Cardano CEO Predicts that DeFi’s Future is with Africa 0 426

In the running year, decentralized finance (DeFi) has turned out to be the most beneficial asset of the crypto-blockchain industry. The DeFi platform has been developed and introduced by the crypto-blockchain industry to replace the traditional finance system.

It will allow the users to acquire loans, services, and other benefits that they used to acquire through banks at conditions that would seem harsh. With the introduction of the DeFi platform, the users now have the ability to acquire these benefits without the involvement of a third party.

With so much success and adoption, crypto-savvy countries from around the world have started focusing on DeFi platform. Many countries have started to regulate the crypto-blockchain industry to ensure they leave no stone unturned that would end up resulting in a breach of regulations.

They are doing this just to make sure that the DeFi platform can be fully streamlined for mainstream adoption.

Just recently, Charles Hoskinson, who is the CEO at IOHK talked about their upcoming plans in the DeFi space. Charles Hoskinson talked about the DeFi platform developments on his latest live broadcast through his YouTube channel on December 12, 2020.

While talking about the DeFi space, Hoskinson revealed to his followers and the entire community what their plans are for the African continent. He stated that their company is looking to gain prominence and partnerships in Africa for long-term development projects in the DeFi space.

Hoskinson also made a very bold claim around the DeFi adoption of the African continent in the coming years. He stated that in near future, the world’s second-largest continent by population will reign over the DeFi space. Africa will be the future of DeFi developments and growth in the entire world.

While talking about the DeFi platform he talked about the markets that they currently have to analyze. He stated that on one side they have the American and European markets that are fully regulated, and not willing to become flexible at all. On the other hand, there are African and Southeast Asian markets that comprise of developing countries.

While talking about Africa and Southeast Asia, Hoskinson stated that countries from these continents are constantly on the lookout for investments and resources to improve their economic conditions.

As Africa as a whole comprises of countries that are struggling with their finances and economic infrastructures, they come up as very friendly and welcoming entities for the DeFi platforms.

These countries are open to ideas and innovations that can help them improve their financial infrastructure. Even the citizens from these countries are open to ideas and processes that can help them make money and change their lifestyles.

When it comes to Africa’s adoption and predicted supremacy in DeFi, Hoskinson is not the only person who has this view. One of the members of Curve Labs ‘Patrick Rawson’ also shared the same views about Africa’s adoption of the DeFi space.

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IMF Says Russia and Iran May Use Crypto Mining for Monetizing Energy 0 41

The April 2022Global Financial Stability Report of the IMF has highlighted the consequences of the ongoing Russian invasion of Ukraine. The document said that the role of the US dollar was bound to be affected because of the conflict, as it would lead to the introduction of central bank digital currencies (CBDCs) and the global financial system’s resiliency would also be put to a test. The climate transition goals could also be put at risk because of the priorities associated with energy security. Another issue that would have to be dealt with in the coming years by lawmakers is the ‘cryptoization’ which is likely to occur because emerging markets are experiencing a widespread use of crypto.

IMF cited an increase in crypto trading volumes seen after the introduction of sanctions on Russia to back their statement. This included the financial penalties that had been imposed by Western nations on Russia because of its military invasion. The report said that such cross-border transactions were increasing in the long-term, which means that there would be challenges when it comes to imposing sanctions and managing capital flow. The IMF noted that crypto transactions have increased in both Russia and Ukraine because of the capital restrictions that have been imposed.

However, it is important to note that there has been a fall in liquidity in centralized exchanges where the hryvnia and ruble trading pairs are concerned. Therefore, using crypto exchanges for making large transfers has become rather impractical due to reduced liquidity. But, the IMF admitted that users do have the option of evading some measures via the crypto ecosystem because the identity verification requirements are quite lax in this industry. Hence, the international organization said that blocking new deposits of ruble and freezing crypto assets meant that users could have shifted to non-complying or less transparent crypto platforms and service providers.

Experts at IMF believe that both Russia and Iran could circumvent their respective sanctions via crypto mining. The nations could use their energy resources for generating revenue via crypto mining outside of the traditional financial system. Currently, the countries have a limited share of crypto mining activities, but there is a possibility that it could be increased, considering the size of the mining industry. The IMF quoted estimates showing that almost 11% of the mining revenues of bitcoin could have gone to Russia, which was around $1.4 billion per month, while Iran’s share had been 3%.

Bank of England Says Crypto Assets have Financial Stability Risks 0 80

On Thursday, the Financial Policy Committee of the Bank of England disclosed that they are working on developing a regulatory framework for digital assets. The central bank also made a reference to the sanctions that have been imposed because of the war between Russia and Ukraine in the statements. Bureaucrats and financial regulatory authorities all over the world have become increasingly concerned in recent times that Russia could take advantage of crypto assets to bypass the economic sanctions that have been imposed. The press statement of the BOE said that it was unlikely for crypto assets to provide Russia with a feasible way to get around sanctions at a large scale for now, but there was a possibility they could do so.

Therefore, it is a must to ensure that there are effective public policy frameworksthat can accompany innovation in crypto assets for maintaining the integrity and trust in the financial system. The crypto economy has been highly criticized by some members of the Bank of England for quite a while. Last year in mid-November, Andrew Bailey, the Governor of the Bank of England, had expressed his concerns about the adoption of bitcoin as legal tender in El Salvador. Sir Jon Cunliffe, the deputy governor for financial stability for the central bank, said in the following month that prices of crypto assets could drop to zero.

On Thursday, the report of the FPC talked about financial stability. The committee of the central bank noted that the FPC is assessing the risks to the financial system’s stability and it has concluded that these are currently limited. This is because their size remains limited for now and they are not that connected with the wider financial system. However, the FPC said that if they continue to grow at the same pace, and if they become interconnected with the overall financial system, then these crypto assets could pose a risk to the stability of the financial system.

Since the conflict between Russia and Ukraine began, politicians and lawmakers all over the globe have been discussing, developing, or even proposing laws aimed at regulating and researching digital currencies. The FPC’s statements on Thursday show that the BOE wants to classify crypto assets in the same category as it does traditional financial assets. Not only does the FPC plan on developing a regulatory framework that would govern digital assets, it has also mentioned stablecoins.

The FPC said that a major stablecoin that does not have a reliable deposit guarantee could turn out to be a risk to the UK’s financial system. According to the committee, if they introduce a systemic stablecoin, which is backed through a deposit mad with a commercial bank, it would result in significant risks to the stability of the financial system. All of this talk about crypto has been brought forward because of the Russian-Ukraine conflict and the possibility of the former using cryptocurrencies to evade the tough economic sanctions that have been imposed by Western nations due to its actions.

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