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Making Bitcoin Legal Tender In Africa: How CAR Can Find Financial Freedom

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Bitcoin advocates have visited the Central African Republic and offered advice on how the country can best adopt BTC as legal tender.

The Central African Republic (CAR) shocked the world when its president announced that the country had adopted bitcoin as legal currency.

While some assumed that another nation would eventually follow the steps of El Salvador, which last year became the first country in the world to declare bitcoin a lawful currency, most didn’t expect this small African nation to be the one to follow suit.

But several factors may make the CAR a logical destination for bitcoin adoption. The CAR has one of the lowest gross domestic products (GDPs) in the world. Its population, for the most part, is kept outside of the financial system and unwillingly shielded from technological developments like smartphones and the internet.

Intrigued by the conditions of the second country in the world to adopt bitcoin as formally-recognized money, a cohort of Bitcoin experts and enthusiasts, calling itself the Bitcoin Delegation, flew to the Central African Republic to understand more about the situation on the ground and to see how it could help enlighten CAR officials on ways to leverage Bitcoin for good.

The delegation is composed of Alex Gladstein, head of strategy at the Human Rights Foundation; Stacy Herbert, CEO of El Zonte Capital; Samson Mow, CEO of JAN3; Fodé Diop, CEO of the Bitcoin Developers Academy; Nicolas Burtey, CEO of Galoy; Noor El Bawab, director of partnerships at Galoy; Sebastien Gouspillou, CEO of BitBlock Data Center; Richard Détente, CEO of Détente Coopération; David Oren, co-founder of Solarly; Jean-Christophe Busnel, organizer of Surfin’Bitcoin and StackinSat; Josselin Tonnellier, co-founder of Surfin’Bitcoin and StackinSat; Gloire Wanzavalere, co-founder of Kiveclair and Africa Bitcoin Conference; Gilles Cadignan, CEO of Woleet; Jeff Gallas, CEO of Fulmo; and Lionel Jeannerat, CEO of PVHIstoire.

However, only seven traveled to the CAR: Burtey, El Bawab, Gouspillou, Oren, Busnel, Cadignan and Wanzavalere.

Burtey, CEO of Bitcoin banking software company Galoy, the developers of the Lightning wallet utilized by El Salvador’s Bitcoin Beach community, spoke with Bitcoin Magazine to share the findings of the group’s recent trip to the Central African Republic.

A Lack Of Infrastructure

“The first thing that is striking is that there is no infrastructure in the country,” Burtey said. “Meaning that there is barely electricity or internet in the country, even if you’re in the capital city.”

As of 2009, less than 1% of the CAR population had access to banking services, according to a study by the International Monetary Fund (IMF). By 2017, account ownership at a financial institution or with a mobile-money-service provider was 13.75% of the population aged 15 years or more, per World Bank data. For comparison, the percentage of El Salvador’s population with access to the banking system was around 30% that year, per World Bank data.

Also according to the World Bank, the Central African Republic’s population has precarious access to electricity and internet. As of 2020, only 15% of the population had access to electrical power in the country and 10% used the internet. When it comes to mobile cellular subscriptions, only 38 in 100 people in the CAR had one as of 2020. Internet access is even worse when considering fixed broadband access — the country sees only 0.01 per 100 people with a subscription to such a service.

While some marginalized communities have been able to fight through adversity and leverage bitcoin for financial empowerment, a nation-wide adoption of the P2P currency depends on at least some minimal infrastructure.

Notably, satellite-powered solutions such as Elon Musk’s Starlink could aid the CAR in increasing its internet access. Musk recently flew to Brazil to launch the service in the Amazon rainforest, a push to increase access to internet connection in that rural and isolated area.

Bitcoin infrastructure company Blockstream also provides satellite-based solutions, specifically geared toward Bitcoin. Its Blockstream Satellite broadcasts the Bitcoin blockchain around the world 24/7 for free, protecting against network interruptions and providing areas without reliable internet connections with the opportunity to use Bitcoin. However, receiver equipment costs could be a barrier for the CAR.

A Lack Of Understanding

In addition to a lack of infrastructure in the country, there is also a deficit of proper understanding of Bitcoin.

Government officials — and the population at large — don’t yet grasp the power of Bitcoin. It seems only the CAR president, Faustin-Archange Touadéra, really possesses knowledge about the peer-to-peer currency, a phenomena that has led the nation to effectively put the cart before the horse.

“My understanding is that the president is the one who decided to adopt Bitcoin,” Burtey told Bitcoin Magazine. “He has a PhD in mathematics with a focus on cryptography. But many other members of the government, pretty much everyone, don’t really understand the difference between ‘crypto’ and Bitcoin.”

Much of the Bitcoin Delegation’s work was in improving that lack of basic understanding. Burtey explained to Bitcoin Magazine that in its conversations with government officials, the group attempted to demonstrate why the nation would be better off focusing on Bitcoin alone instead of embarking on the novel, esoteric use cases promised by tokens and “crypto.”

“Hearing from us, they have heard a different way to go forward with Bitcoin adoption,” Burtey said when commenting on the Sango project, an initiative by the CAR government to lure crypto investors to the country.

Sango was announced in late May, before the Bitcoin Delegation stepped foot in the CAR. Sango seeks to “pave the way to a digital future of endless possibilities,” per its webpage, though the project conflates bitcoin initiatives with NFTs and metaverse pilots.

“I attribute this to the fact that this is all new to [CAR officials] and they see all of these possibilities,” Burtey said. “Every time someone mentions something to them, they say, ‘Oh yeah, that’s a good idea.’”

The people Burtey is referring to there are foreigners from the cryptocurrency industry who have been to the country. The Galoy CEO said he believes the Bitcoin Delegation was the first group of Bitcoin-only advocates to arrive in the country with an agenda of helping the government and the people adopt BTC, with some crypto-related delegates having visited the CAR before them.

The CAR population has not only been kept in the dark regarding Bitcoin, but it is further held back by the lack of proper conditions for its adoption to flourish. While it catches up, the country could start benefiting from the P2P currency before those issues are resolved in at least one way: through exports.

A Lack Of Monetary Freedom

Being under the CFA franc system, huge hurdles exist for the Central African Republic to be able to sell its natural resources to foreign nations.

According to the IMF, the CFA franc zone consists of 14 nations in sub-Saharan Africa. Eight countries comprise the West African Economic and Monetary Union, while six make up the Central African Economic and Monetary Union. The CAR is part of the latter.

All of the 14 nations in the zone, of which only two were not French colonies, adopt the CFA franc as their official currency.

As explained by Gladstein in his essay “Fighting Monetary Colonialism With Open-Source Code,” France gets preferred treatment over any other nation looking to buy exports from African countries in the CFA system:

“The most surprising part, perhaps, is the special privilege of first right of refusal on imports and exports. If you are a Malian cotton producer, you must first offer your goods to France, before you go to the international markets. Or if you are in Benin and want to build a new infrastructure project, you must consider French bids, before others. This has historically meant that France has been able to access cheaper-than-market goods from its former colonies, and sell its own goods and services for higher-than-market prices.”

In theory, Bitcoin could provide a way out of such monetary colonialism. In selling its natural resources for BTC, the CAR could bypass the hurdles and bureaucracies intrinsic to the CFA system. It could be a first step toward a more sovereign nation in Central Africa.

Bitcoin Delegation Shares How CAR Could ‘Fix This’ With Bitcoin

The visit of the Bitcoin Delegation to the Central African Republic culminated in a report sent to the country’s officials earlier this month detailing the findings of the group as well as its recommendations for a better and more effective adoption of bitcoin. Bitcoin Magazine obtained a copy of the report.

Focus On Bitcoin

The first recommendation made by the delegation, as previously mentioned in the article, was for a sole focus on Bitcoin instead of embarking on adopting multiple cryptocurrencies simultaneously.

The Bitcoin Delegation argues that by choosing only Bitcoin, adoption would be facilitated across the country and citizens could rest assured that the rules governing their newly-acquired money would not change.

“Choosing a cryptocurrency whose rules will not change overnight, under the influence of a person, a foundation, or a political organization, is reassuring as a legal tender,” the report reads. “Such a scenario is conceivable for most other alt-coins, if not all, whose governance rests in the hands of one or more founders or a foundation. In reality, Bitcoin is the only crypto asset that doesn’t follow this rule.”

In truth, many crypto projects have suffered from quasi-decentralization to date. The Ethereum network, for one, in what became known as the DAO Hack, rolled back chain state after an exploit was discovered, resulting in a hard fork and the creation of Ethereum Classic.

Ethereum itself also had a premine — when coins are made available to select investors before being offered to the open market through mining — a reality that many cryptocurrencies endure today. It can hence be argued that only Bitcoin has had a fair distribution of coins, as Satoshi Nakamoto themselves earned their BTC through mining.

“Hundreds of crypto projects disappear every year when Bitcoin continues to prove its ability to withstand any test, thanks to its high level of decentralization,” the Bitcoin Delegation wrote. “Focusing on Bitcoin, and only Bitcoin, will help avoid all the pitfalls of the crypto industry, and will allow people to stay away from the thousands of fraudulent projects.”

“Not focusing on Bitcoin alone will slow the population’s adoption process, or could even make it fail,” the delegation concludes.

Buying And Selling Bitcoin

In its second recommendation, the Bitcoin Delegation focused on an important aspect of bitcoin adoption: on- and off-ramps.

“Buying and selling bitcoin will be a decisive phase of widespread adoption,” the report states. “The user should not feel imprisoned by the currency and should be able to convert it into well-known cash quickly.”

In order to achieve this goal, the delegation suggests that the CAR plugs bitcoin into existing, popular payment models such as mobile credit retailers. According to the report, there are about 12,000 mobile credit retailers in the Central African country, which can be a powerful tool for an enhanced buying and selling experience for the population.

The delegation also recommended the deployment of Bitcoin ATMs in the country’s main cities, preferably in secure locations such as hotels.

Lightning Network

While the second suggestion by the delegation focused on ensuring an ability to exchange fiat money for bitcoin and vice versa, the third seeks to enable the usage of BTC for payments in and of itself.

The Bitcoin Delegation explained that Lightning, Bitcoin’s overlay network for cheap and fast payments, was the key technology that allowed El Salvador to feasibly utilize bitcoin for everyday transactions. Likewise, it is critical that the CAR adopts the network for a better usage experience.

“Lightning aims to enable fast transactions and solve Bitcoin’s scaling problem by dramatically lowering transaction costs,” per the report. “The deployment of Lightning nodes within CAR will ensure the sovereignty of payments, and the uncensored use of the network.”

Bitcoin Mining

As citizens start to buy and sell bitcoin as well as use it for payments, the Bitcoin Delegation envisions a way for the country itself to start profiting from Bitcoin: mining.

“The Central African Republic has abundant sources of energy. According to our sources, the hydroelectric potential could create an installed capacity of 700 to 2,000 MW [megawatts],” the report states. “Several hydropower plant projects exist in the drawers at Bangui, but unfortunately, they have never come to fruition due to a lack of financing.”

The delegation argues that the country could leverage bitcoin mining “as a subsidy” to tap into that underexploited clean energy potential.

An engineering team of Gouspillou’s company will offer “full technical and strategic support” for the CAR to carry out such a bitcoin mining project. The report also calls on those interested in supporting the initiative to reach out to Gouspillou and find ways they could help.

Education

More importantly than having the tools to use is knowing how to use them. With that in mind, the fifth recommendation made by the Bitcoin Delegation surfaces the area of Bitcoin education.

“A considerable portion of the Central African population does not yet understand what bitcoin is and its merits as the country’s legal tender,” the report reads. “The success of the legalization of bitcoin cannot be achieved without the involvement of government, civil society and academia. For this to happen, it is essential to train the population to understand the added value of Bitcoin for the prosperity of the Central African Republic.”

The delegation recommended that CAR officials work together with the Bitcoin community to establish three educational programs in the country: government, civil society and university initiatives.

On the governmental side, the group suggested the launch of “an official awareness program among civil servants, companies and the population explaining the reasons for the adoption, its advantages and disadvantages, handling and usage of a bitcoin wallet.”

As for the civil society program, the delegation argued that facilitating the establishment and funding of non-profit organizations that seek to educate the population on Bitcoin could yield much value to the country. Moreover, the cohort recommended that a Bitcoin embassy be formed in the CAR’s capital to carry out workshops explaining the use of Bitcoin to the population and serve as a hub for Bitcoiners across the world looking to support the country’s efforts.

“This initiative can then be replicated across other cities,” the report adds. “We also recommend holding a one- to a two-day conference in Bangui to train the population and business owners. This conference should be available on social networks to allow people to get information for free.”

Finally, the Bitcoin Delegation suggested that universities with reasonable internet access should develop a program focused on Bitcoin and Lightning. The course could help train the youth to build and develop the economy of their own country, enable research and innovation, open new job opportunities, and avoid the brain drain of Central African youth.

Sango Wallet

Galoy offered to support the development of the Sango wallet, piggybacking off of its experience in empowering the adoption of bitcoin at Bitcoin Beach in El Salvador.

“At the heart of the plan, the wallet will be the key element to send and receive bitcoin, whether on-chain or Lightning; instantly convert bitcoin into CFA Franc, and vice versa, at the user’s request; teach users through a paid learning feature to speed up adoption; implement a robust security system to prevent misuse or theft of money held in the wallet,” per the report.

Taxation

“Taxation is the main lever that public authorities benefit from to encourage the development of economic activity and adoption by the population,” the delegation wrote.

In the context of the adoption of bitcoin in the Central African Republic, the Bitcoin Delegation suggested that a clear and attractive tax system should be developed, as well as a reduction on the taxation on smartphones.

Government Bonds

In its eighth and final recommendation, the Bitcoin Delegation advocated for the issuance of government bonds on the Liquid Network, a Bitcoin sidechain that enables issuance of digital assets, similar to El Salvador’s Bitcoin Bonds.

“These bonds would help finance the construction of the region’s solar/hydro energy infrastructure and bitcoin mining,” per the report. “The mining infrastructure would also benefit the Central African Republic with a source of revenue.”

The delegation suggested that CAR officials meet with Mow, the architect of El Salvador’s Bitcoin bonds, to flesh out a plan.

The Road To Financial Freedom

Given the situation on the ground in the CAR, it is clear that much work needs to be done before the population can start benefiting from bitcoin adoption.

Infrastructure is desperately needed in the African nation, and as such, government officials and the private sector will need to join forces to create the conditions for the P2P monetary network to properly flourish.

Nevertheless, the CAR can begin experimenting with the technology right away to bypass decades-old exports limitations and attract foreign investment into the country. Its natural resources can be a powerful anchor on which officials can rely, seeking capital from abroad to nourish their land.

In truth, and as mentioned by the Bitcoin Delegation’s report, if the right strings are pulled Bitcoin can act as a backboning technology for these developments to occur. Bitcoin’s unique alignment of incentives through its network can bring different parties together as they each seek their own success. In this sense, Bitcoin can be a powerful tool to spark the light of transformation for the small nation — one block at a time.

Moreover, the Bitcoin Delegation’s playbook provides more than tips for the CAR; it puts forward a checklist that other communities and nations interested in financial freedom can leverage to use the P2P monetary network.

Similar to how Bitcoin Beach kickstarted the adoption of bitcoin in El Salvador, so can other grassroots developments around the world trigger more nation states recognizing the power of money outside of governmental control.

As sovereign nations such as the U.S. accrue the benefits of governing their own money, it is likely to be the low-income, underdeveloped countries that continue embracing Bitcoin — one after the other. And as that happens, the unfavored of today’s system could have a headstart in the next system, while developed countries will become the ones playing catch up.

Uganda Claims Exploration Surveys Discovered 31 Million Metric Tons of Gold

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Uganda Claims Exploration Surveys Discovered 31 Million Metric Tons of Gold

While gold is often considered a scarce asset, Uganda explained on Wednesday that recently conducted exploration surveys indicate that there’s roughly 31 million metric tons of gold ore waiting to be mined in the region. Moreover, a spokesperson from Uganda’s Ministry of Energy and Mineral Development said there’s an estimated 320,158 tonnes of refined gold available.

Uganda Claims the Country Has 31 Million Tonnes of Gold Ore — 320,158 Metric Tons of Refined Gold Is up for Prospect

During the last five years, the value of one ounce of fine gold has risen by 48% against the U.S. dollar. An ounce of gold’s spot market value tapped an all-time high this year at $2,060 per unit.

Today, an ounce of gold is $1,840 per unit and the spot market price is up around 0.48% during the past 30 days. Meanwhile, reports from Uganda show the country has discovered quite a bit of gold ore, and is looking to attract miners and investors.

On Wednesday, Solomon Muyita, a spokesperson for the Ministry of Energy and Mineral Development told Reuters that the country has found 31 million tonnes of ore by conducting a number of exploration surveys across the land.

The spokesperson further noted that 320,158 tonnes of refined gold could be mined immediately and a Chinese company called Wagagai Mining is already planning to mine in the area. Wagagai just got its gold production license in March 2022, and it set up a 21-year mining lease with officials from the Busia district in the eastern region of Uganda.

Muyita said most of the ore was found in Karamoja, Busia District, alongside central and western areas as well. Wagagai is set up in Mawero Parish, Butebo sub-county, and it is estimated that there’s 12.5 metric tons of mineable refined gold at the location.

China’s Wagagai Mining to Start Production Soon — Surprise Deposits Discovered Every Year

Muyita remarked that Wagagai will start production this year and the company has invested $200 million so far into the construction of the refining station. Now gold’s scarcity, however, also stems from the difficulty of mining the ore, and while Muyita claims there’s 320,158 metric tons of gold, there’s only 2,500 to 3,000 mined each year.

Moreover, South Africa is the world’s largest producer and but there’s also significant gold mining happening in the U.S., Canada, Australia, Russia, and China. The precious metal’s scarcity proposition however is constantly put to the test by surprise ore deposits found worldwide.

For instance, at the end of October 2020, Bitcoin.com’s newsdesk reported on a surprise find of approximately 40 million troy ounces of gold in Russia’s Siberian region. In August 2020, a historical region of Central Europe, situated in Poland and called Silesia, discovered massive gold deposits in the area.

In March 2021, a Yemeni freelance journalist based in the capital Sana’a, Ahmad Algohbary, reported on a colossal mountain of gold discovered in the Congo. While the reports noted that the Congo mountain of gold had no confirmed estimates as to how much gold was discovered, it was said that artisan miners were smuggling the gold.

Smuggling gold is very prominent in Africa according to a United Nations (UN) report that says production in the Congo region “continues to be systematically underreported.” This means that while statistics say there’s only 2,500 to 3,000 metric tons mined each year, a significant amount of mined gold may be entering the market that’s not being reported.

What do you think about the 31 million metric tons of gold found in Uganda? Let us know what you think about this subject in the comments section below.

Bitcoin Mining Could Be The Answer To Nigeria’s Inflationary Crisis

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Renewable energy potential, wide adoption and deflationary fiat make Nigeria the perfect home for extensive bitcoin mining operations.

This is an opinion editorial by Heritage Falodun, a software engineer and co-host of the “Bitcoin In Nigeria” podcast.

The aim of this work is to give a brief, concise but insightful elucidation around the economic meltdown and environmental degradation in Nigeria, while also proposing Bitcoin mining through renewable energy sources as a solution to those problems.

This document analyzes and showcases the complexity around electrical energy sources that have been explored, and the impact of such exploration to the country’s ecosystem.

Observed available renewable energy sources should be explored for mining Bitcoin in Nigeria in order to spur the nation’s growth economically, and concurrently to serve as a reference point for curbing environmental degradation and climatic havoc caused by carbon emissions from fossil fuels and gas.

Introduction

Bitcoin mining is the process of creating new digital tokens and adding past transaction records to a public blockchain ledger.

Bitcoin mining requires sophisticated hardware, specialized computers called ASIC miners for solving complex math problems, and as a reward, miners earn new bitcoin and collect transaction fees on every valid transaction in the block, which is what has been instrumental in keeping the Bitcoin network active. Miners can be curious individuals or professional mining firms. The bitcoin mining process is ultimately a proof-of-work consensus mechanism.

The first miner to solve a cryptographic puzzle receives bitcoin for expending computing energy and validating the transaction “block.” Bitcoin’s pseudonymous founder, Satoshi Nakamoto, originally implemented a limit of one megabyte of transaction data per block.

The inventor of Bitcoin also set a hard limit on bitcoin’s supply at 21 million bitcoin. Miners have mined more than 90% of the available bitcoin. Every four years, the number of bitcoin awarded for solving new blocks is halved, which is a process known as Bitcoin halving.

This is a feature that is widely believed to corroborate the principles of economics and scarcity. Based on this schedule, it could be a few decades before the final bitcoin is mined. However, these hardware devices that enable Bitcoin mining must be powered by electricity and the mode of generating this electrical energy from different energy sources without causing environmental havoc and climatic degradation is of utmost importance. Generating electrical energy from green and renewable energy sources has been the best option for the Bitcoin mining ecosystem globally.

A study by CoinShares estimated that, as of 2019, at least 74% of cryptocurrency’s global energy consumption came from renewables, mostly in the form of relatively cheap, Chinese hydropower.

Bitcoin being a global, decentralized currency which is a censorship-resistant, deflationary asset, as opposed to the inflationary Nigerian naira, means Bitcoin will be the best bet for revitalizing Nigeria’s economy if consideration are put in place to initiate Bitcoin mining investment powered by the various, unexplored renewable and green energy sources available in Nigeria, one of the leading countries in global Bitcoin adoption.

An Overview Of Nigeria’s Economy

Nigeria’s economy remains the biggest economy in Africa, despite the challenges that have been dwindling its growth over the years.

According to Heritage.org:

“Nigeria’s economic freedom score is 54.4, making its economy the 124th freest in the 2022 Index. Nigeria is ranked 23rd among 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional average but below the world average. In the long-term, Nigeria GDP is projected to trend around 445.00 USD Billion in 2022 and 450.00 USD Billion in 2023, according to our econometric models. The gross domestic product (GDP) measures national income and output for a given country’s economy. Nigeria gdp for 2020 was $432.29B, a 3.53% decline from 2019. Nigeria gdp for 2017 was $375.75B, a 7.14% decline from 2016.” 

However, inflation has been eating deep into the Nigeria economic market, driving the cost of food there up by nearly 26% over the last year.

Nigeria Has A Carbon Emission Problem

Fixing carbon emission hasn’t played out as a priority for the government agenda in Nigeria yet, as demonstrated by the increasing levels of carbon emissions there. Carbon dioxide emissions stem from the burning of fossil fuels. They include carbon dioxide produced during the consumption of solid, liquid and gas fuels and gas flaring. Nigeria’s carbon (CO2) emissions for 2018 was 130,670 kilotons (kt), a 15.72% increase from 2017.

Can Nigeria Take Advantage Of Renewable Energy Sources?

Nigeria has the required infrastructure, climate, expertise, as well as human capital to take advantage of renewable energy sources.

“In 2018, the share of energy derived from renewable energy sources in primary energy consumption amounted to around 75.4 percent in Nigeria,” according to Statista. “It is projected that the renewable energy share of total final energy consumption in Nigeria will reach 86.4 percent by 2025.”

Unexplored Energy Sources For Nigeria

Solar Energy: According to Solynta Energy, there is an average of 1,885 hours of sunlight per year, with an average of five hours and nine minutes of sunlight per day in Lagos. It is sunny for 43% of daylight hours there.

“Solar panels are known to work(although dependent on the design) with an average peak sunlight hour of 3.5 hrs,” per Solynta, thus indicating that solar power would be a feasible energy source in a Nigerian city like Laos.

Hydroelectric Energy: To my knowledge, the only major rivers that are being explored for hydroelectric power in Nigeria are the Kanji, Shiroro, Niger and Benue. According to recent research, 32 exploitable hydropower sites have been observed in Nigeria with a total installed capacity of 12.22 gigawatts (GW).

But Nigeria is bestowed with many rivers and natural falls that could favor the initiation of more hydropower systems.

Explored Energy Sources For Nigeria

Electricity in Nigeria is generated through thermal and hydropower sources. Most electricity generation in Nigeria comes from fossil fuels, particularly gas, which makes up 86% of the capacity in Nigeria, with the remainder generated from hydropower sources.

A consistent increase in carbon emissions in Nigeria is likely.

Bitcoin Mining Powered By Renewable Energy Is The Future Of Nigeria

With the abundance of renewable energy sources in Nigeria, as explained above, Nigeria should consider mining Bitcoin with these energy sources.

Bitcoin ecosystem research released in January by the Bitcoin Mining Council stated that, in the fourth quarter of 2021, the worldwide Bitcoin mining sector was being powered by about 58.5% renewable energy. I believe that Nigeria shouldn’t be left out of this emerging market as it stands a chance of boosting its economy.

The mining data shows that a new hybrid model for Bitcoin mining has emerged. Bitcoin miners can easily buy energy from renewable energy providers when energy is abundant, or create a private structure and capital around generating electrical energy from green and renewable energies as part of their setup costs and implementation capital. In so doing, the miners are monetizing renewable assets that would have otherwise been dumped or ignored, while maintaining a generally high uptime and safe environment and contributing to the country’s economy.

Taking a look at an existing mining farm in Alberta, Canada, run by Hut 8 Mining, for example: The bitcoin generated from its first quarter 2022 mining rewards was 942 BTC. If similar mining farms were implemented across 36 locations in Nigeria — a reasonable number based on my research into locations where this would be feasible — that could yield some 33,912 BTC in one quarter if conditions were the same, worth about $712 million at the time of writing this.

Conclusion

Bitcoin being a deflationary currency which serves as the reward for mining makes it an investment source capable of boosting Nigeria’s internally-generated revenue with about $2.84 billion per year (based on the $712 million assumption from above, multiplied across four quarters), assuming the government taxed privately-owned Bitcoin mining farms.

But the mining farms must be powered by renewable and green energy sources such as solar energy and hydroelectric energy sources. This will be a perfect way of utilizing the possible electricity that could be generated from an average of 1,885 hours of sunlight per year in places like Laos. Hydroelectric power plants very frequently substitute power generation from fossil fuels, thus reducing issues like acid rain, carbon emissions and smog.

The unexplored, possible electrical energy that can be generated from hydro sources in Nigeria should be developed, and nation states with government-owned and privately-owned Bitcoin mining infrastructure, such as El Salvador, Canada and some parts of the United States, should be considered as reference points in this context.

This is a guest post by Heritage Falodun. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

How Can The Bitcoin Community Help Bring An End To The War In Ethiopia?

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Bitcoin’s attributes leave it well-positioned to help facilitate an end to a genocidal war in Ethiopia.

This is an opinion editorial by Michael Abraha, a contributor to Bitcoin Magazine.

As the world has quickly shifted its attention to Ukraine, the ongoing genocidal war in Tigray, Ethiopia, has continued for almost 17 months. This underreported war hasn’t seen much time in the mainstream media even though 500,000 people have died as a result of it. While CNN, BBC and Al Jazeera have all reported on this conflict for months, those reports have been silenced with the fear of going to war with Russia.

So why is it very important that the Bitcoin community gets involved? It has been confirmed that the Ethiopian government has intentionally blocked humanitarian aid from the Tigray region, cut off access to electricity, froze all banks in the region, and shut down telecommunication services throughout the 17 months. Approximately 5 million to 6 million people live in the Tigray region and 600,000 or more civilians have fled to Sudan to seek refuge. Getting involved is extremely urgent because more than 3 million people are facing famine due to the blockage of aid.

Outside of fundraising money, what could the Bitcoin community do to help end this conflict? With many celebrities and influencers from various industries in the Bitcoin community, it could be possible to get big names to speak out to raise awareness. Major celebrities like The Weeknd already have donated upward of $1 million in January 2021, but since then the war has not received the proper attention. The Bitcoin community must step in. With over $50 million in crypto donated to Ukraine in under a month, we can do the same and aid those in need in Ethiopia as well. Unfortunately, mainstream media outlets tend to ignore atrocities occurring in the developing world such as Yemen, Palestine and Myanmar — so it is our job in the Bitcoin community to bring awareness and aid to those suffering in underserved and ignored communities.

Unfortunately, there are some things to become aware of when researching content about this conflict. Since Tigray is a minority ethnic state of Ethiopia, the majority of Ethiopians have supported the government or remained silent about the war on the people of Tigray. As the war began, many Ethiopians justified the war to remove Tigray People’s Liberation Front (TPLF) leaders from power in Tigray, due to their war crimes committed in previous years. Although the previous government, the Ethiopian People’s Revolutionary Democratic Front (EPRDF), was a federation of all Ethiopians, many blame the leaders of the TPLF for creating havoc in the nation for more than 20 years. These claims have allowed Ethiopians to turn a blind eye to the current atrocities occurring in Tigray, and even claim that social media has spread fake news to ruin Ethiopia’s international presence. As the war has continued for 15 months, more recently a handful of Ethiopian influencers have spoken out against the conflict, but the majority has still remained silent or supported the government. I am mentioning this to note that when you look up content about Tigray, you will see comments and responses blaming the TPLF for the war, claiming that there isn’t genocide and even insults on people who are advocating for the people in Tigray. Be aware that there is an active counter-protest against the movement to aid those suffering in Tigray, Ethiopia.

How Can This Be Executed?

Short-Term Goals

First, raising awareness with influencers in the Bitcoin space will help bring awareness to our mission. Writing content within the space to advocate across platforms and ecosystems within the crypto space and researching methods on how Bitcoin can provide the best services for sending and receiving funds to Sudan and Tigray to combat the government closing all banks and cutting off electricity. Some examples of this are sending bitcoin offline such as Bitsms, which allows users to attach a BTC wallet to a cell phone number providing the opportunity to use SMS text to send transactions via radio satellite.

Once this research is done, we can test the method of sending bitcoin with goTenna’s physical antenna devices. Creating a huge buzz around building access and peace needs to occur simultaneously while funds are being allocated to those in need. There also needs to be a global campaign that aligns with the advocates in the diaspora. There needs to be partnering with NGOs run by those in the U.S. and Europe such as Omna Tigray, Tigray Action Committee, Tigray Disaster Relief Fund and many more. We can curate an online discussion (mini conference of multiple speakers) and a series of music festivals to continue raising awareness. Since major artists such as The Weeknd and Lil Baby have mentioned their concerns about the conflict in Tigray, Ethiopia, it would be accessible to be able to work with them and other musicians.

Long-Term Goals

Once enough funds are allocated, mission trips can be led to create food and aid distribution centers in Sudan’s refugee camps and in Tigray at internally displaced people (IDP) camps. These collaborations can be distributed with Omna Tigray, Tigray Emergency Relief Fund, and many other nonprofit organizations.

Bitcoin can also fuel the economy for Tigrayans in Ethiopia, refugee camps and within the diaspora. There is an alarming issue with banking in Tigray since the war began — the Ethiopian government has shut down all federal banks in the region. Alongside lack of electricity and internet services, citizens of Tigray are left to use black market distributions of cash being sent via Sudan. Wire transfers and all means of sending money have been blocked off, which is one of the main reasons why Bitcoin can provide access to the people.

The education system in Tigray has also been destroyed as primary schools and universities are now used to house IDPs; millions of students have stopped attending school for the last 18 months. Bitcoiners can donate books, computers, pencils and other supplies to refugees in Sudan to kickstart education in refugee camps as well as using offline education services such as Internet-in-a-Box. The Internet-in-a-Box is a device that allows users to download content and upload onto multiple computers, tablets and smartphones with no internet required. Devices like these are needed in the thousands alongside the equipment needed for students to use.

Overall, the use of Bitcoin to help end this crisis will not only force the diaspora to educate themselves on how to use Bitcoin, but will fuel other nations and states to do the same in the Horn of Africa. With bitcoin being adopted in various other countries in Africa, the situation in Tigray is a matter of do or die as families all around the world have struggled to send aid to their loved ones. As the Bitcoin community thrives on maintaining decentralization, it would be great to provide aid to millions of people struggling, especially since the international community has failed those in Tigray. Thirty years ago, USA for Africa teamed up with Michael Jackson and various other artists to sing, “We Are the World,” to aid those suffering drought in Ethiopia. Unfortunately, there was a war similar to what is currently occurring today that led to Tigray being blocked off from humanitarian aid. We must recreate these actions to end the current man-made famine and save lives, as well as helping those in need across the Horn of Africa. In the words of the late Michael Jackson, “There’s a choice we’re making. We’re saving our own lives. It’s true, we’ll make a better day, just you and me.”

This is a guest post by Michael Abraha. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

How Bitcoin Helps Solve Unemployment In Africa

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Bitcoin can facilitate economic growth and progress that would have never been possible under a fiat standard.

African youth make up the largest demographic of the continent and yet they suffer the most due to underrepresentation in the government. However, Bitcoin fixes this.

“The idea whose time has come” has unlocked the full potential of African youth who are set to not only contribute to hyperbitcoinization directly but most importantly make ends meet for their kin while thriving, not surviving.

P2P Trading

Peer-to-peer bitcoin trading is one avenue that African youth have embraced, thus creating a source of income. This is driven by number-go-up technology and the weak African currencies (compared to the United States dollar).

Platforms such as Paxful Peer go the extra mile to help people earn by onboarding their friends and acquaintances. Moreover, there are various resources to help everyone best learn how to trade.

Biashara

The Swahili word for business is biashara. Numerous businesses in Africa have been established by and for Africans to empower people on the continent to switch to bitcoin from fiat in the simplest manner possible.

African translators who are Bitcoin maximalists such as Sabeni have worked on translating Bitcoin literature for both Exonumia and BitcoinMtaani. As most Africans are at the very least bilingual, this is a great opportunity for many to get jobs with multiple projects.

BitcoinMtaani is one such platform that seeks to expedite Bitcoin education in Africa via native African languages like Swahili, Yoruba, Isizulu and Lingala. I have firsthand experience in Bitcoin creating jobs as I work full time on this platform thanks to my investors, one being GaloyMoney. Sponsors such as Coinkite are doing an incredible job in helping me on my mission to get Bitcoin education to Africans in the languages they primarily understand and communicate in on a daily basis.

Content Creation

There are very many talented African youth and young adults who have taken the time to learn about Bitcoin and thus have started creating content to educate the continent. Most of them were jobless or were overworked with the stress of their nine-to-five jobs thus have made a conscious decision to work full time to produce Bitcoin educational content. The best part is through multiple applications like Fountain App they can directly earn sats from their listeners and thus not depend on platforms such as YouTube, who could potentially deplatform them.

Artists

Traditionally most African artists have been disenfranchised by being locked out from the international art market. Bitcoin solves this as now physical art can simply be posted on social media by an African artist and a client on the other side of the world can pay in bitcoin.

Non-fungible tokens — “NFTs” — although looked down upon by hardcore Bitcoin maximalists are truly providing an avenue for African youth to sell art thus stack more sats while making ends meet.

Developers

Africans taking a leading role in development has been one of the avenues by which Bitcoin is directly solving the scourge of unemployment, especially among African youth who are the most affected.

Qala is the perfect example as it is a program specifically designed to train the next generation of African Bitcoin and Lightning developers.

The Bitcoin Developers Academy is a great project by Fodé Diop which is focused on teaching Africans how to build Bitcoin applications using the Rust programming language.

Philanthropy

Global philanthropic initiatives via Bitcoin in Africa have directly empowered various communities to adopt a Bitcoin standard. This not only creates employment in rural communities but taps into the minds of young children who will not be indoctrinated by the fiat-based legacy financial system, but will instead grow up knowing bitcoin is the only hard money in the world.

The Built With Bitcoin Foundation has built schools, water wells and water distribution filtration systems in various African countries including Kenya, Nigeria, Rwanda and South Africa. This has directly led to creating employment, improving living conditions in rural communities and introducing communities to the Bitcoin standard.

I had the privilege of welcoming the cofounder and director of the Built With Bitcoin Foundation on his visit to Kenya this year. I saw firsthand the positive change Ray Youssef’s (aka Yusuf) project has brought to the community in Makueni County, Kenya.

Farming To Stack Sats

In a rural community in Voi, Taita Taveta County in Kenya Mart Veeken has established a regenerative fashion production. This project is introducing the local community to sustainable cotton farming methods in arid conditions. The whole value chain until the final production of cotton products will be on site and the entire community is being onboarded to the Bitcoin standard.

Economic empowerment from the farmers being taught how to best utilize their land to the construction and running of the regenerative fashion production facility directly provides a lot of employment to the local community. This is a great example of a Bitcoin community-based project that has brought positive social and economic change to a marginalized rural community in Kenya.

I am personally planning a weeklong Bitcoin adoption tour for Voi Town with Veeken. Thanks to Bitcoiners such as Mags (Magdalena Gronowska) and the Coinkite team we will not only show the people how to buy bitcoin via Mpesa on Paxful but also how to safely store their bitcoin in a hardware wallet. This tour will see six unemployed youth from Nairobi County get a weeklong job onboarding others to the Bitcoin standard, earning while doing what they love.

Conclusion

Bitcoin is Africa’s sole solution to multiple problems that have plagued it for decades even after the mirage of independence our forefathers fought to the bitter death to attain.

Unemployment is one such scourge that Bitcoin is solving in real time.

Africa’s future is now bright thanks to this idea whose time has come. The youth who stand the most to benefit are extremely motivated to bring their talents and competencies to this space, thus ensuring Africa actively contributes towards hyperbitcoinization.

This is a guest post by Guantai Kathurima. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.