Innovation in Kenya is like. . .

Innovation in Kenya

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What is driving Kenya’s Bitcoin demand?

 

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Enterprising young Kenyan have figured out they can use bitcoin as a payment mechanism to take part in global online commerce . They buy bitcoin from a peer to peer market (here) and use it to pay for stuff online. For as little as 200 KES, they can purchase $ 2 worth of Bitcoin to make micro payments to their favorite sports bet pickers.

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Emerging Regulatory Issues on Digital Currencies in Kenya

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A couple of days ago I perused the Kenyan NATIONAL PAYMENT SYSTEM ACT (No. 39 of 2011)THE NATIONAL PAYMENT SYSTEM REGULATIONS, 2014 (pdf). My interest was the legal stance on issuance of P2P exchangeable assets, such as loyalty reward points in Kenya, on the bitcoin blockchain – a decentralized network. At Umati Blockchain Ltd, we are exploring using the coloured coins protocol (for now)  for issuing freely exchangeable loyalty points, with all the ease, nifty features and security of the bitcoin blockchain.

It seems, to me, digital currencies such as bonga points, and cryptocurrencies such as bitcoin, fall in a gray area. They do not fit the strict definition of E-money under Kenyan law. Perhaps why, late last year, the Central bank of Kenya admitted via a public notice ‘Virtual currencies such as Bitcoin are forms of un-regulated digital currency not issued or guaranteed by any government or central bank.’ I subsequently wrote a rebuttal to this notice.

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My takeaways from E-payments panel at Connected 2016

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I was delighted to sit on an electronic payments and the future of cash panel at the connected 2016 conference. As co-founder and Chief Analyst at Umati Blockchain ltd., my invitation scope was Bitcoin, virtual currencies and the blockchain. It was great getting feedback from the audience, on what is wrong with Kenya’s cashless transition. A healthy nuance of talking points emerged from the mixed backgrounds of the panelists.

Here is a 30 min edited video of the panel session

These were my takeaways

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Why we should Slay Mpesa, and save the town

article2Kenya and east africa’s mobile money systems are overly reliant on Telco’s networks and SIM modules. The status quo is detrimental to Banks, Non-banking financial institutions and a whole host of digital token value services e.g sports betting and prepaid electricity tokens.

Telcos, now Mobile Money Operators, are a Banks wet dream. Peer to peer money transfers in Kenya almost always route through a mobile network operator’s SMS, SIM card and USSD channels; they are the gatekeepers.
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