January 31, 2022 Newsletter

✈The Great crypto mining migration continues...

January 31, 2022

January 31, 2022

Good morning, EmergingCrypto.io subscribers. Thank you for your support and being one of the lucky subscribers to get the first edition of our weekly newsletter curated for you to catch you up on emerging market blockchain and crypto news from the last week. Have a great week!

EmergingCrypto.io Weekly Update January 23 - 29

Asia

Image Credit: Forzaalisherka via Unsplash

Great Crypto Mining Migration leads some out of Kazakhstan (Forkast, 1/26/22)

The news cycle moves quickly but let's not forget that earlier this month there was a lot of coverage of the unrest in Kazakhstan over inflation and energy costs, and for those of us following crypto, the impact this had on crypto mining. Kazakhstan, along with the USA, became a darling in the crypto mining world after China banned crypto mining and drove miners out of the country. Many miners chose to go neighboring Kazakhstan given its vicinity to China and relatively inexpensive energy that turned this Central Asian energy giant into the second largest Bitcoin mining hub. However, after this month's unrest and power shortages, the great mining migration continues, now out of Kazakhstan. Where to next? More miners are moving to the USA and Russia. (Read on EmergingCrypto.io; Read on Forkast) 

UAE Ministry of Health launches Metaverse Happiness center (UNLOCK Blockchain, 1/26/22)

The Metaverse is currently one of the hottest buzzwords in the world of blockchain and crypto with companies from Meta to Walmart working to be early innovators in what might be a Ready Player One-esque future. Last week the United Arab Emirates Ministry of Health and Prevention (MoHAP) launched the world’s first Metaverse customer happiness service center at the Arab Health 2022 exhibition. What may be part of the future of healthcare, MoHAP's customer happiness service center is expected to allow customers to request information, submit documents, pay fees, and provide a tangible solution for someone who may not be able to move physically from their home to participate in the healthcare system. MoHAP's MetaHealth platform is expected to launch at some point in mid-2022. (Read on EmergingCrypto.io; Read on UNLOCK Blockchain)

Africa

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M-PESA is the Preferred Remittance Channel for Kenyans Living Abroad, Says Latest Central Bank of Kenya Survey (BitKE, 1/24/22)

Remittance payments are a popular blockchain and crypto use case and an important contributor to economic activity to many emerging economies. While the remittance blockchain use case continues to incubate (e.g., Stellar and MoneyGram), there are many existing companies for people to choose from when sending and receiving fiat-based remittances. M-Pesa is one of the OGs when it comes to mobile remittance payments in Africa and the latest Central Bank of Kenya survey indicated that M-Pesa is the preferred channel for remittance payments in 2021 in Kenya. One of the main challenges with remittance payments that people face are the fees they pay to send money to loved ones around the world. In Kenya, the average cost for remittance payments is roughly between 4-6%. Supporters of crypto and blockchain based remittance payments cite both lower fees and faster settlement of payment. At the moment, M-Pesa is one of the on/offramps to P2P crypto exchanges in Africa but M-Pesa hasn't ventured into P2P crypto payments…yet. (Read on EmergingCrypto.io; Read on BitKE) 

A Look at Fonbnk – A Decentralized App Enabling Africans Onramp into DeFi via Mobile Airtime (BitKE, 1/24/22)

Banking the 1.7b globally unbanked is a challenge that many countries and companies both in developed and developing markets are working to solve. Where access to banking may be a problem in many, especially rural, places around the world, Internet and mobile access has penetrated further and faster than banking, giving people access to mobile-based services and solutions. Combined with DeFi, blockchain is a use case to help the unbanked have access to financial services. Fonbnk is a very clever mobile-based solution that empowers its users to convert their excess airtime for digital currency. By using

and can transact with a network of airtime liquidity providers on Fonbnk to convert airtime for the USD-pegged MIN token. From here, users can then convert their MIN back to airtime, fiat, and crypto. Innovation at its finest,

. (Read on

; Read on

)

Eastern Europe

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Russia, the 3rd-Largest Bitcoin Mining Country Globally, Wants to Ban Crypto Mining (BitKE, 1/27/22)

Russia has been dominating headlines this past week, from a potential invasion of Ukraine to banning crypto country-wide. The Central Bank of Russia released a consultation paper providing the latest official Russian perspective on crypto. The overall sentiment was not favorable, indicating that the "rapid growth of their market value is predominantly spurred by speculative demand and expectations of a further rise in their exchange rates, which is creating a bubble in the market. Cryptocurrencies also have signs of a financial pyramid as an increase in their prices is largely driven by demand demonstrated by new market participants."

The paper also proposes amendments to Russian legislation and recommended fines for using crypto as a means of payment for goods and services, prohibiting companies (e.g., exchanges and P2P platforms) from issuing or circulating crypto, prohibiting financial institutions from investing in crypto or related financial instruments, and the use of Russian financial intermediaries and financial infrastructure to conduct cryptocurrency transactions.

Furthermore, the paper also references crypto mining power consumption as "unproductive" and "threatens the power supply of residential buildings, social infrastructure and enterprises and the implementation of Russia’s environmental agenda." All of this comes on the heels of Kazakhstan's great mining migration and the consideration of Kazakhstan-based miners to relocate to Russia, which recently accounted for 11.2% of the Bitcoin hashrate behind Kazakhstan and the United States, making Russia the third largest bitcoin mining country. Russian government sentiment toward crypto has historically been hawkish and this report is released at a time when Russia is testing its own CBDC. (Read on

; Read on

)

Latin America

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IMF Urges El Salvador To Ditch Bitcoin (Bitcoin Magazine, 1/25/22)

Meanwhile, in El Salvador the IMF is likely not as excited as President Bukele over the country's recent BTC acquisition. The IMF's press release last week commented on the Central American country's adoption of BTC as legal tender and its Executive Board Assessment "stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities" and "urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status. Some Directors also expressed concern over the risks associated with issuing Bitcoin-backed bonds." El Salvador's bold move to adopt Bitcoin as legal tender continues to fuel the showdown between its pioneering move and the need for capital as the IMF effectively tries to impose conditions on granting the country a loan. (Read of EmergingCrypto.io; Read on Bitcoin Magazine) 

Socios says it’s blocked Argentina football’s fan token deal with Binance (Ledger Insights, 1/28/22)

And lastly, Binance continues its marketing blitz this last week in Latin America with it's sponsorship of the Argentine Football Association (AFA). The five year sponsorship deal will cover both the national teams, the AFA's official fan token, and Binance will become the top tier league's naming sponsor. However, fan token company Socios is crying foul and wants a red card for this deal, claiming breach of contract of the three year deal it signed with the AFA last June 2021 that included naming rights and a fan token. Last Thursday Socios announced that an injunction was issued ordering the AFA and Torneos y Competencias to recognize the agreement they signed with Socios. What happens next is in the works, but it only adds to Binance's laundry list of challenges it has faced as of late around the world. (Read on EmergingCrypto.io; Read on Ledger Insights)