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Cryptocurrencies and its usage in Africa

Cryptocurrency is basically, a digital currency based on an innovative technology called the blockchain. Its users range from small businesses

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cryptocurrency,Cryptocurrencies and its usage in Africa

Cryptocurrency is basically, a digital currency based on an innovative technology called the blockchain. Its users range from small businesses to process payments, financial tech-based startups, and retail consumers that use it to send money across border and as an investment asset.

Since crypto assets like Bitcoin and its contemporaries, also known as altcoins, have been gaining high acceptability and in high use around the world for payments, investing and banking,

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Such that the total daily trading volume of bitcoin,which is the most popular cryptocurrency, is around $38.68 billion and market capitalization touching $123.12 billion on 4th April 2020.

Many Africans largely use cryptocurrencies like Ethereum, Ripple, Bitcoin, and Litecoin for applications in banking, making payment transfers

(READ MORE: Ikeja Hotels Plc proposes final dividend of 2 kobo)

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There are numerous causes for the surge of cryptocurrencies usage in the continent but unreliable local currencies could be a major factor among other rationales

6 features to look out for in a Cryptocurrency, Cryptocurrency: Discern investors’ goldmine , Cryptocurrencies and its usage in Africa

High uncertainty of economies in most part of Africa makes cryptocurrencies, a viable medium for asset management in lieu of storing its value in most cases

For Individuals and startups, it is a better approach in transferring funds to anyone in the world for paying remittance, suppliers, e-commerce shopping, to and from friends and family members based overseas, as it cost very low charges than many commercial banks in Africa which charge excessive fees in unstable currency markets and unreliable economic ecosystem.

Consequently, many Africans in urban areas have relative access to Internet access via mobile penetration and such platform have made the adoption of cryptocurrencies accessible to everyone through mobile

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Financial tech-based startups which are very disruptive in Africa is using crypto-assets for new technologies like mobile money.

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(READ MORE: Zoom’s founder reacts to security criticisms, says company was unprepared for demand surge)

They are also experimenting with Blockchain and cryptocurrencies in simplifying their processes across African borders and globally. Many of such startups have built blockchain apps, crypto exchanges, and money transfer services for the needs of the average African

Furthermore, a lot of African businesses and startups are now accepting and paying in bitcoins, XRP, bitcoin, bitcoin cash in reaching global suppliers and buyers.

This has been made easy for many Africans by a growing number of disruptive payment gateways and exchanges based in Africa and around the globe, they include Payfast, Gemini, Coinbase, Luno, Bitpay, Bitstamp, Bithumb, Binance, and many others

Gerald Cotten, Quadriga CX,Cryptocurrencies and its usage in Africa

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Luno Exchange a South African based company is the leading crypto exchange in Africa was established in 2013. It has more than a million customers in over 40 countries worldwide and it’s the first crypto exchange to be based in Africa with a presence in Nigeria and South Africa, offering ZAR/BTC, NGN/BTC crypto trading pairs.

(READ MORE: Polaris Bank to wave penalties on loan defaults due to Covid-19)

Meanwhile, there are some notable crypto-based transfer services such as London-based Kobocoin working in Nigeria.

Crypto assets  such as  Bitcoin was created  after the global recession of 2008 with an intention of a decentralized currency with transparent and controls to consumers advocating for low transaction cost, better security and easier access to its medium of choice

In  Nigeria is the largest ecosystem in Africa, its use and trading are still unregulated by the government. Nigeria’s central bank has declared cryptocurrencies as being non-legal tender.

However, the use of cryptocurrencies has not been banned entirely in Nigeria. It was reported that Nigeria’s Securities and Exchange Commission set up a committee in 2019 to create a framework for the regulation of digital assets and local crypto exchanges in Nigeria. 

Olumide Adesina a French-born Nigerian, an Investment Professional at Nairametrics Financial Advocates, owners of Nairametrics.com. Olumide Adesina is a certified Investment trader, with more than 14 years of working experience in Financial trading. His work experience covers trading commodity derivatives and analysis of global equities, currencies, commodities, cryptocurrencies, and Fixed Income instruments. A member of the Chartered Financial Analyst Society. You can follow Olumide on twitter @tokunboadesina and email via olumide.adesina@nairametrics.com.

1 Comment

1 Comment

  1. Bayei Daniel

    April 7, 2020 at 3:02 pm

    Educative Block chain news

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Business

Where to invest in May

Post-COVID-19 lockdown, Nigerians need to send their money on the right errands in May 2019, if they will not be caught napping the expected recession.  

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Money

This May, post-COVID-19 lockdown, Nigerians need to send their money on the right errands, if they don’t want to be caught napping during the anticipated recession.

When listing out assets that should make up the ideal portfolio in May 2020, founder of Nairametrics, Ugochukwu “Ugodre” Obi-Chukwu, explained that investors should consider choice stocks in the Nigerian and foreign stock exchanges, as well as investments in money market instruments where some decent profits can be made.

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Ugodre said this during the maiden edition of the Nairametrics Monthly Investment Guide Webinar.

According to him, this will also be the time to look into Agri-Tech investments, using crowdsourcing platforms, after which you can sit back and watch your funds grow over a time span of 5 months to a year.

According to him, it is also important to invest in foreign currencies and crypto-currencies to balance one’s portfolios.

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He noted that foreign direct investments have reduced over the last couple of years due to reduced trust in Nigeria’s economic policies, and the desire of foreign investors to cash out their funds with ease. This also explains why portfolio investments grew by 38% in 2019.

He said, “Foreign investors love portfolio investments because when they put their money in, they can easily take it out as well.”

(READ MORE:   CrowdFunding: Who is qualified according to new SEC Guidelines)

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Finding the right stocks

On the stock market, he noted that quite some stocks improved in the month of April and could improve in the coming months. He listed 20 suggested shares, including six stocks which he described as COVID-19 proof.

Agritech,Errands you can send your money in May 2020  

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Dangote Sugar Refinery, May & Baker Nigeria Plc, GSK, Neimeth International Pharm, Nestle Nigeria, and Cadbury Nigeria Plc are fast-moving consumer goods companies that are expected to be resistant to pressure from the pandemic.

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He advised investors to track stocks that are liquid, have good financials and good corporate governance, in order to limit risks borne by investors. Valuation of the shares, he said, could be done by comparing stock value and earnings per share.

Working around cryptocurrency volatility 

While making a presentation on “Why Bitcoin should be in your portfolio,” Yele Badamosi, CEO of Bundle stated that foremost cryptocurrency, Bitcoin, had maintained a steady appreciation over the last decade giving investors high yields.

Although the market is highly speculative and unregulated, its high returns and high risk indicate that investors with high-risk appetites could find the market more attractive.

To avoid being on the wrong side, he advised users to consider time-based rebalancing, or tolerance rebalancing to reduce risks and rebalance one’s portfolio.

(READ MORE: AfCFTA delay: A bane to Africa’s $3.4 trillion economic bloc)

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“There are reputable people in the space, but it is important to do your research, start small, and buy regularly. Be wary of get-rich-schemes and unrealistic guaranteed returns,” he advised.  cryptocurrency,Cryptocurrencies and its usage in Africa, Errands you can send your money in May 2020  

 

With applications like Bundle Africa on Google Play Store, buying cryptocurrencies is as easy as selecting the buy button and having it saved in your bundle wallet.

What to expect in Q2 2020

According to Wale, an economist, who also spoke at the webinar, the demand for crude oil will remain low as several countries and businesses are still in lockdown, even though OPEC has cut down production.

Interest rates may remain low, though, despite this, Nigerian business entrepreneurs cannot expect single-digit interest rates.

Foreign reserve and government reserves will remain under pressure in the coming months. The World Bank says that this is the worst year so far, going back to the great depression and this is what I think as well. This is probably going to be the worst economic crisis we have seen,” Wale said.

He added that with the exception of industries in the Healthcare sector, telco companies, digital technology companies, and food producers, other sectors could very well expect a big hit.

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Business

Why risk your life when you can bank with V by VFD (VBank or V)

Unlike other apps that are laced with either unbidden and hidden charges, V is free, as there are no charges for customers whether they are transferring money to another customer of V or another bank.

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VFD MFB closes gap with bank customers, launches new app, Why risk your life when you can bank with V by VFD (VBank or V)

The recent lifting of the lockdown has seen Nigerians rush to the banks to execute banking transactions that they have missed in the last five weeks.

Saying that this action or mis-action contravenes the physical distancing preached by the health agencies and government, is only stating the obvious. By doing this, they endanger themselves, and other family members whom they return to after their day at the bank.
But what if it was possible to do all your banking from your phone?

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V to the rescue
V disrupted the banking industry when earlier this year, it launched a highly optimized virtual bank app that enables users to carry out all banking transactions with ease and from their phones.
Users are able to create and set up a bank account with the app within 5 minutes and start carrying out transactions immediately.
Of course it doesn’t matter if you already have an account with the traditional banks. There’s always room for pleasant disruptions, aren’t there?

What they offer
VBank was launched as Nigeria’s first fully virtual bank to close the gap which hitherto existed between established traditional banks and their customers. That means there are no barriers between the bank and its teeming customers and potential customers.
Unlike other apps that are laced with either unbidden and hidden charges, V is free, as there are no charges for customers whether they are transferring money to another customer of V or another bank.

(READ MORE: VFD Group meets nutritional needs of residents of Olowogbowo community)

According to Azubike Emodi, MD/CEO, VFD Microfinance Bank, experts behind V are taking a consumer-centric approach with an aggressive feedback collection mechanism to build an app that meets the objectives of the customer.
The app, which is available for download on App store and google playstore allows users to monitor expenses and income, categorize budgets, and set spending limits. V is available to download by searching for “V by VFD” on App Store and Google Play store.

Why risk your life when you can bank with V by VFD (VBank or V)
What else could one ask for in a bank?
Another landmark feature of V is referral functionality (Veelage), which is also connected to monthly financial reward. It allows interested users of V to earn income and advance though the V community simply by getting account holders signed up with a unique ID and maintaining an average balance.

About this unique feature, Olukunle Salami, Business Performance Manager, VFD Group Plc would say that It is a 2-way value proposition that ensures individuals can earn consistently for several months beyond the initial referral point.

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Whoever guessed that we could earn from our bank?

 

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Business

Total Health Trust Provides Covid-19 Relief for Healthcare Providers in Nigeria

Total Health Trust Limited is playing a leading role in the response through its strategic collaboration with healthcare providers

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With rising costs and operational challenges due to the Covid-19 pandemic, this relief aims to support the scheme’s healthcare providers across the country.

As Nigeria continues its fight against the COVID-19 pandemic, Total Health Trust Limited (THT), a member of the Liberty Group, is playing a leading role in the response through its strategic collaboration with healthcare providers and their delivery of quality health care services in the country.

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THT has created a COVID-19 relief initiative for its network of healthcare providers to help ensure that Nigerians continue to have access to the healthcare they need during this challenging time. Through this initiative, THT is supporting healthcare providers to mitigate the impact of the epidemic by covering the cost of protective disposable equipment, such as masks and gloves, for consultations, as well as technical support for exposure to COVID-19 related cases.

In a statement recently released by THT, Nigeria’s leading Health Maintenance Organisation, the CEO Kieran Godden applauded the intensive efforts of healthcare professionals in curtailing the spread of the virus. “We at Total Health Trust, and indeed the whole country, remain very thankful to our health professionals, the NCDC and the State Ministries of Health for the immense and co-ordinated role they continue to play in ensuring that the country records ongoing success in the fight against this pandemic” he said.

“At Total Health Trust, we are concerned about the well-being of healthcare providers and the risks they face to ensure a healthier Nigeria. We understand their concerns in managing their own exposure to suspected Covid-19 cases, while providing medical care to citizens. As such, we are focusing our efforts on providing the necessary protection in the fight against COVID-19.”

“Furthermore, our commitment to delivering the highest level of support to our network of healthcare providers continues, especially at a time when their operations and needs are quickly changing.” said Godden .

“As a responsible corporate organisation, with a purpose to make Nigeria healthier, we are contributing to the fight against the virus by empowering our healthcare centres across Nigeria to continue delivering essential health and wellbeing services. We urge other corporate organisations and sector leaders to play their part as we overcome this disease together as a nation” he added.

(READ MORE: Aliko Dangote donates mobile COVID-19 testing lab to Kano State)

About Total Health Trust Limited

Total Health Trust (THT), a member of the Liberty Group, is a proudly Nigerian company with a pan-African foot print working to make Nigeria healthier. We are the leading Health Maintenance Organization (HMO) dedicated to serving SMEs, corporates and multinationals in Nigeria. With a demonstrated track record of providing affordable and reliable healthcare services and solutions of more than 18 years , we understand healthcare and know the needs of those we serve. Our pan-African footprint enables us to leverage world class solutions together with local expertise as well as a network of over 7 000 healthcare providers to deliver better health care results.

The organisation has offices in all geopolitical zones of the country and is headquartered in Lagos.

www.totalhealthtrust.com

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