"U.S. establishes Bitcoin reserves, sparking questions about potential African adoption"
In the ever-evolving world of technology, Africa continues to make significant strides in the realm of cryptocurrency and blockchain. Here's a roundup of some of the latest news:
Swiss fintech Centi has partnered with pan-African crypto exchange Yellow Card, aiming to simplify crypto-powered remittances between Switzerland and 20 African countries. This collaboration will enable Swiss users to convert fiat into crypto using Centi-issued non-custodial wallets, with transfers sent directly to mobile wallets like M-PESA [1].
Meanwhile, Lisk's Blockchain Incubation Hub program has graduated 23 African startups, with applications for the second cohort now open. The six-month incubator, backed by Swiss-based CV Labs, aims to empower African blockchain projects. Notable participants in the first cohort include Tata iMali, TrendX, Afrikabal, Pokecoin, Jamit, Nomachain, and others [2]. Lisk will offer up to $20,000 in grants per startup, with a chance to secure $100,000 in additional funding [3].
Yellow Card facilitates the crypto-to-cash exchange, enabling recipients to receive funds instantly in local currency with minimal fees. This service is particularly beneficial in regions where access to traditional banking services is limited [4].
African blockchain talent firm Web3Bridge has opened the waitlist for its 13th cohort, providing another opportunity for innovative African startups to develop and grow [5].
Hedera has made a strategic investment in stablecoin payments company Ivorypay. Ivorypay plans to integrate Hedera's distributed ledger technology into its platform and admit a Hedera representative to its board of advisors [6].
In other news, VISA has opened applications for Cohort 4 of its Africa Fintech Accelerator Program, while USAID has announced the Women Entrepreneurship Incubator program in Kenya [7].
The United States Bullion Depository, commonly known as Fort Knox, is a heavily fortified vault housing much of the nation's gold reserves. The creation of a similar digital counterpart, the Strategic Bitcoin Reserve (SBR), reflects a policy shift, with Bitcoin now treated like gold [8]. The SBR, sourced from seized assets, holds approximately 200,000 BTC (~$17 billion) and functions as a "digital Fort Knox" - a secure, untouchable store of value [9].
The establishment of the U.S. Strategic Bitcoin Reserve might increase global legitimacy and prompt African central banks to revisit Bitcoin’s role as a reserve asset. However, actual adoption as a reserve asset will depend heavily on local regulatory frameworks, economic stability concerns, and appetite for innovation amid risk management [10].
While some African central banks, especially those dealing with volatile currencies and seeking inflation hedges, might reconsider Bitcoin as part of their reserves, broad or rapid adoption remains unlikely without stronger regulatory frameworks and risk mitigation strategies in place [10].
Footnotes:
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- Centi's partnership with Yellow Card aims to simplify cryptocurrency remittances between Switzerland and 20 African countries, utilizing non-custodial wallets for transferring crypto to mobile wallets like M-PESA.
- The Lisk Blockchain Incubation Hub program has graduated 23 African startups, with applications for the second cohort now open, offering grants worth up to $20,000 and potential for additional funding of $100,000.
- Yellow Card facilitates the exchange of crypto into local currency, making it beneficial in regions with limited access to traditional banking services.
- Web3Bridge, an African blockchain talent firm, has opened the waitlist for its 13th cohort, providing another opportunity for innovative African startups to develop and grow.
- Hedera has made a strategic investment in Ivorypay, a stablecoin payments company, with plans to integrate Hedera's distributed ledger technology into its platform.
- VISA has opened applications for Cohort 4 of its Africa Fintech Accelerator Program, while USAID has announced the Women Entrepreneurship Incubator program in Kenya.
- The creation of a digital version of Fort Knox, known as the Strategic Bitcoin Reserve, reflects a policy shift, treating Bitcoin like gold and offering a secure store of value.
- The establishment of the U.S. Strategic Bitcoin Reserve might inspire African central banks to reconsider Bitcoin's role as a reserve asset, but its actual adoption will rely on local regulatory frameworks, economic stability, and innovation within risk management.
- Some African central banks might reconsider Bitcoin as part of their reserves, particularly those dealing with volatile currencies and seeking inflation hedges, but broad or rapid adoption remains unlikely without stronger regulatory frameworks and risk mitigation strategies.
