Crypto ETPs are coming to Kenya crypto market while Tether is partnering with a payments firm in South Africa for blockchain education
The past week has been tumultuous, with the Africa crypto market experiencing its fair share of both losses and wins.
Traders across the continent experienced a beatdown early in the week when uncertainty caused a crash in crypto and financial markets.
The Japanese stock market opened with significant drops in stock prices, and the rest followed through the day. Bitcoin dropped to as low as $49,000, with other major altcoins feeling the heat.
The markets have since stabilized, and traders across the continent are optimistic of more gains next week.
This week, however, there was action across the African crypto market scene.
Unpacking Crypto Africa Over The Past Week: Institutional Capital In Focus as VC Funding and Exchange-Traded Products Top Headlines
South African crypto marketplace Mesh. Trade initiated a $1.64 million capital raise for Water Financial, a reverse mortgage platform.
A reverse mortgage allows homeowners to borrow a loan against their home as long as they live there.
This partnership between a crypto company and a reverse mortgage lender represents the further integration of crypto institutions into the mainstream economy.
Exchange-traded products (ETP) issuer Valour is also targeting the African market. Valour has products that trade on stock markets in Frankfurt and Sweden and is looking to expand its portfolio to emerging markets.
The firm has signed a memorandum of understanding with the Nairobi Stock Exchange (NSE) to explore floating Bitcoin and Ethereum products.
Kenya is one of the most vibrant crypto markets on the continent and could be significant for the future. The news also coincided with the Central Bank of Kenya slashing its benchmark interest rates, citing falling inflation.
DISCOVER: The 17 Best Altcoins to Buy In The August Crypto Fire Sale
Secondary crypto markets indicate the growing sophistication of the crypto sector continent-wide. Reports that prediction markets are a growing trend in Africa.
Platforms like Nodo from Nigeria allow crypto traders to trade on the outcome of various events. These vary from trending topics, new meme coins and tokens, and related prediction markets.
The high adoption of smartphones in sub-Saharan Africa bodes well for such platforms. These factors ensure that new platforms and developers have a sizeable market to target for expansion.
Tether Join Hands With Xion Global For Crypto Education in South Africa
Tether, the issuer of the world’s largest stablecoin by market cap, USDT, isteaming up with Xion Global to advance crypto and blockchain education in South Africa.
As part of this collaboration, Xion Global will incorporate USDT on Polygon for swift settlement, while Tether will provide a range of educational resources, including videos and case studies.
The primary objective is to make comprehensive content on crypto and blockchain payments easily accessible.
Africa Crypto Opinion of The Week: AAfrica Facing Challenges De-Dollarizing
Despite the call for pan-africanism and the advancement of AfCFTA, Africa faces challenges in their attempt to de-dollarize.
The problem is how leaders can convince citizens to convince national currencies amid raging inflation and without significant changes in economic management practices.
In Africa, institutions are weak, and corruption is rampant.
The USD remains dominant and stable, unlike local currencies, some of which have lost over 50{aa99edd08dd66036bd4af6c3dbe8af9b4ab31fcc55a521c2956d094a6dcd3a48} against the greenback over the years.
For this reason, USD and its derivatives, like the USDT, remain a preferred choice of payment and store of value in many African countries.
EXPLORE: Mark Cuban’s Bitcoin Theory: Decoding Silicon Valley’s Support For Trump
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.