📌 Emerging Onchain This Week #7
Welcome back crypto friend!👋 This week we bring you African crypto updates & data from countries including Namibia, Libya, Nigeria, South Africa & Rwanda
Namibia passes the Cryptocurrency and Digital Asset Regulatory Framework
On the 22nd of June 2023, Namibia’s lower parliament house passed the ‘Namibia Cryptocurrency and Digital Asset Regulatory Framework’ bill aimed at regulating crypto, digital assets and virtual assets service providers (VASPs). Included in the 45 page bill document are chapters on regulatory authority and licensing.
Namibia’s Minister of Finance and Public Enterprises, Lipumbi Shiimi, reportedly mentioned the establishment of a regulatory body to grant and supervise VASP licenses. Non-compliane parties could face penalties of up to 10 years in prison and 10 million Namibian Dollars (~$671,572). Namibia joins the likes of Nigeria and South Africa in a shift towards friendly-regulatory environment.
The CBN approves eNaira for Diaspora remittances and outlines procedures for its implementation
Individuals in the diaspora can now send money to their family members in Nigeria using the eNaira as per a new circular from the government. It goes on to say that the option for eNaira payouts shall continue to run concurrently with the Dollar payout, the public will not be forced to receive all proceeds in eNaira. This move is part of a grander plan to increase eNaira adoption.
The eNaira launched back in October of 2021, making Nigeria the 2nd country in the world to launch a CBDC, yet the IMF reported that in its 1st year there were only 860,000 retail eNaira wallets (0.8% of the number of active bank accounts in Nigeria).
Libya cracks down on illegal crypto mining
As many as 50 Chinese nationals were detained in Libya’s town of Zliten in June, in connection to the raid of a crypto farm. A more recent farm bust in Misrata and Tripoli has had footage circulating of multiple rows of Bitcoin & other cryptocurrency mining server racks.
Crypto is outlawed in Libya due to its supposed money laundering capabilities, however , it seems the country’s cheap electricity has made them a target for illegal underground mining. Prime Minister Abdul Hamid Dbeideh blames these illegal farms for the frequent power outages now plaguing the country.
South African Reserve Bank continues to explore distributed ledger technology (DLT)
In the annual 2022/2023 report, the South African Reserve Bank stated that they have continued research and exploration of the DLT since April last year. Thus far, the research has resulted in a possible tokenised central bank money for interbank purposes - this would be in the form of a CBDC, and a candidate for a commercial bank stablecoin.
There is no timeline on further developments and adoption as yet, the SARB continues to explore this new age concept of ‘open finance'. Interest in CBDC is ramping up globally with 130 countries (98% of global GDP exploring CBDCs).
Product Launches
Chipper Cash formally launches in Rwanda
Fintech company Chipper Cash formally launched on the 22nd of June 2023 in Rwanda at the Inclusive Fintech Forum, thus expanding their reach across the continent into its 6th African country, the others being Uganda, Kenya, Nigeria, Ghana, South Africa and now, Rwanda.
Founded in 2018, the company is an innovative app that helps to facilitate cross-border fund transfers, enable virtual card global payments and offer investment opportunities in crypto and global stock markets. Currently, Chipper Cash supports multiple currencies, they plan to further expand their offerings in the near future including but not limited to Chipper for business.
The UKs Landmark Bill recognizes crypto as a regulated activity
The United Kingdom has passed the Financial Services and Markets Act which positions the UK as a leader in the crypto industry openly embracing the transformative potential of crypto, while also encouraging overall crypto friendliness within the region. The biggest point of interest in the act is the provision for regulating crypto-assets and its providers.
Crypto-friendly regulations provide an enabling environment for the growth of the ecosystem and set a global precedent for it to be more accepted.
Tether collaborates with the Georgian government to build Blockchain peer-to-peer platform
Tether recently signed a Memorandum of Understanding with the Georgian government to build a Blockchain peer-to-peer platform for the state to develop and adopt Blockchain-based products within the state.
Tether also plans to collaborate with local academic institutions to get students to understand how blockchain technology works as well as empower them with the knowledge and skills necessary to excel in the cryptocurrency industry.
African countries are actively exploring digital currencies much slower than the global counterparts, this map by Statista and Atlantic Council shows the extent of this exploration.
Knowledge list
Here are a few resources we are reading to catch up with the emerging trends affecting the Crypto space.
Reading the Web3 and Crypto 2023 report on the performance of Web3 in 2023
Learning about Web3 investments in the Web3 investment and product innovation trends amongst large U.S companies
The FTX bankruptcy liquidator released its second interim report, here is a quick summary of the 35+ page report
From Zuzalu, Yoseph Ayele & Eche Emole spoke on their perspectives of Crypto in Africa
IMF article on the benefits of the reason for the rise of CBDCs
Togo’s revision on laws linked to electronic transactions and mobile money
Thank you for reading this edition of Emerging Onchain This Week.
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