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Crypto-currencies and Blockchain

Championing Financial Literacy in the Digital Economy

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Digital technology has made financial services borderless and allowed access to other countries’ financial products and services. Financial markets have become more digitized, and new currencies have been birthed. The advent of this global digitized financial economy poses challenges for players and investors alike.

Therefore, it is essential to understand the new trends welcomed by emerging technologies and keep up with the changing tools affecting the markets. Therefore, there is a need for financial literacy to equip individuals with the requisite knowledge of the changing global markets.

The eGold developed by an oncologist, Douglas Jackson, began the financial space’s evolution through digital technology. Since then, the global financial market has witnessed a digitized advancement in markets and commodities. Before now, the financial sector comprised stagnant banking systems with obsolete infrastructures that take days and sometimes weeks to complete transactions around the world.

Today, eCurrencies and cryptocurrencies have flooded the global financial space. Governments are finding new ways to develop local currencies into a more digitized and acceptable medium of trade and exchange.

In 2019 the Chinese government unveiled the country’s digital currency called the digital yuan (e-CNY), which began trial in April 2020. Likewise, President Muhammadu Buhari of the Federal Republic of Nigeria, on the 25th of October 2021, unveiled the Central Bank Digital Currency (CBDC) called the eNaira.

According to Atlantic Council’s Geoeconomics Center, over 75 other countries explore digital currencies. In contrast, island countries like the Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, and Grenada have fully launched into space. Therefore, it is evident that as governments are developing and backing eCurrencies within their markets, there is a need for financial literacy to provide financial inclusion amongst citizens.

As a consequence of the changing financial structure, digital financial literacy has become essential for educating and empowering individuals to evaluate their options in the financial marketplace and take suitable actions in a way that is relevant to their lives. Evidence shows that digital financial literate individuals are more likely to have a fulfilled life, more savings, and greater economic independence.

Digital financial literacy has become recognized as a requirement for effective financial inclusion and has gained an important position in the policy agenda of many developed countries. The goal of digital financial literacy is to contribute to poverty reduction and economic inclusion objectives of developing economies. Hence, it is significant for developing countries like Nigeria to embrace financial academies to support the government’s effort in enhancing human capital development so that citizens can be more financially independent to allow economic growth and development.

With digital technologies changing the value proposition of financial products, services, and digital currencies, educational institutions invested in providing financial literacy for Nigerians like OBG financial academy, which leverages market insights and innovative tools to educate citizens on how best to navigate the new financial space should be instituted.

OBG Academy also provides expanded access to financial knowledge, tools, and the requisite resources needed for financial freedom. It enhances financial inclusion, promotes wealth creation and human capital development.

Digital financial literacy makes a difference in the quality of life. It equips citizens with the knowledge of financial investments, gives them the discipline to save and ensures they enjoy a dignified life with little dependence on governments and their provisions. Financially literate individuals can benefit the economy by encouraging genuine competition, forcing innovations and improving efficiency.

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Crypto-currencies and Blockchain

Cryptocurrency: Binance Introduces Crypto Price Widget

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Binance has announced the introduction of the Binance Crypto Price Widget as part of its ongoing effort to make cryptocurrency trading both more accessible and more widely understood.

The Binance Crypto Price widget is an easy to install, easily integrated tool that provides value to website visitors by sharing live, reliable updates on top cryptocurrency prices from the largest cryptocurrency exchange in the world.

“Websites benefit from the widget because it offers an engaging, interactive experience for visitors,” points out Binance’s Director in West & East Africa, Nadeem Anjarwalla. He further explains that the widget delivers news around prices, data and developments in the crypto world. “By providing this information, visitors are encouraged to spend more time on the site. But, more than this, because the information is credible and reliable, the website gains a reputation for credibility and reliability, too. In this way, it is able to build an audience who are regular to check in regularly with a source they trust.”

The information on offer is extremely comprehensive, offering live prices of up to 10 cryptocurrencies as well as fiat currencies. The widget is flexible, too, with website owners able to choose a customizable price, while the appearance can also be customized to match the website design and branding. Owners can also choose to integrate the widget as a ticker providing real-time feeds, or a blog.

Anjarwalla says that the widget can be installed directly onto a website with just a few clicks, starting with a visit to the Binance Crypto Price Widget page. “From there, website owners choose the appropriate code and paste it onto the location on their own website where they would like visitors to access it.”

The benefits for visitors are clear, too: having access to up-to-the-minute information for the most popular cryptocurrencies, from the world’s largest cryptocurrency, is a major advantage for those wishing to build their crypto portfolio.

“We realise that, for many would-be investors, the world of crypto remains difficult to understand and somewhat daunting. Tools like the Binance Crypto Price Widget have been made available specifically to change this mindset and to make investing more simple for everyone,” Anjarwalla concludes.

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Crypto-currencies and Blockchain

Mastercard and Web3 Players Join Forces on Blockchain Transactions Trust

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Mastercard is teaming up with Web3 players on an on-chain identity and verification framework covering a variety of applications in payments, remittances, ticketing and NFTs.

Mastercard Crypto Credential is designed to help companies, developers, and individuals to realise the full potential of powering payments, commerce, and economic value on-chain and across borders.

Among the partners onboard are crypto wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold, which are working on an initial project to enable transfers between the US and Latin America and the Caribbean corridors.

The company is also teaming up with public blockchain network organisations Aptos Labs, Ava Labs, Polygon and The Solana Foundation. Aptos says it is among the shortlist of blockchains to enable the identity and attestation element of sending and receiving funds through Web3.

The partners also intend to explore the utility of identity-oriented Web3 solutions use cases like NFTs, ticketing, enterprise, and payments.

Raj Dhamodharan, EVP, digital asset and blockchain product and partnerships, Mastercard, says: “With Mastercard Crypto Credential, we can help ensure that those interested in interacting across Web3 environments are meeting defined standards for the types of activities they’d like to pursue.

“Mastercard Crypto Credential will not only define verification standards and levels, but also provide necessary enabling technology to help bring more use cases to life.”

Separately, Mastercard has signed up another six blockchain and digital asset startups for its StartPath programme, giving participants training, access to channels and customers as well as subject matter expertise, and an opportunity for technical collaboration. The new members are Axelar, Cheeze, Coala Pay, Qonbay.io, RociFi Labs and Suberra.

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Crypto-currencies and Blockchain

As currency devaluation impacts African consumers, Stablecoins offer a safe and reliable alternative

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In recent years, many countries across Africa have been grappling with the growing challenge of currency devaluation. Currency devaluation refers to the decline in the value of a country’s currency relative to other currencies in the world. It can be caused by various internal or external factors. For example, weak economic fundamentals, such as high inflation, low GDP growth, high levels of debt or low foreign reserves, can erode investor confidence and lead to a decrease in demand for the currency, resulting in it losing value. 

According to Nadeem Anjarwalla, Director for Binance in West & East Africa, while currency devaluation can be used as a tool by governments to boost exports, stimulate economic growth, or reduce trade deficits, it can also have negative consequences for the economy and people of the country concerned. 

“Currency devaluation can erode the purchasing power of people’s money, cause inflation levels and the costs of living to increase, and create uncertainty in financial markets,” Anjarwalla explains, “all of which can result in reduced standards of living for consumers and less certainty when it comes to growing their money through traditional savings and investment vehicles.”

However, Anjarwalla points out that there is a solution to the challenge of currency devaluation and the impacts that a declining currency can have on people’s financial well-being. “Stablecoins provide a practical solution for African consumers to hedge against the currency devaluation that many countries on the continent are facing,” he explains, “by offering a stable way of growing the value of their money, easy digital access to their funds, and a steadily increasing number of opportunities to use Stablecoins to do secure cashless transactions.”

Stablecoins are a type of cryptocurrency that is pegged to a stable asset, like a traditional currency such as the US dollar, or a commodity like gold. This allows Stablecoins to maintain steady value and be less susceptible to the volatility often associated with other cryptocurrencies. These attributes make Stablecoins a reliable hedge against currency devaluation, even in uncertain economic conditions. 

“One of the most valuable aspects of Stablecoins in an environment of currency devaluation is that they offer a secure and efficient means of saving and growing money, making them a reliable option for long-term savings,” Anjarwalla explains, “So, African consumers can save their money in Stablecoins, secure in the knowledge that its value will remain relatively stable over time, and even have the potential to grow, regardless of the fluctuations happening in their country’s local currency.”

And the benefits of Stablecoins are not limited to their savings potential. They also offer fast and low-cost cross-border payments and transfers, making them a convenient option for remittances and international transactions. “African consumers can use Stablecoins to send and receive money across borders quickly and efficiently,” Anjarwalla says, “without being faced with a situation where currency devaluation in the recipient’s country means that the money is worth less when it reaches its destination.”

Anjarwalla points to the convenience and accessibility of Stablecoins as another compelling reason why growing numbers of consumers in Africa are turning to these innovative currencies to enhance their financial resilience in difficult economic times. “People can easily convert their local currency into Stablecoins through peer-to-peer exchanges or decentralised finance (DeFi) platforms,” he says, “ and they can then easily access their Stablecoins through cryptocurrency exchanges, like Binance (Binance.com), which provide a user-friendly platform for buying, selling, and trading the coins. What’s more, an increasing number of fintech companies in Africa are incorporating Stablecoins into their payment systems, enabling consumers to transact directly with them to pay bills, invest, and purchase everyday goods and services.” 

He points out that, as the demand for Stablecoins continues to grow in Africa, leading cryptocurrency exchanges, like Binance, are actively supporting their adoption on the continent as a viable way to counteract growing economic uncertainty and ongoing currency devaluation. “As one of the largest cryptocurrency exchanges in the world, Binance offers a wide range of Stablecoins, including Binance USD (BUSD), Tether (USDT), USD Coin, TrueUSD, and Dai (DAI),” he says, “which are pegged to the US dollar and provide a reliable hedge against currency devaluation for African consumers.” 

“By providing a secure and convenient platform for buying, selling, and using Stablecoins, Binance is not only offering African consumers a reliable and accessible option to safeguard their financial future by countering the negative impacts of currency devaluation,” Anjarwalla says, “but we are also contributing to greater financial inclusion and economic empowerment and resilience on the continent.”

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