Two weeks in the world of crypto is worth a lot. Our news digest will now come bi-weekly, which means we will have even more trending facts and events to update your knowledge about what is going on in this heated market. The Central African Republic is again part of our highlights and will officially hit the crypto world with its Sango coin very soon. South Africa is also making its way to the headlines as the country negotiates the most efficient way to regulate crypto use. Scroll down to read more about these and other important facts that recently impacted the African crypto bubble.
South Africa Reserve Bank (SARB), SA’s central financial institution, recently announced that the official national regulations for crypto transactions will be ready by the end of next year. Deputy Governor Kuben Naidoo has already clarified that the country still does not intend to adopt cryptocurrencies as legal tender, but it is dedicated to properly regulating the market as it keeps growing in size and number of users. Once the sector is officially under SA’s set of financial laws, crypto will be considered a financial product, and citizens who choose to keep their financial assets in crypto form will benefit from the safety and protection provided by the national authorities. The decision to finally ensure that cryptocurrencies have official regulations in the country is a result of raised awareness about the benefits of this market. SA’s central bank has also been interested in how other countries have been upgrading and diversifying their payment industries by exploring the potential of cryptocurrencies.
Following up with the Central African Republic’s pioneering crypto project, the Sango hub, the country just announced that starting July 25, it will officially sell the Sango coin to the open public. The CAR will put approximately 210,000,000 Sango tokens in the market, and prices start as low as $0,10. However, investors must make purchases with a minimum value of $500. Those who guarantee their new Sango assets will be rewarded by CAR’s authorities as the country sees them as part of the digital transformation that the local authorities have invested so much in. The Sango initiative will also launch the first-ever citizenship program in the metaverse, and crypto enthusiasts who buy Sango coins will be granted not only a location in the metaverse but also a piece of real estate property in the country.
The latest report issued by the United Nations Conference on Trade and Development (UNCTAD) showed that Kenya occupies the first position in the list of African countries with high rates of crypto owners. Official statistical data shared by UNCTAD confirms that almost 9% of Kenya’s population is part of the crypto market, which puts the country also among the top five countries in the rank of crypto ownership. The first four names on the list are Ukraine, Russia, Venezuela, and Singapore. UNCTAD recognizes that the popularization of crypto solutions is an unstoppable phenomenon but recommends countries like Kenya, where the rise of crypto popularity has been particularly relevant to the overall financial system, to impose mandatory registration for crypto assets and transactions.
Binance’s CEO Changpeng Zhao used his official Twitter account to share that he has recently connected with Ivory Coast and Senegal presidents to share his plans for an initiative being designed to boost the rhythm of crypto promotion in the African continent. Zhao shared photos of his in-person meetings with both presidents and also tweeted about his views about Africa and its relationship with crypto nowadays. Zhao acknowledged that only 10-20% of African citizens are officially banked and claimed that the continent is “in need of financial access and inclusion.” The CEO also announced that he has also met with representatives of other countries to discuss crypto solutions but noticed that, particularly in Africa, the continent is “primed for crypto adoption.”
Recent data from the World Bank shows that Sub-Saharan Africa is one of the most expensive areas to send monetary funds to. Despite the high fees that range around 8% for every $200 sent, the region accumulated almost $50 billion in international wires last year. The costs that African migrants have to bear when sending money abroad are beyond the UN’s recommended threshold of 3% (or less), so WB’s data show that there is room for improvement. Cryptocurrencies are here for that. WB’s report shows that crypto transactions are an efficient way to facilitate the logistics of sending money back home, for instance. Between 2020 and 2021, African migrants sent $105 worth of cryptocurrency to receivers in other African nations. With crypto, migrants can access more convenient platforms to send remittances without having to appeal to unsafe, informal channels that might help them dribble the bureaucratic and costly steps of the process.
We will be back in two weeks with more updates about Africa’s journey towards crypto adoption. Keep an eye on our social channels to get crypto-related content and understand what our team has been working on to bring you closer to crypto solutions. Go give us a follow!