Africa’s Growing Cryptocurrency Adaption is to Aid the Devaluation of the Fiat – TCR
- In fact as per a Reuters report, the total number of cryptocurrency transactions in Africa have risen by almost 55%.
- The Nigerian bureau chief of Reuters explained the reason behind the growth of cryptocurrency trading.
- Chainalysis reported that the crypto transfers individually and by small businesses in Africa rose by 40% and amounted to a total of $315 million.
Africa’s Cryptocurrency trading in the year 2020 has seen immense potential. In fact as per a Reuters report, the total number of cryptocurrency transactions in Africa have risen by almost 55%. Countries like Nigeria, South Africa and Kenya are the ones that contribute to Africa’s crypto transaction revolution. Back in June, the crypto analytic agency, Chainalysis reported that the crypto transfers individually and by small businesses in Africa rose by 40% and amounted to a total of $315 million.
Alexis Akwagyiram, the Nigerian bureau chief of Reuters explained the reason behind the growth of cryptocurrency trading. He said the main reason why crypto has grown popular because over the past few years the value of the fiat currencies have fallen down. Consequently, it has become a challenge for them to get hold of the US Dollar which is a global standard of currency. To cope up with the challenge, small businesses use bitcoin for their trades and services. By doing so, they not only get a wider exposure to the global trade systems but also get to interact directly with their business partners who are located in different parts of the world.
Generally, cryptocurrencies are easier to use which helps these small businesses to be much more efficient and smooth. Nigeria has recently seen a great uptrend in its crypto usage. To be precise, the country has reported a growth of over 55% with total number of crypto transactions amounting up to $120,000. The country’s economy is hugely dependent on oil reserves. And a few months ago, the economy crippled as lockdowns stopped many companies and industries and the low global crude prices went very low. Consequently, Nigeria’s fiat currency Naira lost its value. Hence in a country whose economy is unstable, cryptocurrencies can be of great help.
However, cryptocurrencies in many countries are still unregulated. The governments of the countries have still not passed any framework regarding the regulatory procedures of the crypto assets. Legality of such assets in the continent still requires clarity. Hence it is highly possible that these businesses may be exposed to frauds and scams. If any sum is lost in the process they may not have any right to complain or claim for the losses because of lack of a regulatory framework.
Author: By Steve Anderrson
Crypto exchanges saw a 14-month high in website visits during August
Cryptocurrency exchanges observed a 30.5% increase in web traffic from July to August. According to data provided by SimilarWeb, there were 144.3 million visits to crypto exchange sites in August, marking a 14-month high.
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Author: Momina Khan
CEX.IO to Offer Instant Cryptocurrency-Backed Lending Service in 217 Countries and Territories
LONDON, the United Kingdom – CEX.IO, one of the largest international exchanges in the cryptocurrency market, is set to launch a digital asset-backed lending service in September. Available in 217 countries and territories – including Australia, the United Kingdom, the European Union, and most nations in Asia – CEX.IO LOAN will allow various cryptocurrency market participants to borrow funds against their digital asset holdings within a few minutes and without credit checks.
As part of a flexible lending service, CEX.IO customers can decide on the duration and size of a loan they take out. Loan durations range from a week to one year, while CEX.IO customers can borrow any amount between $500 and $500,000. Larger and longer duration loans will enjoy smaller interest rates.
The service will be facilitated by a multimillion dollar liquidity pool, a significant portion of which has already been committed by CEX.IO and its partners.
To borrow funds, users first have to deposit cryptocurrency, which serves as collateral for a loan, to their accounts. Currently, CEX.IO LOAN users can borrow funds against their Bitcoin (BTC) and Ethereum (ETH) holdings, with a 50% Loan-to-Value (LTV) ratio. Registered and verified customers receive the loans instantly. New clients will need to open an account at CEX.IO and complete a KYC procedure before sending a loan request.
Successfully issued USD or EUR loan gets credited to the borrower’s user account. The borrower can then withdraw the funds to a card or a bank account or use money to trade cryptocurrency on the platform. After the full repayment of the loan’s interest and principal, CEX.IO automatically releases the digital asset collateral back to the borrower.
Digital asset-backed loans provide use-cases for multiple participants of the cryptocurrency market. Borrowing fiat against digital assets, instead of selling these assets, becomes a practical alternative for those who need extra capital. A loan provides necessary funds without having to give up a potential upside from cryptocurrency appreciation. For traders and investors, this liquidity injection can fuel uninterrupted market activity. For startups and sole entrepreneurs, a loan can cover operational and growth expenses.
“Our clients are a vibrant and diverse group of market participants, whose needs evolve with the industry. We aspire to provide our clients with capital that helps them capture opportunities coming their way. Our loans offer that extra boost, which traders, investors, startups, and entrepreneurs in general, need, while they can still benefit from the potential appreciation of assets they own,”- Anton Chashchin, Commercial Director for the CEX.IO LOAN service, stated.
CEX.IO LOAN is a part of the CEX.IO Group. Founded in 2013, the London-based CEX.IO operates one of the largest international exchanges of the cryptocurrency market, which has been featured among Crypto Compare’s ten best exchange services and Coin Metrics’ trusted service providers. With a multi-functional digital asset exchange, CEX.IO serves over 3 million customers worldwide with a team of over 250 professionals and offices in the UK, USA, Ukraine, Cyprus, and Gibraltar. From entry-level cryptocurrency users to professional traders as well as institutions and businesses, CEX.IO suits the needs of various crypto market participants with a reliable, high-security digital asset service.
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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Author: By TeamMMG
Ren and UMA launch a Bitcoin-backed yield dollar
Trustless cross-chain bridge Ren and permissionless synthetic asset platform UMA have teamed up to launch a Bitcoin-backed yield dollar called uUSD, in addition to a joint liquidity mining reward program.
The partnership will result in a product that allows investors to leverage Bitcoin permissionlessly on the Ethereum network. The uUSD is UMA’s second yield dollar product following an Ethereum-backed yield dollar called yUSD, launched in July 2020. The concept was highly successful with over 10 million yUSD minted over the past two months.
In partnership with @UMAprotocol, we are introducing a BTC backed Yield Dollar, along with a joint liquidity mining reward program.https://t.co/99kEVqP9bC
— Ren (@renprotocol) September 7, 2020
A yield dollar is similar to a stablecoin but with a few significant differences. It has an expiry date just like a futures contract, and as it nears that date the price will approach $1. Upon expiry, it will be redeemable for $1 of the collateral asset at the exact time of expiry. Uma describes it as representing “fixed-rate, fixed-term loan” since when they are minted, yield dollars are usually valued at less than $1.
Users will purchase renBTC, a tokenized Bitcoin competitor to wBTC, and lock it as collateral with UMA in order to mint uUSD tokens. These yield dollars can then be used to purchase more renBTC or for investment on other DeFi protocols.
In addition to the new yield dollar will be a joint Ren and UMA liquidity farming incentive to jump start collateral deposits. It will enable investors to earn UMA and Ren tokens for providing liquidity to the Balancer pool for uUSD which can be paired with USDC. The renBTC yield dollar features a 125% collateralization ratio which matures on October 1st.
To incentivize yield farmers, the pool will receive 10,000 UMA and 25,000 REN tokens per week, in addition to BAL tokens per the protocol’s calculations. The annual percentage rate is not fixed and will depend on how much liquidity is provided over the entire seven day period.
The offering is positive news for the rapidly growing wrapped Bitcoin market which allows yield farmers to put their BTC holdings to work on ERC-20 based protocols. Over the past three months the amount of Bitcoin tokenized on the Ethereum network has surged 1350% and currently stands at just below 78,000 BTC according to btconethereum.com. Of that total around a quarter, or 18,732, are renBTC.
Author: by Total Exchange
Binance launches new exchange in Turkey
Leading cryptocurrency exchange Binance announced launch of Binance TR, its new subsidiary in Turkey which will allow fiat-to-crypto and crypto-to-crypto exchange for users in Turkey and allow them to trade crypto pairs like bitcoin (BTC), ether (ETH), tether (USDT), XRP and the exchange’s own Binance coin (BNB) and BUSD stablecoin.
Introducing the new local exchange @BinanceTR! 🇹🇷#Binance is formally entering the Turkish market.
You can exchange crypto with Turkish Lira on https://t.co/haQJrwv57R now!https://t.co/FNnx3jtBFh
— Binance (@binance) September 9, 2020
An independent local fintech company called ‘BN Teknoloji A.S’ will run the daily operations of the crypto exchange owned by Binance. The release, however, did not mention additional details about the partnership between BN Teknoloji A.S and Binance.
The announcement further mentioned that Binance TR would use Binance Cloud, an infrastructure solution to launch cryptocurrency exchanges, to tap the broader exchange’s liquidity. Binance’s emergency insurance fund, SAFU Fund is said to cover the assets of users in Turkey, according to the release. Binance founder and CEO Changpeng Zhao said in a statement:
Turkey is not only one of the leading countries in blockchain adoption but also a key bridge market for the global economy, which connects Asia to Europe.
According to a recent survey, Turkey ranked as the fourth crypto friendly country with 16% of respondents in Turkey saying they owned/used cryptocurrency.
Binance TR would be the sixth subsidiary of the crypto exchange giant along with other Binance platforms that offer fiat-to-crypto trading in Singapore, Korea, Uganda, Jersey, and the United States. Binance will launch its next exchange subsidiary in the U.K this Fall.
Author: by admin