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Report: Cryptocurrency Can Potentially Complement Mobile Money Argues Kenyan Banker

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The CEO of one of Kenya’s biggest lenders has argued there is a possibility cryptocurrencies will complement mobile money in Africa but first, there is a need to convince regulators of their benefits.

African Regulators’ Stance on Crypto


Cryptocurrencies can potentially complement mobile money in Africa if regulators on the continent are made to change their perceptions of the digital currencies, the boss of one of Kenya’s biggest lenders has said. According to James Mwangi, CEO of Equity Group Holdings Plc, central banks first need to be convinced of the benefits of cryptocurrencies.

In remarks published by Bloomberg, Mwangi noted that most of the continent’s central banks have either banned the use of cryptocurrency like bitcoin or have imposed restrictions on its use. He noted, however, that a few countries have or are exploring ways to embrace cryptocurrencies.

According to Mwangi, adopting cryptocurrencies is also one way Africa can get ahead of other continents as far as embracing fourth industrial technologies is concerned.

“Africa will benefit substantially from leapfrogging on the fourth industrial technologies, and cryptocurrency is one of them,” Mwangi is quoted explaining.

Embracing Emerging Technologies


The support his argument, the CEO used the growth of mobile money transactions in Kenya as an example. According to Mwangi, mobile money transactions have since grown to a point where they now outpace hard currency transactions because Kenyan regulators were willing to try out new technology.

Mwangi also suggested that using emerging technologies like artificial intelligence could be the basis for the continent’s leapfrogging into the fourth industrial revolution.

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Report: Pakistan Can Generate $90 Million Annually if It Introduces a 15% Tax on Crypto Transactions

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Pakistan can generate tax revenues of at least $90 million each year if authorities impose a 15% tax on cryptocurrency transactions, an executive with a cryptocurrency exchange has said.

15% Crypto Tax

An executive with a Pakistani cryptocurrency exchange has said Islamabad can generate at least $90 million in tax revenues if authorities decide to levy a 15% tax on cryptocurrency transactions. The executive, Zeeshan Ahmed, the country general manager at Rain Financial Inc, claimed this would be possible if Pakistan adopts what one report calls “hard and fast regulations.”

In comments published by The International News, Ahmed claimed that Pakistan’s neighbor India and the United States are already getting billions of dollars in tax revenues. He said:

The US and India are collecting billions of dollars through a 30 percent tax on the profit earned from crypto trading. We can start with a 15 percent tax.

Role of Crypto in Pakistan’s Economy

Ahmed’s sentiments were echoed by his fellow executive, Aatiqa Lateef, the crypto exchange’s director of public policy. Speaking at the same event where attendees discussed the role of crypto assets in an economy, Lateef suggested his company is playing its part in helping to change regulators’ perception of cryptocurrencies.

“We are in constant touch with all regulators including SBP, PTA, FBR and others and will be ready to assist them,” explained Lateef. The director added that the Pakistani government has since set up committees to discuss different regulation scenarios. The committees are also expected to recommend policy options available.

Lateef, in the meantime, concedes that it could take between 12 and 18 months before the Pakistan government makes its decision. One of the reasons for this could be regulators’ lack of capacity or inability to police the crypto industry. However, with the assistance of cryptocurrency firms like Rain, Pakistan may overcome the challenges, Lateef said.

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Survey: Almost Three out of Four Argentinians Are Willing to Purchase Crypto for Investing or Saving Purposes

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Argentinians

A new survey, whose results were released earlier this week, has given more insight into how Argentinians view cryptocurrencies and how they might put them to use. The survey found out that eventually, almost three out of four citizens would purchase cryptocurrency to invest, or as a way of preserving buying power.

Argentinians Familiar With Crypto

A survey whose results were released on May 4, offers a clear panorama of the popularity of crypto in Argentina, and how Argentinians might be capable of using crypto for different purposes. The survey, which was carried out by Opinaia y Muchnik, two consulting offices, asked several crypto-related questions to a sample of 2,400 Argentinian citizens from all around the country, living at different economic levels.

On the issue of crypto popularity, the survey found that 90% of the citizens consulted had heard about cryptocurrencies before the survey. However, this popularity does not lead to operating with crypto directly. The survey also reported that only 38% have knowledge about the operation and the inner workings of crypto assets.

However, Argentinians are willing to use crypto in different ways if they have to. 74% of the surveyed stated they would buy and use cryptocurrencies either as investment assets or just to save part of their purchasing power.

State of Crypto in Argentina

The study dwelled on how citizens trusted cryptocurrencies when compared to other investment assets, such as stocks and bonds. In this sense, cryptocurrencies fared in the middle, below classic instruments such as the dollar, but over other instruments. Guido Moscoso, public opinion manager at Opinaia, summarized:

Cryptocurrencies have an average level of trust, similar to that of an investment fund or shares, but below more classic or entrenched forms such as the dollar, the fixed term, or Mercado Pago. But yes, they are well above the confidence put on bonds.

The survey, according to Moscoco, is a sign of the times, when Argentinians are very worried about the economic climate in the country and are studying different ways of saving their money in a highly inflationary environment. But he also explained that this interest is blocked by the high knowledge barrier that the average citizen faces when trying to enter the cryptocurrency world. Of the 74% of Argentinians that would be willing to purchase crypto assets, 49% stated that they would purchase them, but they don’t know how to do it.

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Uganda Central Bank Tells Licensed Entities to Stop Facilitating Crypto Transactions

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The Ugandan central bank has warned licensed entities and the public against facilitating crypto-related transactions as well as the practice of converting cryptocurrency into mobile money and vice versa. The central bank warned it will not hesitate to act against entities found to be in breach of the country’s laws.

No Entity Issued License to Trade Cryptos

The central bank in Uganda recently issued a statement reminding the public that no business is licensed to offer or facilitate cryptocurrency-related services. The statement warned licensed entities to end the practice of converting crypto to mobile money and vice versa.

According to a report in the Monitor, the warning — which came from Andrew Kawere, the director of payments at the Bank of Uganda (BOU) — comes less than three years after the country’s finance minister Matia Kasaija made similar remarks. In the report, Kawere is quoted reiterating the central bank’s position. He said:

“Bank of Uganda has noted press reports and adverts advising the public that they can covert cryptocurrencies into mobile money and vice versa. We are also aware that such a conversion cannot happen without the participation of the payment service providers and or payment system operators. This is to advise that [the] Bank of Uganda has not licensed any institution to sell cryptocurrencies or to facilitate the trade-in of cryptocurrencies. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019.”

However, in the central bank’s latest circular, Kawere warned licensed entities violating provisions of Uganda’s National Payment System Act, 2020, that the central bank will not hesitate “to invoke its powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees that will be found in breach of the above directive.”

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Crypto and Blockchain Firms Constitute 16% of UAE Free Zone’s Record Q1 Company Registrations

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Crypto and blockchain firms constituted 16% of the 655 new company registrations that were recorded in Q1 of 2022, the Dubai Multi Commodities Centre (DMCC) has said. The surge in crypto-related registrations also coincided with a quarterly period in which the DMCC is reported to have recorded its “highest Q1 performance” since inception.

Rise in Registrations Attributed to the Launch of DMCC Crypto Centre

One of the UAE’s largest free zones, the Dubai Multi Commodities Centre (DMCC), has said 16% of the 655 new company registrations recorded in Q1 of 2022 were crypto and blockchain firms. The DMCC has attributed this surge in crypto and blockchain companies joining the free zone to the presence of the DMCC Crypto Centre, which was launched in May 2021.

According to a statement released by DMCC, the rise in the number of new registrations by crypto firms came during a quarter that has been named “the highest Q1 performance since 2002 inception.” In the statement, Ahmed Bin Sulayem, Executive Chairman and CEO at DMCC, touts the new milestone which is said to have cemented the free zone’s status as a “world-leading business destination.” The CEO explained:

The global economic climate remains challenging, however, Dubai’s reputation as a world-leading business destination is stronger than ever, and DMCC sits at the very heart of this international appeal. Registering 665 new companies in the first three months of 2022 is another record broken for DMCC, and serves to show the huge potential on offer when joining our Free Zone in Dubai.

DMCC will continue with its efforts to attract ambitious firms that may be looking to set up in Dubai, Sulayem added.

Performance Better Than in Previous Quarters

Meanwhile, in the statement, DMCC revealed its key markets — namely India, U.K., Germany, and France — had performed better than in previous, similar quarters. According to the statement, Dubai company formations from China grew by 34%. The DMCC has attributed this growth to its “significant Mandarin engagement programmes that run country-wide throughout the year, and its representative office in Shenzhen.”

DMCC’s specific outreach programs to markets like Israel and Turkey resulted in quarterly company registrations originating from these jurisdictions rising by 350% and 100% respectively. According to the statement, DMCC has seen increased interest from trading hubs such as Indonesia and Vietnam.

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