintechs from engaging with or enabling their customers to use crypto.
Since President Tinubu has come to power, Nigeria has taken a more crypto-friendly stance with the passing of its Blockchain Policy which aims to create a blockchain-powered economy. The move to tax Nigerian crypto earners echoes Kenya’s recent introduction of crypto taxes.
- Uganda encourages crypto firms to join its sandbox
This month the Bank of Uganda announced that it was willing to admit crypto businesses into its Regulatory Sandbox. In a letter to the Blockchain Association of Uganda, it invited its members to share their knowledge about crypto with the Bank.
This marks a stark contrast to Uganda’s warning to banks and fintechs that their financial licenses would be revoked if found facilitating crypto trading. Uganda’s sudden willingness to engage with the local crypto scene mirrors other African countries, such as South Africa with its licenses for crypto companies, Zambia which is due to complete its crypto regulation tests this month and Ethiopia with its plans to launch a decentralised digital identity database for students and teachers.
- Central African Republic plans to tokenise its natural assets
The Central African Republic (CAR) has passed a law to tokenise its natural resources including land and mines. The move aims to encourage foreign investment. CAR has historically taken a pro-crypto stance, recognising Bitcoin as a legal currency and announcing plans to launch its digital currency, Sango.
Using crypto to facilitate and fund the maintenance of natural resources, is not new to the continent. Last year the Democratic of Congo’s Virunga National Park launched its own Bitcoin mine that runs on clean energy.
Product Launches
- Busha launches in Kenya
Busha, a leading Nigerian crypto exchange announced its expansion into Kenya. This comes weeks after the launch of Busha Commerce, a platform that enables businesses to accept cryptocurrencies as payment.
It seems as if the African crypto exchange space is heating up with foreign players actively entering the region For example, WhiteBit expanding into Nigeria and KuCoin launching its P2P trading service in Kenya. Plus, theres been local players expanding to new African markets with Roqqu announcing its expansion into South Africa and VALR expanding into Zambia.
- Mazzuma to launch AI-powered smart contract platform
The Ghanian based mobile payments platform, Mazzuma announced the launch of MazzumaGPT, Africa’s first AI-powered smart contract platform. Mazzuma was founded in 2015 and initially focused on the web2 remittance sector.
This announcement comes at the same time as its announcement of receiving funding from Adaverse.
-BlackRock Applied for a Bitcoin ETF
Blackrock, one of the world’s largest asset managers, has filed for approval for a Bitcoin Exchange-Traded Fund (ETF). If approved, Blackrock is expected to use Coinbase Custody for custody along with their spot market data for pricing.
A Bitcoin ETF would allow traders exposure to Bitcoin via the traditional finance markets without needing to buy/sell it on an exchange. Multiple applications for Bitcoin ETF’s have rejected by the SEC due to crypto being an easily manipulated market that lacks sufficient surveillance. Approval could also play into the SEC’s narrative of ‘crypto is a security’.
-Pillow to Discontinue All Services
Citing regulatory uncertainties and the state of the markets as the reason, Pillow Fund has announced to its user base of 75k+ people in over 60 countries that they would be discontinuing all services in the coming weeks. A deadline has been set for the 31st of July for users to withdraw all their funds, while the bank withdrawals will be suspended by the 7th of July.
Pillow is a Singapore-headquartered fund backed by Accel India, Quona Capital, Elevation Capital & Jump Crypto among others, had raised $21 million since their 2021 launch. Last year they expanded into Nigeria and Ghana with features for investing, spending and saving crypto.
Emerging On-chain data shows that between February 2019 to March 2023, only 17.4% of African crypto startups had at least one female founder or cofounder and raised an average of $6.4m. Outlier Ventures is hosting a women's web3 hour to change that
This data is pulled from the Emerging Onchain deal database, which lists 140+ fundraising rounds, the amount raised by different African startups, and when and from which VCs. All the data has been manually curated from public announcements and information shared with me by VCs.
Here is a short list of some of the resources we are reading, listening to or watching to catch up on the emerging trends affecting the crypto space.
Emurgo’s launches its State of Web3 in Africa report
Cameroonian separatists create their cryptocurrency, AmbaCoin.
The June 2023 Chainalysis Guide to On-Chain User Segmentation for Crypto Exchanges
Cointelegraph episode from the Hashing It Out podcast with the CEO of Aya, Eric Annan
Wondering the perfect time to release your Tokens? Read this to understand how Tokens in Web3 Products work: When to Release and When to Wait
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