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Stop Processing Cryptocurrency: Central Bank Orders

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The Indian Central Bank has given a directive to all banks operating within the country to stop processing cryptocurrency for customers. The policy restricts RBI-regulated institutions from allowing their customers to purchase cryptocurrency and which also bars banks from providing such services to businesses.

In a statement:

“Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated with dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time.”

The effect of the ban also restricts traders from depositing fiat currency at cryptocurrency exchanges, forcing them to use peer-to-peer (P2P) trading platforms. LocalBitcoins is a peer-to-peer trading platform whose transactions dominated INR currently account for roughly $1million in volume on a weekly basis.

Blockchain has so many beneficial applications but cryptocurrencies raise a number of issues related to consumer protection, market integrity and preventing financial crimes; the RBI statement acknowledges.

“Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system,” the RBI said. “However, Virtual Currencies (VCs), also variously referred to as cryptocurrencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.”

The result of this ban has seen the India-based cryptocurrency trading volume drop by almost 90% in recent weeks as banks have already begun adherence to the non-cryptocurrency transactions and as a result restrict exchanges access to financial services. Although it has not been declared as a Federal Government policy.

Image courtesy: Shutterstock, CoinDance

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Ghana’s SEC Cogitates over Regulation of Cryptocurrency Frame Work

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The Securities and Exchange Commission (SEC) is considering licensing cryptocurrency in Ghana to enable all forms of crypto to be considered as a legal tender –that is to say, legit money for use within the nation’s borders. This has always been the aim of cryptocurrency everywhere in the world, digital assets like bitcoin were invented to give people direct access and control over their finances.

According to News Ghana, Ghana may sooner or later receive a regulatory framework as touching cryptocurrency that would enable bitcoin startups and exchanges operate legally without the threat of a potential regulatory stern.

The Regulation and State Of Cryptocurrency in Ghana

2019 is turning out to be a year of crackdown for the SEC. Since late 2018, the organization has been stern on crypto companies that refuse to appropriately register their operations.

Just like many central banks in Africa, the central bank of Ghana has warned citizen against transacting in crypto due to the risk of being scammed involved. The Secretary to the Bank of Ghana – Frances Van-Hein Sackey in response to the GCCH scam, said: “Anyone who does business with these entities does so at his or her own risk and the Bank of Ghana will not be liable for the refund of any deposit lost by a depositor.”

The recent state of cryptocurrency in Ghana, however, could change if the SEC regulates the sector, according to a report by GhanaWeb. SEC ‘Ababio in a statement said that Ghana’s Economic and Organized Crime Office (EOCO) is probing three cryptocurrency companies whose operators are currently missing in action.

What Does This Step By SEC Mean For Ghana?

According to Richard Gardner – CEO of Modulus, the step taken by Ghana’s SEC is meritorious since regulation of the cryptocurrency will provide standard rules for exchanges to operate by. In his opinion, this will make the industry viable while also protecting the people from exchanges that engage in, abusive trading, market manipulation, and money laundering.

Gardner further stated that the public and private sectors should combine forces towards creating these regulations.

The best way to regulate an industry, especially one which is so technical, is to bring together those involved in the private sector, along with those from the public policy side. Together, we can usually find a way to encourage industry growth while protecting consumers,” – says Richard Gardner.

Cryptocurrency Adoption in Africa

Fascinatingly, there has been a lot of progress occurring in the Africa crypto space. There are reports that South Africa’s central bank is actively studying cryptocurrency and may institute guidelines to foster innovation. Blockchain technology and cryptocurrency are also embraced in Eastern Kenya, Zimbabwe and the Western state of Nigeria.

 

 Picture Credit: Coinjournal

 

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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The Benefits of the Blockchain Technology to Africa

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The Blockchain technology is one of the hottest and most intriguing technologies currently in demand in the market. The rise of the technology is similar to that of the internet. The blockchain technology has the potential to cause a disruption across multiple industries. It is secure, makes processes more democratic, efficient and transparent. The technology has been embraced by African entrepreneurs, startup companies and governments like Kenya, South Africa and Ethiopia have identified the technology as a revolution. The technology has the ability to transform the developing continent and processes numerous benefits to the continent.

The benefits were better elucidated by Chris Maurice, the CEO of Yellowcard a decentralised gift card that allows you purchase cryptocurrencies. While speaking on the topic, “the general advantages of the blockchain”, he explains his thoughts on the potential the technology has to improve services in the continent. Here are some benefits of the technology to Africa:

Trustless Exchange
Cryptocurrencies makes the exchange of goods and services easier. Before now, it was difficult for  two parties to make an exchange without the oversight or intermediation of a third party. Banks for instance keep ripping people off with outrageous bank charges, making it difficult to carry out transaction without incurring a huge amount, beneficiary to the banks. Chris explains, “I think, one of the things the blockchain can do is to remove third parties and drive down cost for  the average person.”

Lower Transaction Costs

Chris explained that at one time he was at the bank for a specific reason when he noticed that the Kenyan man trying to send $200 to his family in Kenya but he was charged $100. But these third party intermediaries and overhead costs for exchanging assets are drastically reduced by using blockchain solutions.

Empower its Users
Instead of having the bank control your information and transactions users control these data as they are visible in their wallets. Also, by investing in cryptocurrencies, Africans have been able to change their life and situations. For instance, Eat BCH organised a charity by providing food for the people of Sudan. Also, so many Blockchain solutions and startups are helping individuals across Africa change their life.

Faster Transactions
Cross border transactions can be tasking. If someone was to receive a particular amount of money from the US, it could take a while and also incur some extra charges. But Blockchain transactions have lessened remittance problems to the African continent. Chris had a suggestion as he advises banks saying, “start supporting these currencies and the solutions provided by these currencies.”

 

 

 

 

 

What other benefit of the blockchain to Africa can you name? 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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Imports and Exports Trade Gets Blockchain Solution

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Abu-dhabi

It’s no news that the government of Abu Dhabi has reiterated several times of moving all existing government operations to the blockchain from 2022. The latest news coming out of the Arabian country is the trading sector, as it has begun the use of blockchain to conduct its transactions.

Maqta Gateway has developed and implemented its own blockchain solution for international logistics and trade. ConstructionMaqta Gateway which is a wholly owned subsidiary of maritime industry developer Abu Dhabi Ports. This feat would be the first of its kinds as it transcends to a paperless real-time tracking which in turn would save time, efforts and paperwork.

Developed by the Digital Innovation Lab of Maqta Gateway, the blockchain was field tested with strategic customers of Abu Dhabi Ports prior to launch and will see a commercial rollout to freight forwarders and their customers initially.

The platform is designed to safely encrypt and secure all documents essential for documentation of cargo. After the technology has been tested, it will then be offered to the rest of the trade community as a ‘complementary tool’ alongside the current Maqta’s Port Community System, a move that will fast-track adoption.

[B]lockchain is a key step in the digitalization of trade,” said Dr. Noura Al Dhaheri, CEO of Maqta Gateway, adding:

The blockchain solution was developed to bridge the gap between exporters and importers in an industry that is notoriously averse to digitization and change by reducing the need for manual paperwork, communication and physical visits with faster, real-time information exchanges over a decentralized ledger.
Through Silsal, we will be offering the trade community secure and integrated access to blockchain technology, with the added value of cost and time savings through real-time track and trace, reduction in paperwork and ease in extracting vital information to receive live updates.

 

 

Would the Import and export trade sector  be able to depend on the blockchain for its cargo transportation? 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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South Africa’s Central Bank renames Cryptocurrency, ‘Cyber-Tokens’

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The South African Reserve Bank has deemed that virtual currencies do not meet the requirements to be called money and so they have named it “cyber-tokens”. The deputy Governor of the Reserve Bank Deputy, Francois Groepe explained the reason behind the bank’s decision saying, “We don’t use the term “cryptocurrency” because it doesn’t meet the requirements of money in the economic sense of the stable means of exchange, a unit of measure and a stable unit of value. We prefer to use the word ‘cyber-token’.”

The Governor of the Reserve Bank explained further, “We want to ensure or establish whether there is still compliance with the relevant financial surveillance or exchange-control regulations.” A fintech task force has been established to review the bank’s stance toward  developing a relevant policy framework and regulatory system.

  1. The Reserve Bank of South Africa is not the first bank to adopt a stance of skepticism towards cryptocurrencies as
    Central banks around the world have also done the same. The Reserve Bank of Zimbabwe (RBZ) had ordered all financial institutions to stop servicing cryptocurrency exchanges earlier this month. While the Governor of the Bank of England Governor,  Mark Carney declared in February that Bitcoin doesn’t meet the traditional definition of a currency and cannot be considered a legitimate currency. He explained that Bitcoin is neither a store of value nor a means of exchange.

 

 

What do you think about the name “cyber tokens”? Share your opinion with us in the comment section below.
Image credit: Businesstech
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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