🌍 Crypto adoption in Africa continues

All Things Flooz newsletter is for innovators, creators and traders.

Flooz

5 min read Apr 26, 2023


Talking points

  • ⚔️ Coinbase attack SEC

  • 💳 Visa to drive crypto adoption

  • 🏦 Zimbabwe new legal tender?

Here's some of the latest heat on the Flooz platform 🔥

⚔️ Coinbase attack SEC

The almighty crypto exchange, Coinbase has filed a lawsuit against the SEC, urging the securities watchdog to provide clear rules and guidelines for the crypto industry.

The exchange has requested a federal court to press the SEC to respond to its previous rule making petition within just seven days. Coinbase had originally requested the SEC to propose and adopt rules to identify which digital assets are considered securities and how securities laws would apply to them, back in July of last year. They argued that the lack of a clear and workable regulatory regime in the US has hindered the smooth functioning of the crypto market.

This frustration is also shared by many others who have also been impacted by the SEC in the past year, making it difficult to understand many aspects, not to mention that this was also without any prior warning.

Coinbase has primarily expressed its frustration with the SEC's lack of response or comment on their request. In their recent federal court filing, Coinbase stated, "Coinbase does not ask the Court to instruct the agency how to respond. It simply requests that the Court order the SEC to respond at all." And without surprise, the SEC representatives declined to respond to this too.

The SEC had previously published a framework in 2019 outlining how digital assets fit into investment contracts and securities laws, but it has been widely regarded as insufficient by the crypto industry. SEC Chair Gary Gensler has repeatedly stated that most tokens in the crypto market, with the exception of Bitcoin, are considered securities.

Coinbase has faced regulatory challenges from the SEC in the past, including receiving a Wells notice, which indicates that the agency intends to pursue enforcement action against the company. The lack of clear decision-making from the SEC has created uncertainty for crypto companies, preventing them from adequately preparing for the future, according to Coinbase. The exchange's chief legal officer, Paul Grewal, has criticized the SEC for bringing enforcement actions based on a view of the law that hasn't been publicly shared.

Coinbase is not alone in facing the SEC's scrutiny, as several other crypto firms have also been targeted for allegedly offering unregistered securities. In fact, Coinbase CEO Brian Armstrong has even mentioned the possibility of relocating the company outside of the US due to regulatory challenges, which would be a massive step back in terms of progress for the US and could even spark mass adoption elsewhere from other US-based crypto companies.

As the crypto adoption continues to grow, transparency and protection are vital and it seems that for now, it is an ongoing journey with no clear destination. However, with influential crypto companies such as Coinbase fighting the corner for everyone involved, we could see an outcome sooner than later with pressure mounting.

Will Coinbase come out on top? 👀

 💳 Visa to drive crypto adoption

Global payment giant Visa is diving deeper into the world of cryptocurrency with a new initiative focused on stablecoin payments. That's right, the company is cooking up something big that is set to drive mainstream adoption of public blockchain networks and stablecoin payments.

The head of crypto at Visa, Cuy Sheffield, recently took to Twitter to announce the company's latest project, which is sure to catch the attention of some big players in the crypto world as the upcoming crypto product is designed to revolutionize the way we conduct digital commerce in our everyday lives and with the number of eyes on Visa who are globally recognized and trusted, this is a huge positive for crypto lovers.

But it doesn’t stop there, oh no… Visa is looking for talented software engineers to help develop the "next generation of products" that will facilitate the use of public blockchain networks and stablecoin payments. The company is looking for individuals who are experienced in programming, backend systems, and Web3 technologies. Now that is certainly some positive news as bigger expansion into crypto is likely to help with adoption, but it also shows that Visa is confident in the future of crypto too!

Visa has expressed its interest in individuals who have experience in a variety of roles, some including using Github Copilot and other AI-assisted engineering tools to write and debug smart contracts. Now as one of the world’s largest payments companies, some would argue this is a huge step in the right direction and will certainly improve trust within the space. This adds to the gradual expansion in crypto we have already seen from Visa.

Could Visa accelerate the adoption rates of crypto with these implementations? 🚀

🏦 Zimbabwe new legal tender?

The Reserve Bank of Zimbabwe is shaking things up with the introduction of a gold-backed digital currency to serve as legal tender in the country. This exciting move is part of the government's initiative to stabilize the local currency and combat continued depreciation against the U.S. dollar.

With the new gold token, citizens will be able to exchange small amounts of Zimbabwean dollars, which will allow them to hedge against currency volatility. Although some are questioning the control the ‘people’ have here, Reserve Bank of Zimbabwe Governor John Mangudya said the plan is intended to “leave no one and no place behind.”

Zimbabwe's annual consumer price inflation reached a one-year low in March, which is a positive sign of things to come, especially with many major regions around the world still experiencing huge inflation levels. However, the country still faces some steep challenges when it comes to monetary dysfunction and lack of change.

Zimbabwe has been fighting against currency volatility and inflation for over a decade. In 2009, the country adopted the U.S. dollar as its currency after an episode of hyperinflation. In 2019, the Zimbabwean dollar was reintroduced in an effort to revive the country's struggling economy. Last year, the government decided to use the U.S. dollar again in a bid to curb surging prices in the country.

Despite these challenges, crypto adoption has grown in many African countries as a result of economic challenges. Data shows that the Middle East and North Africa is the fastest-growing region for crypto adoption thanks to cross-border remittances, with over $566 billion in crypto transactions between July 2021 and June 2022, up 48% from the previous year.

This is extremely positive news in terms of adoption but also resolution to a massive underlying issue within Zimbabwe and these implementations may just move them into a more successful economic era!

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