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Adesoji Solanke, Atlantic Council, Brian Popelka, CBDC, Central Financial institution of Nigeria (CBN), e-naira, Flutterwave, Josh Lipsky, Kingsley Obiora, Paxful, ussd
On October 25, Nigeria commemorated the primary anniversary of the Central Financial institution of Nigeria’s e-naira, at the same time as extra residents proceed to snub the digital forex. In a transfer geared toward boosting using the CBDC, the central financial institution is providing a 5% low cost to motorized rickshaw drivers and passengers that use the e-naira. Kingsley Obiora, a deputy governor on the CBN, urged that the digital forex wants “a bit push from the federal government” whether it is to be broadly embraced.
As Nigeria commemorated the e-naira’s first anniversary on October 25, critics have claimed that the common Nigerian has nonetheless not embraced Africa’s first central financial institution digital forex (CBDC). They level to the e-naira pockets’s comparatively low variety of downloads in addition to the still-growing use of cryptocurrencies when remitting funds or making cross-border funds.
In August, Bitcoin.com Information reported that between January and June this yr, peer-to-peer bitcoin traded volumes on Paxful alone amounted to almost $400 million. The determine is greater than half the $760 million that was recorded in the entire of 2021. In response to Paxful, Nigerians had been resorting to cryptocurrencies and peer-to-peer buying and selling platforms as a result of they supply “a possibility for monetary inclusion.”
But, regardless of the obvious snub of the CBDC by Nigerians thus far, the Central Financial institution of Nigeria (CBN) continues to be projecting an eightfold improve within the variety of e-naira pockets downloads. As beforehand reported by Bitcoin.com Information, the central financial institution hopes to attain this by way of using numerous initiatives that embrace enabling the unstructured supplementary service knowledge (USSD) performance to the pockets app.
The CBN has additionally engaged fee service suppliers like fintech big Flutterwave, which has since added the e-naira to its record of fee choices for retailers. In one in all its newest strikes geared toward boosting using the CBDC, the central financial institution is providing a 5% low cost to drivers and passengers of motorized rickshaws that pay with the e-naira.
In response to an announcement launched by Bitt — the CBN’s expertise companion — the onboarding of banked clients and retailers is per part two actions of the central financial institution’s staggered rollout of the CBDC. Within the third stage, the CBN mentioned it would search to onboard the “Nigerian Commerce and Trade platform.” This part may also embrace “sector-specific tokens for grants and subsidies” in addition to “programmable funds for e-naira fee eventualities.”
Remarking on the event to mark the CBDC’s anniversary, Brian Popelka, the CEO of Bitt mentioned:
This yr has been stuffed with firsts for Africa. Being the primary supplies the chance to grow to be the primary to search out options and chart the course for others to observe. Right now’s one-year milestone is an distinctive achievement for each the Central Financial institution of Nigeria and Bitt groups. We sit up for continued partnership on this CBDC deployment journey and to supply extra options to increase eNaira’s worth to all Nigerians and everybody, in every single place.
Nevertheless, Popelka and the CBN’s optimism shouldn’t be shared by everybody. Adesoji Solanke, a director with the funding financial institution Renaissance Capital, is one critic. With Nigeria going through ongoing international change shortages, Solanke, similar to his fellow Nigerians, hoped the e-naira would develop into a steady different to the depreciating naira.
In remarks revealed by Bloomberg, Solanke insisted the CBN’s digital forex “doesn’t deal with any of those fundamental use circumstances, so no shock at its low adoption charges thus far.”
In the meantime, Kingsley Obiora, a deputy governor on the CBN, is quoted within the report suggesting that “a bit push from the federal government” is required if the CBDC is to take off. Josh Lipsky, director of the Atlantic Council’s Geoeconomics Heart, reportedly mentioned each the central financial institution and authorities have to be concerned in efforts geared toward serving to extra Nigerians grow to be acquainted with the CBDC.
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An up-and-coming player in the world of cryptocurrency is looking to revolutionize the industry through its unique processes that highlight sustainability.
According to Be3, cryptocurrency XRP, developed by Ripple Labs, could have a “transformative impact on both finance and environmental sustainability” thanks to its unique consensus mechanism that does not require mining and uses a negligible amount of energy even as it scales.
It generates a minuscule amount of pollutants per transaction while producing 1,110 pounds of electronic waste and impacting just over 8 cubic miles of natural resources.
This approach separates XRP from its contemporaries, which often rely on the notoriously power-hungry proof-of-work systems and hulking mining centers that can destabilize the grid.
Statistics provided by TRG Datacenters show that XRP is the second-most eco-friendly cryptocurrency behind IOTA, consuming just 0.0079 kilowatt-hours per transaction. Comparatively, bitcoin ranks last at a staggering 707 KWh per transaction.
Furthermore, the cryptocurrency became the first major global blockchain to achieve carbon net zero by purchasing enough renewable energy to offset its minimal energy requirements, per the XRP Ledger.
Be3 also noted other features that make XRP an attractive option for institutions focused on environmental responsibility, as it takes just three to five seconds to settle at fractions of a cent per transaction.
It’s a welcome addition to a sector that desperately needs more sustainable options. A study by the International Monetary Fund found that crypto mines, in conjunction with artificial intelligence data centers, accounted for 2% of global electricity demand and 1% of carbon dioxide pollution in 2022.
The United Nations found that the bitcoin mining network used 173.42 terawatt-hours of electricity between 2020 and 2021, resulting in a carbon footprint equivalent to burning 84 billion pounds of coal.
Coal and natural gas also supplied 66% of the energy for mining operations during this period, polluting the planet with planet-warming gases.
Luckily, the sector has made significant strides in recent times in an effort to become more eco-friendly.
Alephium, which utilizes a proof-of-work blockchain, has partnered with Gigatons to implement a proof-of-less-work consensus that is significantly more energy efficient.
Meanwhile, Ethereum has transitioned to a proof-of-stake system that has cut its energy consumption by nearly 100%.
“In a world increasingly attentive to environmental impact, XRP’s innovative technology not only promises efficiency but also a greener future,” Be3 wrote.
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ZIUM
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Donald Trump is making news once more, but this time it’s not for political reasons; it’s about cryptocurrency. As he prepares to return as the 47th President of the United States, Trump will become the first sitting president to own meme currencies, a decision that has stirred both enthusiasm and skepticism in the crypto community.
Recent sources claim that Trump’s crypto wallet consists largely of meme coins and is valued roughly $8 million. Among the assets are $1.5 million in a meme currency with Trump-themed design and $5.5 million in TROG tokens.
In addition, he has about 1.3 billion GUA coins, which amounts to nearly $400,000, and $167,000 in TRUMPIUS tokens. This is a first of its kind, where Trump becomes an oddity in the world of politics and cryptocurrency, considering his earlier reluctance towards digital assets.
DONALD J. TRUMP WILL BE THE FIRST SITTING US PRESIDENT TO HOLD MEMECOINS pic.twitter.com/ODlNXDaKIT
— Arkham (@arkham) January 10, 2025
Trump’s journey into the crypto world is notable. He had been a strong critic of Bitcoin and other cryptocurrencies, calling them scams. But that all changed in 2024 when he started publicly endorsing Bitcoin and speaking out for the right to own it. That’s a broader trend among politicians, who are increasingly recognizing the potential of cryptocurrencies and their growing popularity among voters.
Trump’s financial success in the digital sphere was also aided by his venture into non-fungible tokens (NFTs) on Ethereum. Trump reportedly made a good living from these endeavors, and he currently owns roughly 496.77 ETH, which is worth about $1.6 million.
Many people are eager to see how Trump’s administration will regulate cryptocurrencies now that he is back in office. A possible change toward a more advantageous regulatory climate for digital assets is hinted at by the nomination of important individuals like David Sacks as “Crypto Czar” and Paul Atkins as SEC chair. This could result in more precise rules for investors and businesses involved in the cryptocurrency industry.
Donald Trump. Image: Ronda Churchill/Reuters
The policies by Trump are already changing market dynamics as everybody is anxiously awaiting them. During this time when Bitcoin hit a record high of $108k, while meme coins surged, analysts still feel that Trump could make the year 2025 a major turning point in cryptocurrencies.
The rise of Trump-owned meme coins is indicative of a broader cultural shift among younger investors who are fed up with established financial institutions. This combination of the political influence of Trump and the speculative nature of meme coins puts a scenario under which political events could significantly affect cryptocurrency markets. Thus, while the investors go about this, they are not ignorant of the volatility that is usually associated with meme coins.
Featured image from Fortanix, chart from TradingView
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