Hello,
Victoria from Techpoint Africa here,
Here's what I've got for you today:
- Rwanda plans to launch its CBDC by 2026
- Why this struggling YC startup isn't giving up
- Zone launches a blockchain-powered PoS payment gateway
Rwanda to launch its digital currency by 2026
Rwanda plans to create its own Central Bank Digital Currency (CBDC) within two years, offering a secure, free, and convenient alternative to conventional cash.
The CBDC is projected to boost financial inclusion by allowing more unbanked people to join the formal economy.
Other African countries, like Nigeria, Ghana, and South Africa, are either in the piloting phase or have already implemented CBDCs, which are driving the development.
In November 2024, the National Bank of Rwanda Governor, John Rwangombwa, announced the CBDC's development. A feasibility study was launched in May 2024 to investigate the possible benefits, dangers, and practicalities of establishing a retail CBDC in Rwanda.
So, Rwanda will conduct a proof of concept to test the technology, design, and speed on a limited scale once the public consultation process is completed in four weeks.
What’s more, the government plans to create a CBDC that is accessible offline, especially in places without Internet access or smartphones or during power outages.
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Why this struggling YC startup isn't giving up
Startup closures in Africa's tech sector have increased, with 10 to 15 startups closing shops in 2023. The majority of these firms raised millions of dollars in capital before closing.
Ben Eluan, co-founder and CEO of YC-backed Flux, has stated that, despite regulatory obstacles, the firm will not give up.
The company, created in 2020 by Eluan and Osezele Orukpe, intends to make cross-border transactions safer and cheaper.
Flux's concept of powering cross-border transactions in Africa appealed to investors, and the company was accepted into accelerators Pioneer in 2020 and Y Combinator in 2021.
However, Flux's ambition to become a $1 billion cross-border payments startup is hampered by one stumbling block: regulation. To learn about its struggles and survival tactics, read Bolu’s latest insights here.
Zone launches a blockchain-powered PoS payment gateway
Zone, an African payment infrastructure firm, has introduced a blockchain-powered PoS payment gateway product based on its payment platform.
The solution will help banks and fintechs facilitate payments by allowing transactions to be routed directly to issuers. Zone's decentralised payment switching network connects acquirers directly to issuers, resulting in faster and more reliable transactions.
As a CBN-licensed payment switch, Zone can perform direct transaction routing without breaking interbank payment regulations.
This move comes as Nigeria's regulator tightened regulations for PoS agents, requiring all 1.9 million of them to comply by July 2024.
The gateway will allow beneficiaries and their financial institutions to settle on the same day, to eliminate chargebacks and fraud on PoS terminals. How? By auto-refunding customers for unsuccessful transactions and auto-declining fraudulent chargebacks in real-time.
In case you missed it
- Unlock your startup’s potential: Craft an effective go-to-market strategy
- Here's what DEI looks like inside 2 Nigerian startups
- Ghana to increase 4G penetration by 65%, plans to build 4,400 4G and 5G sites in three years
- Parliamentary minority pushes back on Ghana’s exclusive 5G deal with Indian billionaire
- Liberia and Ghana are in talks to implement free roaming to reduce call cost
- After dismissing over 1000 employees, Copia Global stops taking orders in six Kenyan markets
- Bolt suspends 6,000 South African drivers for misconduct, 6 months after Nigerian suspension
What I'm watching
- A Catholic, Protestant, Atheist and Agnostic Discuss the Problem of Evil
- "You need a sprinkle of delusion to make it as a founder" — Olu Oyinsan, Man. Partner, Oui Capital
Opportunities
- Moniepoint is currently hiring for 63 positions in the United Kingdom and several Nigerian states, including Lagos, Abia, and Anambra. Check them out here to apply.
- If you have a small business in Nigeria, Kenya, or South Africa, apply for the Google Hustle Academy here.
- If you're a Product Designer and are looking for a remote role, check out this link for several roles.
- Several companies are looking for software engineers. Check out this link to work remotely with them.
- Check out this link for several remote Product Manager roles.
- Explore this website to find multiple job opportunities in Data that align with your preferences.
- If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.
Have a lovely Thursday!
Victoria Fakiya for Techpoint Africa.