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‘Project Khokha’ South Africa’s Central Bank’s Tokenized Fiat Interbank Payment System

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South Africa is going the crypto way as the country’s Central Bank (SARB) had decided to create a blockchain protocol using the Proof-of-Concept (PoC). The pilot is to tokenize fiat using the Quorum blockchain to create an interbank payment system. The project is called ‘Project Khokha’ and it is built on Quorum an Ethereum-based private blockchain.

The trial version of the Quorum that uses an Istanbul Byzantine Fault Tolerance (IBFT) consensus mechanism was tested using two encryption methods – Pedersen commitments and range proofs. The project had Seven South African banks who participated in the trial that was spearheaded by ConsenSys who was also the technical partner. Also, PricewaterhouseCoopers Inc. (PwC) an international audit and accounting firm was a supporting partner.

The report released by SARB’s explained that the ‘Project Khokha’ will  investigate the “interconnected” issues of the platform’s, confidentiality,resilience, scalability, and finality. The project also has the primary aim “to build a proof of-concept (PoC) wholesale payment system for interbank settlement using a tokenized South African rand on distributed ledger technology (DLT).”

The SARB report also concluded that the system could “have considerable implications,” noting that:
“If one starts from the point where money is tokenized…and then represented on a DLT system, then this system can be developed to enable other uses beyond wholesale settlement. Examples include the exchange of tokenized money for other tokenized assets, like bonds or securities.”

The SARB declared last month that cryptocurrencies do not meet the requirements of money and should therefore be known as “cyber-tokens”. Earlier, the central bank had established a self-regulatory body to monitor the progress of cryptocurrency in the country and prevent risks. With the Project Khokha employing a disintermediated system, banks no longer have to take a central stance but each bank will be responsible for configuring its own node on the network and instead of printing fiat for bank settlements, it would mint tokens on the blockchain.

 

What do you think about Project Khokha? Share your opinion with us in the comment section below.
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Draft Cryptocurrency Law Released in South Africa

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Earlier in April, the South African Revenue Service (SARS) announced its plans to tax cryptocurrencies. The SARS just released a draft cryptocurrency tax legislation to define the framework of digital currency taxation in the country.
SARS aims to place a tax on incomes generated from crypto trading and operations.

Since April 2018, the tax agency had laid out plans to tax cryptocurrency income. The SARS confirmed by press release in April stating,

“In South Africa, the word “currency” is not defined in the Income Tax Act (the Act). Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange. As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature.”

However, under the draft taxation legislation, cryptocurrencies will be classified as intangible assets subject to income tax. South Africans may be mandated by the Law to declare every income accrued from cryptocurrency if this law is adopted.

The draft equally added that cryptocurrency transactions are excluded from value-added tax (VAT). This is because such transactions are viewed as separate financial services transactions by the SAR. So, if you sell, purchase, transfer ownership, issue or hold cryptocurrency there will be no VAT to be paid.

Despite the looming presence of regulations and scams, the S.A cryptocurrency industry continues to thrive. A recent survey even revealed that about 38 per cent of South Africans expressed their regrets in not investing in cryptocurrencies earlier.

 

What do you think about the taxation law? Share your opinion with us in the comment section below.
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Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Blockchain transforms Cocoa Farming in Ghana

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The blockchain technology has proven that financial inclusion can be made possible to all. Farmers in Ghana are beginning to employ the technology to increase the production of Cocoa. The Olam Farmer Information System (OFIS) is helping to change the profits of farmers, tripping their production and reducing dependency on the pesticide. Farmers now share farm data with advisors using the OFIS app and receive recommendations on how to increase their yields.

Olam apps allow products to be tracked from the farm, and farmers can check cocoa prices and trade online, achieving a better price for their crops. Olam technology is applying the blockchain technology to the supply chain management of cocoa. Allowing products to be tracked from the moment it leaves the farm. Farmers can also use the Olam app to check cocoa prices and trade online, receiving a better bargain price for their crop. This is increasing the farming yield as a farmer from Sefwi, Muhammed Adams, explained that since he started using the OFIS farm development plan, he now harvests 25 bags of cocoa instead of his usual 7 bags.

Securing better prices for their products is one thing that farmers do not really get. But, now with the benefit of digital technologies, farmers can now choose who to sell their products to, picking the price that suits them best. Simon Brayn-Smith, head of cocoa sustainability at Olam explained that Money can be paid directly into the farmer’s mobile money wallets. The company is also setting up Olam Direct in Indonesia which will allow farmers to sell cocoa directly to the company at a much better daily price. Since accessing the internet is still a problem for most farmers, the firm designed their apps in such a way that most of them can run using text messaging. The future of farming is being built on the blockchain and very soon we anticipate a world of change.

 

 

What do you think about applying blockchain in Agriculture? Share your opinion with us in the comment section below.
Image credit: pixabay,

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Blockchain Accelerator Funds Kenyan Startups

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Sofia-based æternity Starfleet Incubator for blockchain startups has enabled two Kenyan based startups secure the needed funding for their projects. The startups, UTU Technologies and RideSafe took the top position in the final event of æternity Starfleet. UTU Technologies had developed a machine learning algorithm optimised for trust while RideSafe was a startup which provided health services to motorcycle taxi drivers.

The two startups were not the only ones to benefit from the event as
æternity and æternity Ventures, overseers of the global incubator programmes and partnerships, announced that a total nine projects made it to the finals and they will receive a combined sum of US$1.3 million in investment. US$150,000 went to a Croatian startup while RideSafe and the remaining teams had the remaining funds distributed amongst them. The platform was a great one for these startups as a number of investment funds and angel investors followed the event online.

Earlier in April, UTU had raised funding from Hong Kong-based accelerator Zeroth receiving US$200,000. The team also got an additional US$50,000 from æternity Ventures’ partner network. Jason Eisen, chief executive officer (CEO) of UTU Technologies was excited about the out come and said, “Even being invited to take part in the final event of æternity Starfleet was a huge privilege for our team, and winning the top prize is vindication for our tireless efforts to date. This is a strong vote of confidence from one of the leading authorities within the blockchain sphere, and æternity’s support has been incredibly beneficial during the Starfleet programme.”

On the other hand, Nikola Stojanow, CEO of æternity Ventures explained, “We are beyond excited to continue working with the æternity Ventures team, and look forward to taking our project to the next level with their guidance and vision.” Nikola was impressed by the dedication, potentials and passion of the teams. He also added, “The finalists have demonstrated an innate ability to take our feedback and fine-tune their business model and roadmap accordingly. I’m very excited to see the project progress to the next phase of development.”

 

 

What do you think about these startups? Share your opinion with us in the comment section below.
Image credit: pixabay,

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Ditcoin Goes to the Grassroot

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Cryptocurrency is going to the grassroots and Ditcoin is at the forefront. The CEO of Ditcoin, Tony Nwabishop was in the  Northwestern state of Katstina in Nigeria over the weekend and he spent his time explaining the basics of the blockchain technology and importance of cryptocurrencies to the people. It is no news that about 40% of Nigeria’s population are still Unbanked and it is important to include these people in the financial revolution that is currently ongoing.

Building a Solid Foundation

Speaking on the theme, Awareness on the Blockchain Technology, Cryptocurrency and Ditcoin, Mr Tony enlightened the people on the importance of the blockchain and the need for a privacy coin such as Ditcoin. He explained that, Ditcoin which happens to be Africa’s first privacy cryptocurrency is particular about protecting the privacy of its users.

The CEO posted on his social media handle, “And finally the Prince of  Katsina goes Crypto, Ditcoin now has 100% support from the prominent men in katsina. The first crypto city Powered by ditcoin supported by Katsina state Loading…….. #cryptoAfrica #cryptotvplus #ditcoin #privacycoin #blockchaintechnology.” This spells better things for the crypto space in Nigeria.

A Future For Crypto Adoption

Currently in Nigeria, people own more sim cards than bank accounts and this is making crypto adoption possible. As there is no need to go to a bank before owning a crypto account. The popularity of cryptocurrency is rapidly growing in Nigeria and sometime this month the trading volume hit 170 billion naira mark. With cryptocurrencies such as Ditcoin preaching the crypto gospel in Nigeria we look forward to seeing a future where crypto adoption is made possible.

 

What do you think about building Insurance on the blockchain? Share your opinion with us in the comment section below.
Image credit: pixabay, cryptotvplus

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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