In June, only a few months after rising to become President of Tanzania, Samia Suluhu Hassan directed the country’s central bank to begin working on a Central Bank Digital Currency (CBDC), even though the nation had previously issued a ban on cryptocurrencies in 2019. Before the end of the month, a spokesperson for the Bank of Tanzania made a statement to Reuters that “[t]he bank is working on the directives given.”
“The country’s central bank says that it is already adapting, despite the fact that 2019 guidance indicated that cryptocurrencies weren’t recognized by law. Within a few months of the new president’s transition into power, she is talking about radically changing the country’s view on cryptocurrency and digital assets. Within a month of those comments, the central bank has begun working on the directive. Now, how fast that process will go likely depends on the resources committed to the transition. But, it is worth noting that a nation has reversed course, then doubled down, on digital assets all in less than six months. For that reason, Tanzania’s development on this issue should be something worth following,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
“In the financial sector, we have witnessed the emergence of blockchain technology or cryptocurrency… Many countries in the world have not accepted or started using these currencies. However, I would like to advise the central bank to start working on those issues. Just be prepared,” President Hassan said during her remarks at the opening of a new central bank branch in June.
“Any leader directing such a rapid, radical departure from previous guidance has to believe that it will pay dividends in the future. It’s a smart play. Suddenly, the tech world is abuzz about Tanzania. When’s the last time that’s happened?” asked Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“If the government can pull off the rapid and successful development, testing, and execution of a central bank digital currency, it is going to turn heads, particularly if it is in conjunction with a more general change in policy and regulation over digital assets. The president is right. Digital assets are here to stay, and they are the future of finance. That means there will be industries built around supporting it. While Tanzania doesn’t have many of the more natural advantages that some other African nations enjoy in terms of infrastructure, a swift change in policy could kick start something that resembles a movement, and that could only improve the outlook for tech in Tanzania,” opined Gardner.
Top 10 Most Traded Cryptos in July
The growing number of investors continues choosing digital coins as an investment asset, with some cryptocurrencies drawing much more attention than others.
According to data presented by BlockArabia, besides Tether, Bitcoin, and Ethereum, as the world’s three most traded cryptocurrencies, some other crypto coins also witnessed an increased trading volume last month. Here is the list of the ten most traded cryptos in July.
Bitcoin Trading Volume Almost Halved, Ethereum Down by 43% in a Month
The CoinMarketCap data showed Tether still represents the most important coin in the crypto space, with a monthly trading volume of $1.48trn in July, nearly the same value as in June. Still, its market cap slightly dropped last month to $61.8bn, compared to $62.4bn on the first day of July.
Other top cryptocurrencies witnessed a significant drop in their 30-day purchase volume. During July, the price of the world’s most expensive cryptocurrency, Bitcoin, jumped by 26% reaching $41,963 last week. However, the trading volume of the leading crypto coin almost halved in the last 30 days, falling from around $1.2trn in June to $642.7bn in July.
Ethereum also witnessed a significant drop, with its monthly trading volume falling by 43% to $505.9bn in July. However, its market cap increased by almost 30% in this period, rising from $237.8bn to $303.5bn.
EOS, the fourth most-traded crypto in June, didn’t make it to the top 10 list last month. In fact, statistics show its trading volume plunged by 92% compared to June, falling from a massive $288.9bn to only $21bn.
Although its trading volume dropped by 25% to $194.4bn in July, Dogecoin still climbed one spot to the fourth most-traded crypto globally. Binance USD rounds the top five list with $125.2bn in monthly trading volume.
PlayDapp and WETH Trading Volume Surged in July
Statistics show significant changes in the other half of the list. Polygon, Bitcoin Cash, Chainlink, and Stellar, which all witnessed impressive trading volume in June, also didn’t make it to the top ten list last month.
The trading volume of XRP, the ninth most-traded crypto in June, plunged by 53% to $76.7bn. Still, the native cryptocurrency for products developed by Ripple Labs ranked as the seventh most-traded crypto in July.
The CoinMarketCap data showed that, compared to June, two new cryptos entered the most-traded list. With $92.8bn in monthly trading volume, PlayDapp ranked sixth on the list of most popular coins. Furthermore, statistics show the price of the token used in the PlayDapp Blockchain gaming ecosystem to purchase and sell NFT items within games, surged by 233% in this period, jumping from $0.1681 to $0.5608. WETH, or Wrapped Ethereum, ranked seventh on the list, with $61.7bn in 30-day purchase volume.
USD Coin and Ethereum Classic close the top ten list, with $55.8bn and $52.7bn in monthly trading volume, respectively.
Cash App’s Quarterly Bitcoin Revenue Triples Despite BTC Impairment Loss For Square
Jack Dorsey’s Square made more than 90 percent more gross profit than the same period last year, with $546 million coming from Cash App’s Bitcoin services.
Jack Dorsey’s Square has reported a 200 percent increase in Bitcoin revenue for the second quarter year-on-year (YoY).
The company announced the impressive earnings figures in its second-quarter shareholder letter on August 1. In the report, Square revealed its total gross profit grew 91 percent YoY to $1.14 billion.
Bitcoin services drove $2.72 billion in revenue for the app, with a gross profit of $55 million, respective increases of 210 percent and 223 percent respectively year-on-year. Cash App generated a gross profit of $546 million overall, up 94 percent YoY.
“Bitcoin revenue and gross profit benefited from year-over-year increases in the price of bitcoin and bitcoin activities, and growth in customer demand.”
However, compared to the first quarter of this year, Bitcoin revenue and gross profit decreased and is down 22.3 percent from 3.5 billion.
Square attributed the weaker performance to the more than 50 percent retracement suffered by the broader crypto markets during May and June.
Square also reported an impairment loss of $45 million on the Bitcoin it holds. As Tesla holds its Bitcoin (BTC) as an “intangible asset,” accounting rules require the firm to report an impairment loss when the asset’s price drops below its cost basis. Square is also not required to report increases in the value of its intangible asset holdings until the position is realized through a sale.
According to Bitcoin Treasuries, Square currently holds 8,027 BTC worth an estimated $320 million at the time of writing.
Square recently bought 3,318 BTC in February for $170 million, adding to its initial purchase of 4,709 BTC in October 2020.
On July 30, Cointelegraph reported that mobile software firm MicroStrategy pledged to buy more BTC despite an impairment loss of $425 million on its Bitcoin stash for Q2. Tesla also reported an impairment loss of $23 million for the quarter.
Yele Bademosi Steps Down as CEO of Bundle Africa
Yele Bademosi, the founder and CEO of the Nigeria-based crypto payments app Bundle Africa, is stepping down as the head of the company.
Bademosi announced his decision to step away from his current role in a blog post on Friday. He wrote that he intends to focus on driving digital currency adoption across Africa. He will be succeeded by Binance Africa director Emmanuel Babalola, at least on an interim basis.
“My focus for the next 12 to 18 months is really building infrastructure that can allow the inflow of capital to support innovation beyond the buying and selling of crypto,” Bademosi told said.
Bundle Africa launched last year with backing from global cryptocurrency exchange Binance, which contributed $450,000 in seed funding for the creation of the payments app. According to Bademosi, the app has about 350,000 users now. Bademosi, who grew up in Nigeria, was a former director of Binance Labs before creating Bundle.
Babalola is not only familiar with Africa’s crypto market. but he also knows how to navigate the global crypto sector comfortably, Bademosi said of his successor.
“[Babalola] is someone that I trust because we have the same mission and values, and I basically can’t imagine anybody else taking over,” Bademosi said.
Bademosi did not specify his future projects but said he has seen a lot of innovation in Africa’s crypto market in the last few months and there is a lot of room for innovation in social tokens, non-fungible tokens and peer-to-peer payments.
“I’m very excited,” Bademosi said.
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