šŸ”“NFTs Shaking up Netflix, šŸ”Blockchain Powered Affordable Housing, šŸ’øSingaporeā€™s Temasek Pays for FTX Misstep

June 03, 2023

Your 5 minute emerging markets web3 weekly update

In This Issue

Latin America and the Caribbean
šŸ”øNFTs May Soon Be the Reason Why You Canā€™t Use Your Momā€™s Netflix Password
šŸ”øTether Enters the Renewable Energy Business in Uruguay, Ventures Into Sustainable Bitcoin Mining Project

Africa
šŸ”øBlockchain Enabling Access to Affordable Housing in Mozambique
šŸ”øNigeria Approves National Blockchain Policy, Cementing Tech Hub Status

Asia
šŸ”øSingaporeā€™s Temasek Slashes Compensation Over Failed FTX Bet
šŸ”øNo Longer the Wild Middle East, UAE Central Bank Issues New AML/CTF Guidance for Crypto

Eastern Europe
šŸ”øRussia Pivots Regulation Strategy, Abandons Plans for National Crypto Exchange
šŸ”øDespite Sanctions and Tight Regulations, Crypto Usage in Russia Reaches 13 Million People

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Latin America and the Caribbean

Image Credit: Dima Solomin via Unsplash

Brazilian startup H3aven has proposed a blockchain-based solution, called Tokenized Access Control, to address the issue of password sharing on platforms like Netflix and Spotify. The solution involves creating a dynamic non-fungible token (NFT) layer for user credentials, ensuring privacy and preventing unauthorized sharing. The startup's technology also offers additional benefits such as data encryption, secure transactions, and the potential for businesses to anticipate revenue through smart contracts without relying on traditional intermediaries.

Stablecoin issuer, Tether, has announced its investment in renewable energy production to establish sustainable bitcoin mining operations in Uruguay. The decision is driven by Uruguay's high proportion of renewable energy, with 94% of the country's energy coming from renewable sources like wind and solar. Tether believes that by utilizing Uruguay's abundant renewable resources, it can lead the way in environmentally friendly bitcoin mining, maintaining the security and integrity of the Bitcoin network while minimizing energy consumption.

Africa

Image Credit: Blake Wheeler via Unsplash

Empowa, a Cardano-based FinTech, aims to address the challenge of accessing mortgage loans for individuals with informal incomes in Africa through its lease-to-own model enabled by blockchain technology. Empowa utilizes on-chain payments and NFTs to enable funding for affordable housing, allowing low-income individuals to buy homes on lease through its Empowa Trade app, with capital provided by accredited investors. The company's successful pilot project in Beira, Mozambique, led to the initiation of a larger project called 'Catalyst' in partnership with the Municipality of Beira to provide finance for climate-smart affordable homes for 25,000 families.

The Federal Executive Council of Nigeria has approved the National Blockchain Policy, institutionalizing blockchain technology in the country and aiming to create a blockchain-powered economy that supports secure transactions, data sharing, and value exchange to foster innovation, trust, and growth. The policy aligns with Nigeria's National Digital Economy Policy and Strategy and is expected to have a positive impact on the public and private sectors. With this approval, Nigeria joins other leading countries in adopting blockchain technology at the national level, enhancing its position as a technology hub in Africa and attracting investments in the digital economy sector.

Asia

Image Credit: Edgar Su via Reuters, Cointelegraph via Wikimedia Commons

Singapore's Temasek Holdings has reduced the compensation of its investment team and senior management as a result of its failed investment in the collapsed FTX cryptocurrency exchange. The decision was made to take collective accountability, following an internal review that found no misconduct but expressed disappointment in the outcome and the negative impact on Temasek's reputation. Temasek, one of the world's largest state investors, wrote down its entire $275 million exposure to FTX after the crypto company's collapse.

The UAE Central Bank has issued new guidance on anti-money laundering and counter-terrorism financing for financial institutions dealing with virtual assets like cryptocurrencies and non-fungible tokens. The guidance focuses on the risks associated with virtual assets and service providers, outlining due diligence requirements for licensed financial institutions in their dealings with customers and counterparties. The guidance, which aligns with Financial Action Task Force (FATF) standards, applies to various entities including banks, finance companies, and payment service providers, and will be effective within a month.

Eastern Europe

Image Credit: Emrahkarakas via Pixabay

Russia has abandoned its plan to launch a national cryptocurrency exchange and instead aims to regulate multiple crypto trading platforms, according to State Duma member Anatoly Aksakov. The move comes after the Ministry of Finance and other authorities did not support the idea of a unified exchange. Instead, Russia plans to set rules for creating and managing crypto platforms to facilitate cross-border transactions between exporters and importers and help businesses avoid sanctions, with the central bank likely to be the main regulatory authority overseeing the exchanges.

Cryptocurrency usage in Russia has reached 13 million people, with a daily turnover exceeding 10 billion rubles, according to Anatoly Popov, deputy chairman of Sberbank. However, there is a limitation in Russia that restricts the purchase of crypto using non-cash methods, requiring users to physically visit an exchange and use cash. Despite this limitation, about 20,000 cryptocurrency wallets in the country conduct daily transactions.

Thanks for reading and have a great week ahead!

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Written by Jon Lira. Connect with him on LinkedIn.

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