Talking points
🌍 Africa blockchain funding surge
⛏️ Crypto mining tax incoming?
🏦 Bank offers crypto in Brazil
🌍 Africa blockchain funding surge
Time for some real news, the African blockchain scene is experiencing remarkable growth, even amidst the industry's ongoing crunch globally.
According to a report published by blockchain venture capital company Crypto Valley VC in partnership with Standard Bank, African Blockchain start-ups raised an impressive $474 million in 2022 from funding. This amount is a whopping 429% increase from the previous year's $90 million.
Now that is certainly some growth to talk about!
However, while 2021 was a record-breaking year of global venture funding, slow funding in 2022 reversed most of the gains (Albeit, every economy in the world was suffering too). However, for blockchain, 2022 still recorded an all-time high funding flow with more deals and funds being closed.
Leading the continent in the number of startups funded were Nigeria, South Africa, and Seychelles. And when it comes to the amounts of funding raised, Seychelles, South Africa, Liberia, Kenya, Nigeria, Cameroon, and Ghana topped the list in that exact order.
Furthermore, startups in Seychelles alone raised over $200 million and the average funding for each deal sealed in Nigeria raised about $1.25 million, while total funding tool up only 3.4 percent of the total venture funding.
These numbers alone illustrate that Africa is only just getting started within the crypto world, and adoption is certainly on its way!
But wait, we aren’t done yet…
The Managing Director at Crypto Valley Africa, Gideon Greaves, expressed his excitement for the future of blockchain technology on the continent, saying that the growth and progress made over the past year is nothing short of remarkable.
Let’s also not forget that with the youngest demographic in the world, Africa is distinctively situated to take advantage of its current conditions and it is expected that this will be navigated through the upcoming generation with even more power.
Now if that didn’t excite you for the future of crypto in Africa and the plethora of opportunities this will present, then we don’t know what will!
⛏️ Crypto mining tax incoming?
This week, the White House has set its sights on cryptocurrency miners, proposing a new tax to "pay their fair share" for the impact their activities have on the environment and local communities.
According to a blog post from the White House's Council of Economic Advisers, the electricity used in crypto-mining is equivalent to what's used to power all of the country's home computers or residential lighting. In fact, it's more than what's used by computers, clothes washers, and dishwashers in U.S. homes.
To address this issue, the Biden Administration proposed the Digital Asset Mining Energy excise tax, or DAME, in March. Under this proposal, firms would pay a tax equal to 30% of the cost of the electricity they use for mining. The tax would be phased in gradually over three years, starting next year.
The council argues that crypto-mining firms don't pay for the full cost they impose on others in the form of local environmental pollution, higher energy prices, and greenhouse gas emissions. By encouraging firms to take better account of these harms, the DAME tax can lead to a more sustainable and responsible approach to crypto-mining.
Moreover, the council notes that pollution from generating electricity disproportionately affects low-income neighborhoods and communities of color. As an agency within the executive office of the president, the Council of Economic Advisers advises the president on economic matters, including the impact of cryptocurrency on the economy and society.
President Biden has been a vocal advocate for addressing the climate crisis, and this proposal aligns with his broader agenda to reduce U.S. greenhouse gas emissions. However, the tax proposal would require legislation from Congress, where Republicans currently have control over the House of Representatives. Many Republican lawmakers have been supportive of innovation in the cryptocurrency sector and may be hesitant to enact tighter restrictions on crypto.
This certainly doesn't seem like an approach for sustainability from the council as Bitcoin mining has been seen to be more environmentally friendly than many operations in the US, from renewable energy alone makes this questionable, no? Well, Presidential candidate Robert F. Kennedy Jr certainly agrees that this is the wrong move 👇
Is there a bigger agenda here from the US government… perhaps a move to remove more power from the crypto world? Only time will tell, but this definitely will not please crypto miners and with good reason.
🏦 Bank offers crypto in Brazil
Revolut Bank is making its first foray into Latin America! The digital bank has opened for business in Brazil, hoping to tap into the country's growing demand for crypto assets.
According to an announcement from Revolut, there are around 10 million crypto users in Brazil. Revolut already offers crypto investments across Europe, but now it's expanding its reach to one of the fastest-growing markets in the world.
Revolut has around 29 million customers worldwide 🤯 and it's looking to carve out a share in Latin America's most populous country.
However, digital bank Nubank is already entrenched as the market leader in Brazil, with around 70 million customers. Nubank introduced crypto trading last June and hit 1 million users only a month later, which is pretty impressive!
Revolut certainly has some stiff competition as it stands, but with its focus on accessibility and ease of use, it could be a serious contender in Brazil's crypto market.
However, it is important to note that token options will be severely limited compared to other major platforms. Now... we don't like to gloat, but the Flooz trading platform has thousands of crypto tokens, accessible with just a few clicks!
What do you say to that Revolut, huh?
Either way, this is a big move from Revolut and will continue to increase the crypto adoption around the world, especially in troubling times for many economies and individuals unable to access their finances.
