World News

Emtech to advance its regtech and CBDC stack solutions with $4M led by Matrix Partners India on August 3, 2023 at 8:08 am

Published

1 year ago

August 3, 2023

Emtech, an African provider of central banking infrastructure, introduced its Central Bank Digital Currency (CBDC) Innovation kit last month. The kit caters to fintechs and financial service providers interested in experimenting with solutions and business models based on digital currencies pioneered by central banks.

The New York-based business is today announcing a $4 million seed investment led by Matrix Partners India. It plans to further the development of this CBDC stack and that of its regtech solution. BTN, Vested, Equity Alliance and LoftyInc Capital are some of the other investors in the round. They join Emtech’s previous investors, including Noemis Ventures, Octerra Capital and 500 Global on its cap table. This round brings the four-year-old’s total investment to $10 million (including a $4 million pre-seed last year and a recent $2 million extension).

The CBDC Innovation Kit’s unveiling in July comes as no surprise. Last March, founder Carmelle Cadet said Emtech would deploy its first version of a CBDC platform this year. Emtech’s digital regulatory platform previously included the innovator’s center, which assists fintechs in preparing and testing requirements for numerous regulators and pre-market technological integration. The regulatory sandbox enables regulatory bodies to respond to innovations based on live testing results.

The four-year-old startup had hoped to work with at least 10 central banks by now. However, it is currently working with six. It has presently developed regtech and CBDC stack solutions for the Central Banks of Ghana, Nigeria and the Bahamas. That’s in addition to collaborating with fintechs in other countries to provide crucial regulatory and innovation insights.

“We’re the only company globally working with that many central banks at a time,” CEO Cardet told TechCrunch in a recent interview, stressing that Emtech had to open up its seed round, which took a year to complete, to follow through on the partnerships with these banks. “Like other companies, fundraising wasn’t easy because of the downturn and the FTX and Terra Luna saga. We had to manage our cash flow and resources and grow our footprint across the region while delivering for the central banks, especially now that we’re on a journey of digitizing cash infrastructure for them.”

Performance of local digital currency

Emtech also signed a collaboration deal with the West Africa Monetary Institute this June. In addition to establishing a joint central bank, the institute’s long-term objective is creating a single currency for the area. What more effective way to achieve the latter than through CBDCs? Central banks globally have been exploring and producing digital versions of their currencies for retail and wholesale use. This is to avoid leaving digital payments to the private sector as cash usage drops. With $10 trillion cash in circulation, the percentage of banks engaged in CBDC climbed from 80% to 93% in 2022. Also, according to a BIS survey, 24 central banks will have digital currencies in circulation by the decade’s end.

After raising $4 million, Emtech supports central banks across Africa, Caribbean to deploy regulatory sandboxes

Nigeria is one of just a few countries having an operational digital retail currency: the eNaira as it’s known. Yet, it’s had an abysmal acceptance despite the central bank’s incentives to make it appealing to its Nigerians. Earlier this year, the country’s cash scarcity — an ill-conceived government initiative to push for a paperless economy — demonstrated how much citizens disliked the eNaira. Per Bloomberg, less than 0.5% of Nigerians have utilized the eNaira since its inception two years ago.

The event showed that most Nigerians preferred waiting hours for cash rather than using digital money. However, Cadet feels that the eNaira’s implosion should not overshadow the relevance and benefits of CBDCs in general. “Although the eNaira was launched to major fanfare, there were missteps in planning, technology, and implementation. Most importantly, the architecture was not open to fintechs,” she stated. “What we’ve had the opportunity to do is present an alternative that is fintech-friendly. We think the fintech ecosystem has many untapped opportunities regarding CBDC.”

Deployment of the innovation kit

That’s where its newly released innovation kit comes in, she says. Emtech’s regulatory sandbox promotes relationships between central banks and fintechs regarding licensing required to go to market. Similarly, the CBDC innovation kit will provide these fintechs access to a digital cash infrastructure that banks may imitate.

Emtech’s simulated token “Beyond Cash (BYDC)” will be utilized for innovation initiatives, leveraging the Hedera Hashgraph as a layer 1 protocol and the ERC-20 (standard for tokenization). The CBDC Innovation Kit functions as a simulator accessible through APIs and a “bring your app” framework. Here, fintechs gain access to a CBDC simulator wallet BYDC and extract data from the ledger to test transactions and new business models. Emtech believes this route will close the gap observed in the current system between fintech innovation and central banking oversight.

“Our point of view has been consistent: enabling central banks to deploy their CBDC as a digital cash infrastructure safely. Imagine if the $13 trillion or more of paper cash floating worldwide was issued digitally, used and accounted for securely, in real-time and seamlessly. Imagine what fintech apps could do for their users. That’s truly exciting to us,” said the CEO, a former IBM blockchain executive, in a statement. Emtech has about 200 fintech companies on its waitlist, ready to work on the platform.

Digital assets and programmable currency in the form of regulated CBDCs, according to Aakash Kumar, principal at Matrix Partners India, may turbocharge financial inclusion in Africa. “Emtech’s vision of shaping blockchain-powered fintech infra for CBDCs and solutions for fintech regulation is compelling, and we are excited to partner with them on their journey,” he said on the firm’s investment in Emtech.

Film Industry

Jay-Z Denies Allegations Amid Lawsuit

Published

2 days ago

December 9, 2024

Bolanle Media Staff

Jay-Z, the renowned rapper and music mogul, faces serious allegations in a recently amended civil lawsuit. According to ABC News and NBC News, the suit accuses him and Sean “Diddy” Combs of raping a 13-year-old girl at an MTV Video Music Awards after-party in 2000.

The lawsuit, initially filed in October 2024, was updated on Sunday to include Jay-Z as a defendant alongside Combs. The plaintiff, identified only as “Jane Doe,” claims she was assaulted after being driven to the party following the awards show.

Jay-Z, whose real name is Shawn Carter, vehemently denies the allegations. He released a statement on X calling the lawsuit a “blackmail attempt” and questioning why it was filed as a civil case rather than a criminal one. The rapper expressed concern about the impact on his family, stating he and his wife Beyoncé would need to discuss the situation with their children.

Combs, who is currently in federal custody on separate charges, has also denied the accusations through his attorneys. The lawsuit alleges that an unidentified female celebrity was present during the incident but did not intervene.

The case has garnered significant media attention, with both artists’ reputations at stake. As the legal process unfolds, the music industry and public await further developments in this high-profile case.

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Business

David Sacks: The New White House AI and Crypto Czar

Published

5 days ago

December 6, 2024

Bolanle Media Staff

According to CNBC and NBC News, David Sacks, a prominent venture capitalist and former PayPal executive, has been appointed as the White House AI and Crypto Czar by President-elect Donald Trump. This newly created position underscores the incoming administration’s focus on artificial intelligence and cryptocurrency as critical areas for American competitiveness.

Role and Responsibilities

Sacks will be tasked with several key responsibilities in his new role:

Guiding policy for the administration in AI and cryptocurrency
Establishing a legal and regulatory framework for the cryptocurrency industry
Safeguarding free speech online, and steering away from Big Tech bias and censorship
Leading the Presidential Council of Advisors for Science and Technology

Trump emphasized that Sacks will focus on making America the clear global leader in both AI and cryptocurrency.

Background and Qualifications

David Sacks brings a wealth of experience to his new position:

Former Chief Operating Officer of PayPal
Founder of Yammer, which was sold to Microsoft for $1.2 billion in 2012
Co-founder of Craft Ventures, a venture capital firm
Investor in major tech companies including SpaceX, Palantir, Uber, and Airbnb

Sacks is also known for his close associations with tech entrepreneurs like Elon Musk and Peter Thiel, being part of the “PayPal Mafia“.

Political Involvement

Sacks has been a vocal supporter of Trump during his campaign:

Hosted a fundraiser for Trump at his San Francisco estate, with tickets priced at $50,000 each and a more exclusive $300,000 tier
Delivered a speech at the Republican National Convention in Milwaukee in July 2024
Wrote a detailed essay on X explaining his reasons for supporting Trump

Implications for AI and Crypto Industries

The appointment of Sacks signals a potential shift towards more crypto-friendly policies and regulatory clarity for the digital asset industry. This move, along with Trump’s nomination of crypto advocate Paul Atkins to head the Securities and Exchange Commission, marks a departure from the stricter oversight approach seen under the previous administration.

As the White House AI and Crypto Czar, Sacks is expected to play a crucial role in shaping the future of these rapidly evolving technologies in the United States, potentially influencing their development and adoption on a global scale.

Business

Bitcoin Surpasses $100,000 Milestone: A New Era for Cryptocurrency

Published

6 days ago

December 5, 2024

Bolanle Media Staff

In a historic moment for the cryptocurrency world, Bitcoin has officially surpassed the $100,000 mark, reaching a new all-time high and solidifying its position as a major player in the global financial landscape. This milestone comes amid a surge of investor enthusiasm and significant market developments.

The Breakthrough

Bitcoin breached the $100,000 threshold in the early hours of December 5, 2024, climbing to approximately $103,000 before experiencing a slight pullback, according to BBC News. This remarkable achievement represents a culmination of Bitcoin’s impressive performance throughout 2024, with the cryptocurrency’s value on an upward trajectory for most of the year.

Factors Driving the Surge

Several key factors have contributed to Bitcoin’s meteoric rise:

Political Influence: The recent U.S. presidential election, with Donald Trump’s victory, has played a significant role in boosting Bitcoin’s price. Trump’s pro-cryptocurrency stance and his promise to make the U.S. a “crypto capital” have fueled investor optimism, according to BBC News and AP News.
Regulatory Developments: According to AP News, the imminent appointment of Paul Atkins, a former SEC commissioner known for his crypto-friendly views, as the next chair of the Securities and Exchange Commission has been seen as a positive sign for the cryptocurrency industry.
Institutional Adoption: According to BBC News, the approval of spot Bitcoin exchange-traded funds (ETFs) by the SEC has allowed major investment firms like Blackrock, Fidelity, and Grayscale to offer Bitcoin-linked products, attracting billions in investments.
Market Dynamics: The recent Bitcoin halving event, which reduced the rate of new Bitcoin creation, has contributed to increased scarcity and demand.

Expert Opinions and Predictions

Analysts and industry experts have weighed in on Bitcoin’s future prospects:

Dan Coatsworth, an investment analyst at AJ Bell, described the $100,000 milestone as a “magic moment” for Bitcoin.
Ryan Lee of Bitget Research suggested that Bitcoin’s momentum could propel it well above $100,000 by the end of the year, citing historical patterns and post-halving cycle trends.
Bitfinex analysts expect Bitcoin to continue accumulating and ranging, with potential for further growth in the coming months.

Cautions and Considerations

While the mood is largely optimistic, experts also urge caution:

Carol Alexander, a finance professor at Sussex University, warned that while Bitcoin’s price may continue to rise, many younger investors speculating on meme coins are facing losses.
According to BBC News and AP News, the cryptocurrency’s notorious volatility remains a concern, with some analysts reminding investors that Bitcoin does not function like conventional currencies and lacks traditional investor protections.

Looking Ahead

As Bitcoin enters this new phase, the cryptocurrency community is abuzz with speculation about its future trajectory. While some predict further gains, others caution against overexuberance. The coming months will likely be crucial in determining whether Bitcoin can sustain its position above $100,000 and potentially reach even greater heights.

With increased institutional involvement, evolving regulatory landscapes, and growing mainstream acceptance, Bitcoin’s journey past the $100,000 mark may well be just the beginning of a new chapter in the cryptocurrency’s history.