Crypto Fest 2023 has launched in Cape Town, celebrating the next evolution of digital assets and local solutions.
International headlines may be applauding the fall of some of the early crypto superstars, but a strong presence at Africa’s crypto industry summit shows that digital solutions can still make a meaningful, positive difference on the continent.
Crypto Fest 2023 invited Web3 enthusiasts to experience Cryptopia at Cape Town’s exclusive Cabo Beach Club, and hundreds answered the call, a testament to the resilience of the community in the face of a harsh reality.
Hannes Wessels, General Manager of South and Francophone Africa at Binance – the Title Sponsor of Crypto Fest 2023 – reiterated the role of blockchain as a tool for innovation in the opening speech of the event. It also didn’t shy away from the news surrounding the company and former global CEO Changpeng Zhao.
“I know as much as you know, what we’ve all read in the news,” Wessels admitted before explaining that he can’t deal with matters related to the international company, only Binance’s local operations.
Business as usual
It’s still business as usual in Africa, and judging by the quality of the solutions presented at the African Web 3.0 Pitchfest, business is booming. The startup pitching competition was hosted in collaboration with CV VC, NODO and MZANSI WEB3 ICP.HUB SA.
Paie impressed the judges enough with a fully configured user-friendly application to access global financial services and came home with the top honors awarded by NODO.
The service is designed to make it easier for everyone, everywhere, to own global assets and build wealth. With the Paie app you can easily access global currencies through fiat-backed stablecoins, earn interest and grow your savings.
Innovations like this align with Crypto Fest’s mission to create an environment where users from all walks of life can interact with these life-changing technologies to create financial security.
And nowhere in the world are these solutions more needed than in Africa.
“Bitcoin dominates cryptocurrencies in sub-Saharan Africa because it is seen as a better way to hold wealth as a store of value,” explained Chainalysis Senior Solutions Architect Zakaria Ellaoui during his market insight session focused on the firm’s Crypto Index.
“Nigeria has seen a nine percent year-on-year increase in crypto transactions and there is significant demand for stablecoins across the continent because people see them as safer options. However, there is an appetite for risk. We have seen an increase in altcoins in the region.”
The road to regulation
Ellaoui highly praised South Africa’s efforts to enact crypto regulations and said the country is a leader on the continent in this regard. “It was a great move to license crypto businesses because we are seeing an migration of fintech startups to South Africa.”
Nonkululeko Musa Ntuli echoed his sentiments during her session, which unpacked Evolution from Web2 to Web3 in an easily accessible way. “Regulators want to control cryptocurrencies because that will bring about compliance and create stability. It’s not necessarily bad for the market.”
While South Africa’s recognition of crypto financial products was a big step in the right direction, there is still work to be done to legitimize the asset class as legal tender.
Gideon Rossouw, Web3 Enablement Executive at Nedbank said on the Future of Stablecoin Regulation panel discussion. “We as banks cannot take the risk because if we collapse, the economy will definitely be affected. Regulators are looking at it from the perspective of applying a level control commensurate with the impact on the market.”
Cryptocurrencies do not have widespread status as legal tender, but are considered assets in South Africa and can be offered to a creditor as a valid and legal tender of payment if you can find a seller who accepts crypto.
Lightning Network and related payment technologies have managed to fill the gap in retail acceptance of cryptocurrencies, there is a lot of growth happening in anticipation of future regulatory changes.
Cryptopia lives in Africa
Rossouw also addressed the challenges of creating a single stablecoin for the continent, suggesting that it may be a utopian idea, but the practical implementation would quickly become dystopian.
“There are currency blocks that you can see around the world, like the euro. Each country has different policies and fiscal processes, making it difficult to create a single currency for trade. Even in Europe it doesn’t work that well.”
In the heart of Cape Town, Crypto Fest 2023 emerged not only as a celebration of digital assets, but as a testament to Africa’s unwavering commitment to innovation. While global headlines may focus on the challenges facing cryptocurrency giants, the booming turnout at this premier industry gathering paints a different picture – one of resilience and determination in the African crypto community. Challenges aside, the crypto community is united, ready to turn conversations into reality and usher in a digital utopia that stretches far beyond the shores of the Mother City.
Cryptopia’s presence in Africa is not just a momentary affair. is a rising force that promises to grow stronger.
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