BitcoinKE

Creditors of the collapsed Bitcoin scheme Mirror Trading International (MTI) have filed an urgent application in the Cape High Court, seeking to restrain and ultimately remove the joint liquidators amid mounting concerns that estate assets are being depleted by prolonged legal costs and overseas litigation.

The UK-based group of MTI creditors wants the court to bar the liquidators from incurring further legal fees in the United Kingdom and to either remove them from the MTI estate or place them under tighter supervision.

The urgent application is set to be heard later this week.

REGULATION | South African MTI Liquidators Secure Legal Authority to Reclaim the Value of All Bitcoin Withdrawals from Defunct Scheme

Half of Recovered Assets Already Spent, Creditors Say

According to court filings, the liquidators have already reportedly expended roughly half of the approximately R1.1 billion in assets recovered from MTI – funds originally recovered in bitcoin before being sold — largely on UK legal proceedings. The creditors allege that continued litigation across borders risks “further expenditure of estate cash” measured in the tens to hundreds of millions of Rand over the next 12–18 months.

They argue the liquidators, who receive a 10% fee on all recoveries plus legal and administrative costs, may have an incentive to prolong litigation even where the chances of success appear limited. This, they say, is contrary to the fiduciary duties owed to the broader body of creditors.

 

Legal Strategy Under Scrutiny

The dispute centers on claims issued in the U.K against thousands of MTI creditors – many of whom are being pursued for bitcoin withdrawals they previously made from the scheme. Creditors argue that these claims have prescribed under South African law and should no longer be enforceable, pointing to the Prescription Act and the timing of when the liquidators obtained key transactional data.

Liquidators plan to defend their position, asserting that investigations have not yet concluded and that prescription does not begin until data validation and expert analysis are complete. The sides are expected to argue these points before the court.

LEGAL | Investors in MTI, South Africa’s Largest Bitcoin Ponzi, Resist Repayment Demands from Liquidator

MTI’s Collapse and Ongoing Fallout

MTI was once one of the largest Bitcoin-linked investment schemes in South Africa and globally, with more than 29,000 BTC funnelled through its operations on the promise of up to 10 % monthly returns — returns ultimately found to be non-existent.

South Africa’s Mirror Trading International (MTI) Was By Far 2020’s Biggest Scam Globally, Says Chainalysis 2021 Crypto Crime Report

The scheme collapsed in late 2020 after withdrawal demands outpaced available liquidity, and its founder, Johann Steynberg, fled to Brazil; he reportedly died in 2024 while awaiting extradition.

South Africa Crypto Fugitive Behind the MTI Crypto Scam Feared Dead, Buried in Brazil

The prolonged liquidation has been marked by repeated court challenges from both creditors and investors, including disputes over how recovered assets should be distributed and whether liquidators have acted in the best interests of the estate.

REGULATION | United States CFTC Concludes Case Against MTI, a South-African Bitcoin Scam, Imposes $1.7 Billion Restitution to Victims

The upcoming hearing will determine whether the Cape High Court will grant interim relief stopping the liquidators from further U.K legal action, and ultimately whether they should be removed or placed under supervision under South African insolvency law. Interested parties and legal observers are watching closely, as the case may set a precedent for how cross-border crypto insolvencies are handled in the region and on the African continent.

FTX Creditor Motion to Limit Crypto Payouts to 49 Foreign Jurisdictions, Including Africa, Withdrawn

 

 

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YouTube has quietly taken a major step into crypto payments, integrating PayPal’s PYUSD stablecoin into its creator payout system – one that has distributed over $100 billion to creators in the last four years.

The update gives eligible U.S. creators an opt-in way to receive earnings without relying entirely on banks, using regulated stablecoin infrastructure rather than direct blockchain handling by YouTube itself.

Instead of building crypto rails internally, YouTube routes PYUSD payouts through PayPal’s existing payment stack, allowing creators to access digital dollar payments while remaining inside familiar AdSense workflows.

PayPal Pushes Crypto, Stablecoin Payments into the Mainstream, Cutting Costs and Expanding Global Commerce

A $25 Billion-Per-Year Payout System Meets Stablecoins

YouTube’s monetization engine pays out roughly $25 billion annually to creators through AdSense and AdSense for YouTube, making it one of the largest recurring payout systems in the global digital economy.

With the addition of PYUSD, creators can now select a stablecoin payout option via PayPal Hyperwallet, the same system Google has long used to distribute creator earnings worldwide.

PayPal’s Head of Crypto, May Zabaneh, confirmed the integration, and both Google and YouTube have acknowledged PYUSD as an available payout destination for eligible creators in the U.S.

While YouTube does not custody crypto or interact directly with blockchain networks, PayPal manages the crypto component within its regulated environment.

PayPal Obtains Full Crypto License and Opens App to Transact with Other Crypto Wallets

How Creators Can Move YouTube Earnings On-Chain

Although PYUSD appears inside YouTube’s standard payout settings, creators are not locked into PayPal’s ecosystem.

According to PayPal’s help documentation, PYUSD can be transferred to external wallets, allowing creators to move earnings on-chain, convert to other digital assets, or self-custody funds if they choose.

This structure gives creators access to crypto payments without requiring YouTube to integrate wallets, private keys, or blockchain infrastructure, keeping compliance and risk management within PayPal.

MILESTONE | PayPal’s PYUSD Stablecoin Surpasses $1 Billion Market Capitalization – Doubling Since Start of 2025

Why This Matters Beyond YouTube

The integration marks one of the clearest examples yet of stablecoins entering mainstream internet payments at scale.

Rather than positioning crypto as a speculative asset, YouTube’s PYUSD rollout frames stablecoins as payment infrastructure, embedded directly into everyday creator income.

As regulators continue shaping rules for payment stablecoins, YouTube’s approach offers a blueprint for how major platforms can adopt crypto without becoming crypto companies themselves – by relying on established financial intermediaries to handle custody, compliance, and settlement.

For creators, the result is a new payout rail that offers speed, optional self-custody, and reduced dependence on banks, all within YouTube’s existing monetization system.

STABLECOINS | Circulation of Stablecoins Doubled in the Past 18 Months, Says McKinsey

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The Office of the Comptroller of the Currency (OCC) has announced its conditional approval of five national trust bank charter applications. Subject to meeting the OCC’s conditions, these institutions will join approximately 60 other national trust banks currently supervised by the OCC.

In granting these conditional approvals, the OCC applied the same rigorous review and standards it applies to all charter applications. The OCC carefully reviewed each application, based on its individual merits, consistent with applicable statutory and regulatory factors. 

“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,” said Comptroller of the Currency Jonathan V. Gould.

“They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system. The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy.”

REGULATION | The Office of the Comptroller of the Currency (OCC) Clears National Banks to Act as Intermediaries in Crypto Transactions

The OCC conditionally approved applications for de novo national trust bank charters for:

First National Digital Currency Bank (by Circle) and

Ripple National Trust Bank.

The OCC also conditionally approved applications to convert from a state trust company to a national trust bank for:

BitGo Bank & Trust National Association,

Fidelity Digital Assets National Association and

Paxos Trust Company, National Association.

The federal banking system includes more than 1,000 national banks, federal savings associations, and federal branches of foreign banking organizations operating in the United States that range in size from 1,000 smaller community banks under $30 billion in assets focused on meeting local needs to the largest internationally active banks.

These banking companies conduct a wide array of businesses that range from retail and wholesale banking activity to trust, credit card and other more narrowly focused services.

The institutions that make up the federal banking system conduct approximately 67 percent of the banking activity in the United States, hold more than $17 trillion in assets combined and administer more than $85 trillion under their control.

OPINION | Why We Will See 1,000 Stablecoins (and Why Most Will Fail)

 

 

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South African payment and logistics experts forecast robust local digital commerce and rising crypto adoption in 2026, but warn of ongoing U.S tariff headwinds for global exporters.

Although card payments will remain dominant, there is a strong drive towards alternative (non-card) payment mechanisms in South Africa, says Rahul Jain, CEO of African payment gateway, Peach Payments. 

 

Says Carel van Wyk, CEO of Bitcoin and crypto payments solution provider, MoneyBadger:

“The need for alternative payment options has been evident in consumer surveys over the past few years but it seems to be finally resulting in substantial change in merchant behaviour.

This has been driven by changing consumer appetites and the need to serve the country’s lightly banked population better.”

 

 

Key developments include the first in-the-wild implementations of PayShap Real Time Payouts (RTP), which commenters say will result in it being more broadly available to consumers.

 

Van Wyk says he is optimistic that a mainstream retailer will adopt in-store PayShap RTP transactions soon.

“We also expect a sharp increase in the availability of Bitcoin payments, after the public success of Pick n Pay’s introduction of the payment method two years ago,” he comments. 

 

Jain says businesses and consumers are increasingly adopting modern payment methods, a trend he expects to continue.

“Buy Now Pay Later (BNPL) and other retail credit options are increasingly available to consumers,” Jain says.

“This comes on the back of improved awareness of security and trust among consumers for established payment brands. In addition, social commerce conducted via Instagram and WhatsApp, for instance, will continue to drive adoption of non-traditional shopping platforms.”

 

International Trade Faces Headwinds

Global trade remains under strain, and for South African companies operating internationally, tariff instability continues to shape the business landscape.

 

Says Aretha Cooper, COO of international shipping platform TUNL:

“We anticipate that the impact of the current U.S tariff regime on South African exporters will persist.

Ongoing uncertainty around tariff policy – despite the recent Supreme Court appeal – and the slow pace of negotiations between our governments suggest that these conditions will continue to shape global shipping operations for some time.

Tariffs are now part of everyday conversation globally, not just in the United States. Consumers across markets have begun questioning the cost structures behind the goods they purchase, and this heightened scrutiny has the potential to influence demand patterns and slow global trade more widely.”

 

The outlook for intra-SADC commerce is brighter, however. Says Jain:

“We expect Mauritius to continue to experience phenomenal growth, for a number of reasons, including online payments being more widely accepted and trusted, especially in the travel sector.”

 

Digital Growth and Regulatory Clarity

The domestic South African economy appears robust going into 2026. Still, the payments experts anticipate major shifts in technology, digital commerce volumes, and regulations.

Van Wyk expects more consumers will use Bitcoin and crypto as a mechanism to hedge against currency fluctuations. This will also make them more keen to pay for day-to-day expenses using Bitcoin. 

In addition, he anticipates regulatory clarity from the SA Reserve Bank to unlock crypto as a viable alternative to SWIFT for international payments.

PRESS RELEASE | Scan to Pay Enables Direct Crypto Payments Through MoneyBadger Integration to Over 650,000 Merchants in South Africa

Jain predicts online retail will reach 10% of all retail in 2026.

“In particular, the online travel industry will continue to grow at a steady pace, specifically because of the greater adoption of alternative and local payment methods,” Jain comments.

 

Cooper agrees that South Africa locally appears to be robust and there is no reason why that trend should not continue.

“However,” she notes, “we do see a general worsening of demand from international shoppers for local exports based on the tariff changes that have happened. The SME Export Index* shows we should expect this diminished demand to continue and likely increase in 2026.

We may still get some tariff clarity from the U.S Supreme Court of Appeals’ ruling on the new tariffs, but we’re not holding our breaths.”

REPORT | South Africa’s Online Retail Sector Outpacing Physical Retail by 10x – Crypto is Least Preferred Payment Option

 

 

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[PRESS RELEASE]

Orange Money Group and VISA announce a strategic partnership aimed at accelerating online payments and democratizing access to financial services across Africa and the Middle East.

Already successfully deployed in Botswana, Madagascar, and Jordan, where the partnership is renewed, the virtual VISA card has been recently launched by Orange Money Côte d’Ivoire. This launch was a success and perfectly illustrates the shared vision with VISA for a more inclusive and accessible financial ecosystem.

HOW TO | How To Transfer Money From Bank Account To Orange Money In Botswana

This partnership marks a new milestone in the shared ambition of the two companies: to provide millions of users with a simple, secure, and internationally recognized payment solution.

Building on the success in these countries, it will be gradually rolled out to new markets such as Guinea, Burkina Faso, and the Democratic Republic of Congo.

Directly accessible from the Max it app, the Orange Money Visa virtual card allows users to instantly create a card that can be funded anytime from their Orange Money account, enabling secure online payments on local and international websites. A physical card will also be made available at authorized Orange Money points of sale at a later stage.

Orange Money is proud to partner with VISA, given its global expertise in secure digital payments and its extensive international acceptance network – ensuring Orange Money users enjoy a seamless and trusted payment experience wherever they are.

For Orange Money, this partnership is fully aligned with its mission to promote financial inclusion – simplifying access to digital services and empowering everyone to participate fully in the digital economy, regardless of their country or device.

 

 

Thierry Millet, CEO, Orange Money Group comments:

“Thanks to Orange Money, our 45 million customers can make everyday payments at millions of physical retail locations and with online merchants in their country. Whether they are individuals or entrepreneurs, they can now create their virtual Visa card in just a few seconds and make international online payments across the Visa network.

This is the first step in this strategic partnership, which will help make Orange Money a widely accepted payment method, from major online platforms to local neighborhood merchants.”

LAUNCH | VISA Pay Launches Across the Democratic Republic of the Congo (DRC) in Partnership with 8 Financial Institutions

Ismahill Diaby, Vice-President, General Manager – Western and Central Francophone & Lusophone Africa, Visa comments:

“We’re excited to partner with Orange Money to bring the advantages of the digital economy to millions of people across Africa.

By combining Visa’s trusted technology with Orange Money’s local reach, this partnership offers a simple, secure way for more people and small businesses to pay online – helping them participate confidently in everyday commerce.”

With over 173 million customers and 45 million active accounts across 17 countries in Africa, Orange continues to drive digital and financial transformation across the continent, supported by VISA’s trusted technology.

REPORT | ‘There is Growing Stablecoin Usage for Non-Crypto Activities in Emerging Markets,’ Says VISA

 

 

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The Office of the Comptroller of the Currency (OCC) has officially cleared the way for national banks to act as intermediaries in crypto transactions under a ‘riskless principal’ model. That means banks can buy crypto from one customer and immediately sell it to another – without ever holding the assets on their own books.

In practice, this opens the door for regulated banks to offer crypto-brokerage services, bridging traditional finance and digital assets. The OCC clarified these activities are now considered part of the ‘business of banking,’ as long as banks manage compliance, credit risk, and operational safeguards properly.

This marks a shift toward mainstream integration of crypto: instead of relying only on unregulated exchanges, customers might soon access crypto trading via familiar banks – likely with stronger oversight, security, and regulatory protections.

But the change also raises important questions:

Will this steer crypto toward more centralization under big financial institutions?

Will smaller exchanges and decentralized platforms be squeezed out?

Could this reshape how everyday users buy or hold crypto in a meaningful way?

Overall: a potential turning point for crypto adoption – one that could reshape the bridge between traditional finance and digital assets.

BANKING | 31% of Kenyan Banks Signal Openness to Facilitate Virtual Assets Transactions, Central Bank of Kenya Survey Shows

 

 

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Stripe and Paradigm’s stablecoin-focused blockchain Tempo has launched its first public testnet, marking a significant milestone in its path toward becoming a full-fledged layer-1 blockchain. The open-source testnet is now live, allowing anyone to ‘run a node or sync the chain’ to experiment with its features.

Tempo’s public testnet currently supports a suite of key features:

Dedicated payment lanes

Stablecoin-native gas

Built-in decentralized exchange for stable assets

Support for payments and transfers metadata

Fast deterministic finality, and

Modern wallet signing methods.

According to Tempo’s developers, the goal is to deliver instant, deterministic settlement, predictably low fees, and a stablecoin-native experience – features that many general-purpose blockchains struggle to offer in the context of financial applications.

 

“Tempo is built to deliver instant, deterministic settlement, predictably low fees, and a stablecoin-native experience, which are qualities that most general-purpose blockchains still struggle to provide for financial applications,” Tempo said.

 

An interesting feature highlighted by the CTO of Paradigm was the ability of users to create new stablecoins straight from their browser, part of the ‘Tempo’s superpowers,’ as he put it.

Tempo lets you create a new stablecoin straight from your browser.

Interactive tutorials in the docs to make you fully experience Tempo’s superpowers. pic.twitter.com/ygnSEF31wp

— Georgios Konstantopoulos (@gakonst) December 9, 2025

The public testnet comes roughly four months after Tempo was first unveiled, and only a few months after the project raised $500 million in a Series A funding round that valued it at $5 billion. Early ‘design partners’ include major names such as:

OpenAI

Deutsche Bank

Standard Chartered

Shopify

and new partners like:

Mastercard

UBS

Klarna, and

Kalshi

among other partners.

Tempo’s testnet is live!

Any company can now build on a payments-first chain designed for instant settlement, predictable fees, and a stablecoin-native experience.

Tempo has been shaped with a wide group of partners validating real workloads including @AnthropicAI, @Coupang,… pic.twitter.com/tHcjuBRGZb

— tempo (@tempo) December 9, 2025

In a broader industry context, this move echoes recent developments at SWIFT.

As reported by BitKE in September 2025, SWIFT’s Chief Innovation Officer argued that traditional financial institutions are unlikely to rely solely on public blockchains – instead, banks prefer to ‘own their own rails.’

In his view, public blockchains like Bitcoin or Ethereum can serve as a ‘substrate’ or base layer, but trusted settlement for institutions requires governance, compliance and legal enforceability managed internally, rather than outsourced to third-party infrastructure.

‘Institutions Don’t Want to Live on Competitors’ Rails,’ Says Chief Innovation Officer, SWIFT

In other words: while public, decentralized networks offer transparency and programmability, institutions are unlikely to ‘live on a competitor’s rails.’ Instead, the next wave in financial infrastructure could see traditional finance – banks, payment providers, fintechs – absorbing the strongest aspects of public blockchains, while building their own trusted, compliant rails.

Tempo’s public testnet – with its stablecoin-first, payments-optimized design – can be seen as one such effort: a new rail built by a payments giant and a crypto-native firm, aiming to bridge real-world finance and blockchain-native value movement.

EDITORIAL | Why Circle, Stripe, and the Next Wave of Fintech Giants Want Their Own Blockchains

 

 

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[PRESS RELEASE]

Ezeebit, the FSCA-regulated stablecoin and cryptocurrency payment infrastructure company, has announced the close of a $2.05 million seed funding round. The capital will be used to accelerate product development and merchant adoption in South Africa, Kenya, and Nigeria and expand strategic partnerships with banks, PSPs, and telcos.

Ezeebit enables merchants to accept cryptocurrency payments with instant stablecoin settlement and next-business-day local fiat payouts. Since launching in 2023, the company has already processed more than 30,000 transactions totalling millions of dollars in gross merchandise value. Clients include iStore, Le Creuset, Scoin, Tintswalo Lodges, Amiri and Diesel.

Ezeebit’s funders include prominent industry names – all of whom bring a wealth of expertise in payments, financial infrastructure and growth strategies.

The round was led by:

African fintech investor, Raba Partnerships, focuses on entrepreneurs in emerging technology ecosystems, partnering with founders to build companies that generate outsized returns by solving real-world problems. Partnerships include many category-defining African software and internet companies. 

The Founder Collective is one of the world’s largest seed-stage investors. Its co-founder, David Frankel, has appeared on the Forbes Midas List four times and has backed more than ten billion-dollar startups including Uber, Airtable, The Trade Desk and Venmo. He is also known as the entrepreneur who built the major South African ISP, Internet Solutions.

Noteworthy angels:

Terry Angelos (Head of Fintech at VISA, for seven years)

Anton Katz (CEO of Talos, an institutional crypto exchange valued at~$2B)

Nadir Khamissa (Co-founder of Hello Group, a South African fintech and telecoms group that builds low‑cost financial and communication services for migrant and marginalised communities)

David De Picciotto (former GM of Expansion at global fintech, Revolut, for five years)

Chris Harmse (Co-founder and Chief Business Officer of BVNK, an enterprise stablecoin payments infrastructure company)

 

“African merchants are tied to slow, expensive payment rails, while consumers increasingly hold crypto for remittances and savings but lack a safe way to spend it,” explains Daniel Katz, CEO and Co-Founder of Ezeebit.

“We bridge this gap by connecting decentralised and traditional finance with a compliant stablecoin settlement layer. This funding empowers us to provide that vital infrastructure, allowing millions to participate fully in the global digital economy.” 

Ezeebit was built by three brothers, Daniel, David and Jonthan Katz, after they personally experienced the challenges of cross border payments in Africa. Between them, their backgrounds in engineering, finance, and computer science brings both technical depth and commercial experience to the business.

Bootstrapped since launch, external funding will now help support Ezeebit’s expansion strategy.

 

Why Ezeebit is Needed in South Africa

South Africa’s payment rails were never built for the everyday merchant: debit cards are widespread among consumers, but acceptance is low because interchange and acquiring fees remain stubbornly high relative to narrow retail margins. A U.S. merchant can shrug off 2–3% card fees; a South African merchant selling groceries, airtime, or household goods often operates on margins below that, meaning every swipe risks turning a sale into a loss. Layer on multi-day settlement delays and a volatile currency – where the rand can swing 10-20% in a quarter, and you get an ecosystem where neither merchants nor customers trust traditional rails.

Stablecoins solve two problems at once:

they provide a currency hedge for consumers and

promise instant, low-cost settlement for merchants.

Ezeebit is the connective tissue making those stablecoins actually spendable in stores.

 

Addressing Consumer Needs and Merchant Costs 

Africa is experiencing a convergence of structural tailwinds. These include lingering inflation in some countries fueling the demand for stablecoins, negligible credit card penetration (just 4% of adults in Sub-Saharan Africa hold credit cards), and mobile money increasing the comfort of hundreds of millions to pay digitally via QR codes. In addition, smartphone adoption will approach  90% by 2030, expanding the addressable market.

According to the 2025 Geography of Cryptocurrency Report, between July 2024 and June 2025, Sub-Saharan Africa received over $205 billion in on-chain value, an increase of 52% from the previous year, making it the third fastest growing region in the world, behind APAC and Latin America.

REPORT | Sub-Saharan Africa is the 3rd Fastest-Growing Region Globally in OnChain Value

While there is strong growth in traditional digital payment adoption, African merchants face immediate challenges including high fees (around 2–3% or more for card transactions), multi-day settlement (between three and five days), frequent declines, and limited cross-border options.

Ezeebit merchants enjoy fees of 1% or less amounting to a 68% saving compared to traditional card payments, along with instant stablecoin settlement and next-business-day local fiat payouts, eliminating volatility risk.

“Mobile money has already sensitised hundreds of millions of consumers to pay digitally via QR and account-to-account transfers. Stablecoins are the logical next step.

What’s more, at 8.78%, Sub-Saharan Africa remains the most expensive region in the world to receive remittances, making crypto rails a compelling alternative. And, once consumers have received crypto, they are eager to spend it on goods and services, creating a reinforcing growth loop,” Katz says.

 

David Frankel, Co-Founder and Managing Partner at Founder Collective says,

“What’s happening in Africa is extraordinary. Millions of people hold crypto but can’t spend it; merchants need faster, cheaper rails, but legacy systems keep them locked out.

Ezeebit is building the bridge.

This team has an uncommon gift for integrating modern financial technology with a grounded understanding of the dynamics shaping the markets they serve.”

 

Amanda Herson, General Partner at Founder Collective, added,

“What excites us most is how Ezeebit makes something complex feel simple. They’ve built real infrastructure, including wallet orchestration, instant hedging, and compliance tooling, that makes crypto payments work like tapping a card.

In markets where half the population is unbanked, Ezeebit isn’t just processing transactions, they’re opening access and building a trusted brand in the space.”

 

Compliance-First, Built for Scale

Regulatory ambiguity remains one of crypto’s biggest adoption hurdles. Ezeebit stands out as an FSCA-regulated, Africa-first stablecoin payment infrastructure, a compliant Financial Services Provider (FSP) as well as a Crypto Asset Service Provider (CASP).

The platform is Compliance by Design with built-in AML/KYC and Travel Rule readiness.

REGULATION | The Travel Rule Takes Effect in South Africa and Regulated Crypto Exchanges Are Complying

This allows merchants to accept Bitcoin, USDT, USDC, and ETH and more, from any wallet (custodial, DeFi, or foreign) through seamless omnichannel rails – including Android ePOS devices, e-commerce plugins, and APIs – without taking on regulatory volatility or risk.

Ezeebit is wallet agnostic. This benefits users by giving them the freedom to use their preferred wallets, while also reducing friction at the point of payment for a better user experience. This expands the platform’s accessibility and adoption opportunity across diverse crypto users.

 

George Rzepecki, Founder at Raba Partnership, commented:

“While Sub-Saharan Africa remains the most expensive region for money movement, Ezeebit is rebuilding the payment stack with compliant stablecoin and crypto rails. Regulatory clarity in key African markets creates a rare window to build this infrastructure at scale.”

 

__________

About Ezeebit

Ezeebit is a South African FSCA-regulated crypto payment infrastructure company (FSP & CASP No. 53664) enabling merchants to accept cryptocurrency and stablecoin payments with instant stablecoin settlement and local fiat payouts.

Operating since 2023, it was founded by three brothers – Daniel, Jonathan, and David Katz – who saw firsthand how traditional payment systems were failing African merchants, Ezeebit was built from the ground up to solve real merchant problems with compliance-first infrastructure. The company serves brick-and-mortar and online merchants across South Africa with expansion planned into the rest of Africa.

Learn more at ezeebit.com.

REGULATION | South Africa Has Now Approved 248 Crypto Providers Out of 420 Received So Far, Only 9 Applications Rejected

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Bitcoin retail inflows to Binance have collapsed to a record low in 2025 – an unmistakable signal that ‘small fish‘ or retail participants are increasingly bowing out of active spot-exchange trading, even as BTC price hits new bull-market highs.

 

What’s Happening – and Why It Matters

According to on-chain data from CryptoQuant, addresses holding ≤ 1 BTC (so-called ‘shrimp‘ or retail holders) are now depositing, on average, just ~ 400–411 BTC per day to Binance – the lowest level ever recorded. That’s a sharp drop from ~ 2,675 BTC/day (30-day SMA) in December 2022.

CryptoQuant contributor ‘Darkfost‘ calls this not a mere pullback but a full-blown structural decline: retail inflows have shrunk to a fraction of what they were even during 2022’s bear market.

[MILESTONE] Binance Flips Coinbase as the Exchange with the Largest Bitcoin Supply

Why Retail is Stepping Back – and Institutions (or Whales) Might be Filling the Void

According to BitKE’s September 2025 analysis, institutions (funds, corporate treasuries, and other large stakeholders) now hold roughly 12% of the entire BTC supply – up ~5% over the past year.

This growing concentration among large players shifts BTC’s narrative away from being a ‘retail-driven phenomenon‘ to more of an institutional reserve asset.

On-chain supply dynamics support this shift: as more BTC moves off exchanges into long-term custody, the liquidity available for immediate trading shrinks – potentially tightening supply over time and increasing upside for price, especially if demand remains strong.

BITCOIN | Institutions Now Hold ~12% of the Total Bitcoin Supply – a 5% Increase in Just One Year

How New Investment Vehicles – Namely ETFs – are Reshaping Retail Behavior

CryptoQuant and other analysts argue that the rise of spot BTC ETFs gives retail investors a simpler way to gain exposure than dealing with wallets, keys, and exchange custody. This ‘frictionless‘ access is likely drawing many away from direct exchange trading.

In other words: many small BTC holders may still believe in Bitcoin – but prefer ETFs over direct exchange deposits, reducing visible “retail inflows” even if demand remains.

 

What This Could Mean for the Market Going Forward

With retail liquidity fading and institutional accumulation growing, BTC’s supply on exchanges may continue to shrink – potentially creating a ‘supply shock,’ which could support further price appreciation if demand holds.

The changing investor mix (fewer small-holders, more long-term and large holders) might also lead to reduced volatility – but could increase correlation between macro/institutional events and price swings.

For markets like Africa (and places where crypto intersects with mobile money / financial inclusion), this shift might further entrench BTC as a store-of-value for long-term holders / institutions – rather than a speculative instrument for frequent retail traders.

 

Not Just a Dip, But a Structural Shift

The collapse of retail inflows to Binance in 2025 isn’t merely a ‘pause‘ or ‘dip‘ – it reflects a deeper structural realignment in how people hold and use Bitcoin. As institutions accumulate and newer investment vehicles (like ETFs) absorb retail demand, BTC may increasingly evolve into an institutional reserve asset, with fewer small holders actively trading on-chain.

MILESTONE | Binance Becomes the First Centralized Crypto Exchange to Surpass $100 Trillion in Trading Volume

 

 

 

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International credit-rating agency, Fitch Ratings, has cautioned that U.S. banks with ‘significant’ exposure to cryptocurrencies could see their credit ratings reassessed downward.

While integrating crypto operations can offer banks new revenue streams – such as increased fees, yields, and greater operational efficiency – Fitch warns these benefits come with serious risks.

According to Fitch, banks dealing heavily in crypto face ‘reputational, liquidity, operational and compliance’ risks.

 

Recall that in October 2025, a similar rating by S&P Global Ratings agency assigned a ‘B-‘ issuer credit rating to Strategy Inc. According to the agency:

“Our ratings on Strategy incorporate our view of the company’s narrow business focus, high bitcoin concentration, low U.S. dollar liquidity, and very weak risk-adjusted capital offset, only partially by Strategy’s strong access to capital markets and prudent management of its capital structure.

The company’s concentration in bitcoin is key to its strategy and will likely continue to weigh on our ratings. Strategy’s treasury reserve strategy gives indirect exposure to bitcoin to investors who can’t have or prefer to avoid direct exposure to bitcoin.”

PRESS RELEASE | The First Bitcoin Treasury Company Receives a B- Rating from a Major Credit Rating Agency

Fitch added that although stablecoin issuance, deposit tokenization, and blockchain-based services could potentially enhance payment and smart-contract solutions, banks must also,

manage the volatility of cryptocurrency values

the pseudonymous nature of digital asset owners, and

the security of digital assets against loss or theft

in order to realize the earnings nad franchise benefits.

The agency stressed that if these challenges are not properly addressed, the purported earnings and franchise benefits from crypto may not materialize – and banks, as a result of the ratings, could suffer from

Reduced investor confidence

Higher borrowing costs, and

Increased difficulties in financing and growth.

Fitch aslo highlighted the financial system risks that could come from an increased adoption of stablecoins, ‘particularly if it reaches a level sufficient to influence the Treasury market.’

EXPERT OPINION | Stablecoins Are Expanding the Definition of What We Call ‘Money’

A similar analysis on USD-linked stablecoins in particular was also published in September 2025 by Moody’s Ratings. According to the expert analysis, digital currency adoption poses risks to the financial sector. Banks may face deposit erosion if individuals shift savings from domestic bank deposits into stablecoins or crypto wallets.

 

The report noted:

“High penetration of USD-linked stablecoins in particular can weaken monetary transmission, especially where pricing and settlement increasingly occur outside the domestic currency. This creates cryptoization3 pressures analogous to unofficial dollarization, but with greater opacity and less regulatory visibility.

Liquidity stresses in major stablecoins, such as the TerraUSD collapse in 2022 and USDC’s temporary depeg in 2023, highlight the potential for abrupt wealth effects and payment frictions when exposures are significant in the real economy.”

EXPERT ANALYSIS | ‘In Emerging Markets, High Penetration of USD-Linked Stablecoins in Particular, Weaken Monetary Transmission,’ Warns Moody’s Ratings

Fitch’s warning comes even as regulatory developments in the U.S. seek to make the crypto industry safer. Still, the credit-rating agency says the risks inherent in digital asset exposure remain a major concern for the stability and long-term viability of banks engaging heavily in crypto.

Fitch Ratings is one of the ‘Big 3’ credit rating agencies in the United States alongise Moody’s and S&P Global Ratings.

Ratings from these three firms carry significant weight in the financial world and usually impact how businesses are perceived or how investors view such businesses from an economic viability perspective.

INTRODUCING | Big 3 Global Credit Rating Agency, S&P Global Ratings, Launches Stablecoin Stability Assessment

 

 

Stay tuned to BitKE updates on crypto adoption globally.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

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___________________________________________

International credit-rating agency, Fitch Ratings, has cautioned that U.S. banks with ‘significant’ exposure to cryptocurrencies could see their credit ratings reassessed downward.

While integrating crypto operations can offer banks new revenue streams – such as increased fees, yields, and greater operational efficiency – Fitch warns these benefits come with serious risks.

According to Fitch, banks dealing heavily in crypto face ‘reputational, liquidity, operational and compliance’ risks.

 

Recall that in October 2025, a similar rating by S&P Global Ratings agency assigned a ‘B-‘ issuer credit rating to Strategy Inc. According to the agency:

“Our ratings on Strategy incorporate our view of the company’s narrow business focus, high bitcoin concentration, low U.S. dollar liquidity, and very weak risk-adjusted capital offset, only partially by Strategy’s strong access to capital markets and prudent management of its capital structure.

The company’s concentration in bitcoin is key to its strategy and will likely continue to weigh on our ratings. Strategy’s treasury reserve strategy gives indirect exposure to bitcoin to investors who can’t have or prefer to avoid direct exposure to bitcoin.”

PRESS RELEASE | The First Bitcoin Treasury Company Receives a B- Rating from a Major Credit Rating Agency

Fitch added that although stablecoin issuance, deposit tokenization, and blockchain-based services could potentially enhance payment and smart-contract solutions, banks must also,

manage the volatility of cryptocurrency values

the pseudonymous nature of digital asset owners, and

the security of digital assets against loss or theft

in order to realize the earnings nad franchise benefits.

The agency stressed that if these challenges are not properly addressed, the purported earnings and franchise benefits from crypto may not materialize – and banks, as a result of the ratings, could suffer from

Reduced investor confidence

Higher borrowing costs, and

Increased difficulties in financing and growth.

Fitch aslo highlighted the financial system risks that could come from an increased adoption of stablecoins, ‘particularly if it reaches a level sufficient to influence the Treasury market.’

EXPERT OPINION | Stablecoins Are Expanding the Definition of What We Call ‘Money’

A similar analysis on USD-linked stablecoins in particular was also published in September 2025 by Moody’s Ratings. According to the expert analysis, digital currency adoption poses risks to the financial sector. Banks may face deposit erosion if individuals shift savings from domestic bank deposits into stablecoins or crypto wallets.

 

The report noted:

“High penetration of USD-linked stablecoins in particular can weaken monetary transmission, especially where pricing and settlement increasingly occur outside the domestic currency. This creates cryptoization3 pressures analogous to unofficial dollarization, but with greater opacity and less regulatory visibility.

Liquidity stresses in major stablecoins, such as the TerraUSD collapse in 2022 and USDC’s temporary depeg in 2023, highlight the potential for abrupt wealth effects and payment frictions when exposures are significant in the real economy.”

EXPERT ANALYSIS | ‘In Emerging Markets, High Penetration of USD-Linked Stablecoins in Particular, Weaken Monetary Transmission,’ Warns Moody’s Ratings

Fitch’s warning comes even as regulatory developments in the U.S. seek to make the crypto industry safer. Still, the credit-rating agency says the risks inherent in digital asset exposure remain a major concern for the stability and long-term viability of banks engaging heavily in crypto.

Fitch Ratings is one of the ‘Big 3’ credit rating agencies in the United States alongise Moody’s and S&P Global Ratings.

Ratings from these three firms carry significant weight in the financial world and usually impact how businesses are perceived or how investors view such businesses from an economic viability perspective.

INTRODUCING | Big 3 Global Credit Rating Agency, S&P Global Ratings, Launches Stablecoin Stability Assessment

 

 

Stay tuned to BitKE updates on crypto adoption globally.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

___________________________________________

The Digital Ethiopia 2030 strategy is one of the most forward-leaning digital transformation blueprints on the continent – and notably, it integrates blockchain, distributed ledger technologies (DLT), and cryptocurrency-related policy directions across multiple sectors. Rather than treating blockchain as a niche technology, the strategy embeds it in national priorities ranging from mining governance to agriculture, logistics, finance, and digital trade.

 

Below is a breakdown of how the strategy addresses blockchain and crypto, and what it signals for Ethiopia’s digital future.

1.) Blockchain in National Digital Strategy (Industry 5.0)

The document identifies blockchain and distributed ledger technologies (DLT) as one of the core Industry 5.0 tools Ethiopia will prioritize to secure data, authenticate transactions, and underpin future digital systems.

The strategy explicitly lists:

Blockchain / DLT for secure, tamper-proof transactions

Use-cases tied to automation, real-time monitoring, and transparency.

This positions blockchain not as an experimental tool but a foundational component of Ethiopia’s long-term digital architecture.

2.) Blockchain for Mining Traceability (One of the Strongest Use-Cases)

The mining sector – a major source of export revenue – is slated for full-scale digital modernization.

 

Key blockchain mentions include:

• Blockchain-enabled traceability in mining

The strategy emphasizes blockchain for mineral provenance, compliance, and transparency:

Deploy blockchain-based traceability systems to ensure compliance and strengthen investor confidence.

Facilitate proof of origin, reduce fraud, and support export competitiveness.

 

• Rwanda case study included as a blueprint

The strategy highlights Rwanda’s pioneering role:

Blockchain traceability for tin

Minexx blockchain platform for artisanal miners

Over 50,000 tonnes of minerals tracked via blockchain systems These examples are directly recommended as models for Ethiopia.

 

Strategic impact:

Blockchain is framed as critical for:

Attracting responsible investment

Meeting global compliance and due-diligence requirements

Integrating artisanal miners into global, transparent supply chains

Kenya is aligning with the EU’s deforestation law, which means 1.2M farmers need to get on the map.

Dimitra is already making it happen.

This article explores how blockchain can bridge the traceability gap: https://t.co/SLcsodu54s#EUDR #Deforestation

— Dimitra Technology (@dimitratech) July 21, 2025

3.) Blockchain in Agriculture — Coffee Traceability and Export Premiums

Agriculture, especially coffee, receives a major blockchain application:

 

• Blockchain-based coffee traceability systems

The strategy calls for:

Blockchain for coffee certification and traceability, reinforcing Ethiopia’s premium global position.

Export-grade transparency from farmer to buyer

Support for AI-driven disease detection tied to blockchain records

This positions Ethiopian coffee for higher-value export markets where verifiable origin is critical.

Ethiopia Signs MOU with Cardano for a Blockchain-Powered Coffee Supply Chain and promises to train Blockchain developers in the country: https://t.co/McZ1nzkIdU pic.twitter.com/ct4v6WTola

— BitKE (@BitcoinKE) May 7, 2018

4.) Blockchain for Logistics, Supply Chain & Trade Corridors

Ethiopia’s logistics challenges are well known — high costs, inefficiency, and limited visibility. Digital Ethiopia 2030 introduces blockchain-driven reforms:

 

• Blockchain for supply chain traceability

The plan includes:

Blockchain-based platforms to record and timestamp transactions

Reducing disputes and enhancing cross-border transparency

Integration into multimodal transport and trade corridors

This brings Ethiopia closer to global standards in trade digitization, supporting AfCFTA digital trade protocols.

5.) Blockchain in Finance, Digital Trade & National Governance

While Ethiopia’s financial sector remains tightly regulated, the strategy introduces several frontier policy directions:

 

• Blockchain-based remittances

Listed under Finance use-cases within Industry 5.0:

Blockchain-based remittances and fraud detection as future applications.

 

• Blockchain and crypto regulatory sandboxes

The strategy calls for supervised innovation environments covering:

Blockchain

Stablecoins

DeFi

Cryptocurrencies

This is highly notable – Ethiopia explicitly acknowledges crypto and DeFi as innovation sectors requiring regulated sandboxes rather than outright prohibition.

 

• Development of a national Blockchain & DLT Strategy

A governance-level commitment to:

National blockchain policy

Cross-sector interoperability

Secure data structures

This indicates alignment with global digital governance frameworks.

REPORT | Stablecoin Transfers Account for 43% of All Crypto Transfers Across Africa, Ethiopia is Fastest-Growing Market, Says Chainalysis

6.) Crypto Mining for Energy Monetization (Rare for a National Strategy)

One of the most striking direct mentions of crypto:

 

• Leveraging crypto mining to monetize surplus renewable energy

The government proposes:

A regulated framework for crypto mining

Using cheap renewable energy to attract miners

Redirecting part of mining revenue to rural electrification and grid expansion

This aligns Ethiopia with other energy-rich nations exploring industrial-scale crypto mining as part of energy strategy.

LIST | A Look At 10 Key Milestones Behind Ethiopia’s Rise As a Bitcoin Mining Haven in 2024

In this article, we explore the key milestones that propelled #Ethiopia into the ranks of global Bitcoin mining powerhouseshttps://t.co/EtQcpEBTBr @KalKassa @qrb_labs @WestDataGroup pic.twitter.com/tCxj4Wye4f

— BitKE (@BitcoinKE) January 3, 2025

7.) Blockchain in Coffee, Supply Chains, Health & Beyond

Additional mentions include:

Blockchain for border clearance in logistics and trade corridors.

Potential DLT-enabled healthcare data systems (inferred from Industry 5.0 stack).

Blockchain in educational credential verification (through digital ID + interoperable systems).

Blockchain within creative industries for metadata and rights management.

Cardano is pioneering change in Africa, collaborating with governments to address real-world issues.

5 million students will receive digital IDs on the #Cardano platform to combat fraudulent certifications.

Read more: https://t.co/IaKZk1birE pic.twitter.com/qgIUZ08eeV

— EMURGO Africa (@EmurgoAfrica) October 10, 2023

Overall Assessment: Ethiopia Is Quietly Building a Web3-Ready Digital State

The Digital Ethiopia 2030 strategy doesn’t treat blockchain or crypto as buzzwords — instead, it integrates them into high-value, high-impact national systems that genuinely benefit from decentralization and verifiable transparency.

Most advanced areas:

Mining governance (strongest and most immediate use-case)

Agricultural exports (coffee)

Trade & logistics compliance

Financial inclusion & remittances

Energy monetization via regulated crypto mining

Most forward-looking policy commitments:

Regulatory sandboxes for stablecoins, DeFi, crypto

Development of a national Blockchain & DLT Strategy

Ethiopia is moving toward a hybrid digital governance model where blockchain underpins trust, traceability, and cross-border interoperability. Unlike other states, the strategy does not reject crypto — it aims to regulate, integrate, and strategically leverage it.

USE CASE | GoldBod, the Official Ghana Gold Board, Set to Deploy Blockchain System to ‘Trace Every Gram of Gold by 2026’

 

 

Want to keep updated on crypto developments in Africa?

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_______________________________

The Digital Ethiopia 2030 strategy is one of the most forward-leaning digital transformation blueprints on the continent – and notably, it integrates blockchain, distributed ledger technologies (DLT), and cryptocurrency-related policy directions across multiple sectors. Rather than treating blockchain as a niche technology, the strategy embeds it in national priorities ranging from mining governance to agriculture, logistics, finance, and digital trade.

 

Below is a breakdown of how the strategy addresses blockchain and crypto, and what it signals for Ethiopia’s digital future.

1.) Blockchain in National Digital Strategy (Industry 5.0)

The document identifies blockchain and distributed ledger technologies (DLT) as one of the core Industry 5.0 tools Ethiopia will prioritize to secure data, authenticate transactions, and underpin future digital systems.

The strategy explicitly lists:

Blockchain / DLT for secure, tamper-proof transactions

Use-cases tied to automation, real-time monitoring, and transparency.

This positions blockchain not as an experimental tool but a foundational component of Ethiopia’s long-term digital architecture.

2.) Blockchain for Mining Traceability (One of the Strongest Use-Cases)

The mining sector – a major source of export revenue – is slated for full-scale digital modernization.

 

Key blockchain mentions include:

• Blockchain-enabled traceability in mining

The strategy emphasizes blockchain for mineral provenance, compliance, and transparency:

Deploy blockchain-based traceability systems to ensure compliance and strengthen investor confidence.

Facilitate proof of origin, reduce fraud, and support export competitiveness.

 

• Rwanda case study included as a blueprint

The strategy highlights Rwanda’s pioneering role:

Blockchain traceability for tin

Minexx blockchain platform for artisanal miners

Over 50,000 tonnes of minerals tracked via blockchain systems These examples are directly recommended as models for Ethiopia.

 

Strategic impact:

Blockchain is framed as critical for:

Attracting responsible investment

Meeting global compliance and due-diligence requirements

Integrating artisanal miners into global, transparent supply chains

Kenya is aligning with the EU’s deforestation law, which means 1.2M farmers need to get on the map.

Dimitra is already making it happen.

This article explores how blockchain can bridge the traceability gap: https://t.co/SLcsodu54s#EUDR #Deforestation

— Dimitra Technology (@dimitratech) July 21, 2025

3.) Blockchain in Agriculture — Coffee Traceability and Export Premiums

Agriculture, especially coffee, receives a major blockchain application:

 

• Blockchain-based coffee traceability systems

The strategy calls for:

Blockchain for coffee certification and traceability, reinforcing Ethiopia’s premium global position.

Export-grade transparency from farmer to buyer

Support for AI-driven disease detection tied to blockchain records

This positions Ethiopian coffee for higher-value export markets where verifiable origin is critical.

Ethiopia Signs MOU with Cardano for a Blockchain-Powered Coffee Supply Chain and promises to train Blockchain developers in the country: https://t.co/McZ1nzkIdU pic.twitter.com/ct4v6WTola

— BitKE (@BitcoinKE) May 7, 2018

4.) Blockchain for Logistics, Supply Chain & Trade Corridors

Ethiopia’s logistics challenges are well known — high costs, inefficiency, and limited visibility. Digital Ethiopia 2030 introduces blockchain-driven reforms:

 

• Blockchain for supply chain traceability

The plan includes:

Blockchain-based platforms to record and timestamp transactions

Reducing disputes and enhancing cross-border transparency

Integration into multimodal transport and trade corridors

This brings Ethiopia closer to global standards in trade digitization, supporting AfCFTA digital trade protocols.

5.) Blockchain in Finance, Digital Trade & National Governance

While Ethiopia’s financial sector remains tightly regulated, the strategy introduces several frontier policy directions:

 

• Blockchain-based remittances

Listed under Finance use-cases within Industry 5.0:

Blockchain-based remittances and fraud detection as future applications.

 

• Blockchain and crypto regulatory sandboxes

The strategy calls for supervised innovation environments covering:

Blockchain

Stablecoins

DeFi

Cryptocurrencies

This is highly notable – Ethiopia explicitly acknowledges crypto and DeFi as innovation sectors requiring regulated sandboxes rather than outright prohibition.

 

• Development of a national Blockchain & DLT Strategy

A governance-level commitment to:

National blockchain policy

Cross-sector interoperability

Secure data structures

This indicates alignment with global digital governance frameworks.

REPORT | Stablecoin Transfers Account for 43% of All Crypto Transfers Across Africa, Ethiopia is Fastest-Growing Market, Says Chainalysis

6.) Crypto Mining for Energy Monetization (Rare for a National Strategy)

One of the most striking direct mentions of crypto:

 

• Leveraging crypto mining to monetize surplus renewable energy

The government proposes:

A regulated framework for crypto mining

Using cheap renewable energy to attract miners

Redirecting part of mining revenue to rural electrification and grid expansion

This aligns Ethiopia with other energy-rich nations exploring industrial-scale crypto mining as part of energy strategy.

LIST | A Look At 10 Key Milestones Behind Ethiopia’s Rise As a Bitcoin Mining Haven in 2024

In this article, we explore the key milestones that propelled #Ethiopia into the ranks of global Bitcoin mining powerhouseshttps://t.co/EtQcpEBTBr @KalKassa @qrb_labs @WestDataGroup pic.twitter.com/tCxj4Wye4f

— BitKE (@BitcoinKE) January 3, 2025

7.) Blockchain in Coffee, Supply Chains, Health & Beyond

Additional mentions include:

Blockchain for border clearance in logistics and trade corridors.

Potential DLT-enabled healthcare data systems (inferred from Industry 5.0 stack).

Blockchain in educational credential verification (through digital ID + interoperable systems).

Blockchain within creative industries for metadata and rights management.

Cardano is pioneering change in Africa, collaborating with governments to address real-world issues.

5 million students will receive digital IDs on the #Cardano platform to combat fraudulent certifications.

Read more: https://t.co/IaKZk1birE pic.twitter.com/qgIUZ08eeV

— EMURGO Africa (@EmurgoAfrica) October 10, 2023

Overall Assessment: Ethiopia Is Quietly Building a Web3-Ready Digital State

The Digital Ethiopia 2030 strategy doesn’t treat blockchain or crypto as buzzwords — instead, it integrates them into high-value, high-impact national systems that genuinely benefit from decentralization and verifiable transparency.

Most advanced areas:

Mining governance (strongest and most immediate use-case)

Agricultural exports (coffee)

Trade & logistics compliance

Financial inclusion & remittances

Energy monetization via regulated crypto mining

Most forward-looking policy commitments:

Regulatory sandboxes for stablecoins, DeFi, crypto

Development of a national Blockchain & DLT Strategy

Ethiopia is moving toward a hybrid digital governance model where blockchain underpins trust, traceability, and cross-border interoperability. Unlike other states, the strategy does not reject crypto — it aims to regulate, integrate, and strategically leverage it.

USE CASE | GoldBod, the Official Ghana Gold Board, Set to Deploy Blockchain System to ‘Trace Every Gram of Gold by 2026’

 

 

Want to keep updated on crypto developments in Africa?

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_______________________________

Polymarket and Kalshi just posted their strongest month ever – even as Solana’s memecoin share sank to cycle-lows. Let’s walk through how liquidity flows appear to have rotated, and whether this marks a deeper shift in where crypto capital hunts for edge.

EXPLAINER: How to Make Bets and Earn $USDC Using the PolyMarket Prediction Market

Memecoins Fade

Last month, trading volume in Solana memecoins clocked in at $13.9 billion – the lowest monthly total since February 2024, before the memecoin mania took off.

To put it in context: memecoin volume on Solana reached a peak of roughly $169.5 billion in January 2025.

Since then, activity gradually decreased each month in 2025, from

$34.4 billion in July

$29.2 billion in August

$19.7 billion in September

$16.5 billion in October; down to

$13.9 billion in November – a ~60 % drop from July 2025.

Notably, this wasn’t a sudden crash triggered by a hack or a major ‘rug-pull.’ Rather, the decline appears gradual – suggesting many traders deliberately moved capital elsewhere, instead of panic-exiting.

STATISTICS | Pump.Fun MemeCoins Face Mass Extinction – Less Than 1% Survive

Prediction Markets Surge

As memecoin activity waned, prediction-market platforms on Solana saw a steep rise. In November 2025, Polymarket recorded $3.7 billion in volume – its highest ever – while Kalshi posted $4.25 billion, its second strongest month. Combined, that’s nearly $8 billion.

That $8 billion represents 57% of Solana’s memecoin volume, and the gap is closing fast.

Compare that to earlier this year: as recently as August 2025, prediction markets represented under 10% of memecoin volume. By October 2025, that number was 45%, and now it’s crossed into majority territory.

FUNDING | Leading Web3 Decentralized Platform, PolyMarket, Reportedly Raising $200 Million at $1 Billion Valuation

From Hype to Information — a Structural Shift?

Some in the crypto world, including Vitalik Buterin, frame prediction markets as “info finance” – a kind of infrastructure that aims to aggregate dispersed knowledge into probabilistic forecasts, rather than rely on hype or momentum.

In theory, that makes prediction markets more ‘useful‘ than memecoins: whereas memecoins often reflect no fundamental value and rely on social media hype or the next token drop, prediction markets allow traders to profit by leveraging superior information or analysis – whether about elections, macro-economic events, or other real-world outcomes.

There’s a narrative appeal: instead of ‘flipping the next meme token and hoping it moons,‘ traders can now bet on probabilities, potentially generating useful signals – or at least framing their activity as contributing to ‘price discovery‘ rather than just speculating.

PARTNERSHIP | Social Media Platform, X, Partners with Decentralized Prediction Markets, PolyMarket, to Help Audiences Contextualize Information

What Remains Uncertain

But this doesn’t automatically mean prediction markets are a perfect alternative to memecoins. For one thing, while volumes have grown, liquidity depth is still shallow compared with institutional markets — meaning large trades can still sway odds and probabilities.

Moreover, prediction markets remain vulnerable to manipulation: when contracts don’t attract broad participation, a single large actor can distort the outcome.

Finally, memecoins haven’t gone away. The $13.9 billion in monthly volume remains substantial – still dwarfing many other DeFi protocols on Solana.

What we’re seeing on Solana appears to be a deliberate rotation: liquidity and trader interest are moving away from the hype-driven, high-volatility memecoin casino toward prediction markets – where ‘information advantage‘ and event-based betting currently offer more perceived value.

Whether this is a structural evolution – one that will deepen with time and perhaps rival traditional financial markets – remains uncertain. But for now: the trenches have moved, and roughly $8 billion of capital followed.

Understanding DeFi Prediction Markets and Why they are Always Right

 

 

Stay tuned to BitKE on crypto updates globally.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

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___________________________________________

The Director Investigations Bureau at the Directorate of Criminal Investigations (DCI Kenya), Mr. Abdalla Komesha, has admitted to a rise in cryptocurrency-related crimes.

Speaking during the closing ceremony of the Blockchain and Cryptocurrencies Crime Investigations Course held at the National Criminal Investigations Academy (NCIA), the Director said the partnership and support in facilitating this invaluable training would ‘equip the detectives with advanced forensic techniques to develop practical strategies for combating cross-border illicit transactions.’

The five-day intensive programme brought together investigators from over ten African countries explored the technical intricacies of digital currencies.

During his address, NCIA Commandant Mr. Sospeter Munyi praised the participants for their dedication and active involvement in the course. He encouraged them to implement their new knowledge and skills to improve the efficiency and quality of their investigative work.

The ceremony was also graced by:

The Programme Manager from the EU, Mr. Louis Dey

European Union Action Against Crime (EU-ACT) Organised Crime key expert Col. Andrea Antonazzo

Eastern Africa Police Chiefs Cooperation (EAPCCO) Regional Specialised Officer, Mr. Dennis Wanyama

Deputy Commandant NCIA, Mr. Stephen Chacha, and

Instructors, led by Mr. Tom Nyabuti.

BitKE has consistently reported on DCI Kenya’s investigations related to cryptocurrency crime and fraud throughout 2025 including public cautions, arrests, and prosecutions.

In June 2025, DCI Kenya highlighted the growing role of crypto in money laundering within the country.

REGULATION | ‘Proceeds of Crime Are Laundered and Concealed Within Real Estate or Cryptocurrency in Kenya,’ Says Kenyan Director of Criminal Investigations (DCI)

In July 2025, a major Kenyan bank lost ~$4 million after a group of contractors manipulated the institution’s IT systems to siphon funds through unauthorized wallet creation and crypto channels.

CRYPTO CRIME | Kenyan Bank Loses Over KES 500 Million (~$4 Million) in Sophisticated IT System Breach Involving USDT Stablecoin Laundering

In July 2025, a major crypto scam, dubbed CBEX, was uncovered which saw thousands of Kenyans and Nigerians swindled of ~$847 million.

REGULATION | EFCC Nigeria Releases List of 8 Nigerians and Kenyans Alleged to Be Behind CBEX Fraud

In October 2025, INTERPOL and AFRIPOL arrested 83 individuals across 6 African countries, including Kenya, during a crack down on crypto-based terrorism financing worth ~$430,000 with a major exchange implicated.

REGULATION | INTERPOL and AFRIPOL Crack Down on Crypto-Based Terrorism Financing Worth ~$430,000 in Kenya

In November 2025, a businessman in Kenya was been arrested by the Kenya Anti-Terrorism Police Unit (ATPU) on allegations of financing terrorism through cryptocurrencies.

CRYPTO CRIME | Kenyan Businessman Arrested Over Terror Financing Through Cryptocurrencies

In November 2025, a prominent Kenyan lawyer was also arrested over ‘terrorism financing with significant funds involving cryptocurrencies.’

CRYPTO CRIME | Prominent Kenyan Lawyer Reportedly Arrested Over Terrrorism Financing with Significant Funds Involving Cryptocurrencies

As a result of these activities, the FATF and the European Union (EU) grey-listed Kenya as a high-risk destination for money laundering.

The recently-passed Kenya VASP Act 2025 is expected to help cut down on crypto-related crimes through prosecutions and law enforcement.

The DCI Kenya training is likely part of that overall agenda.

REGULATION | ‘We Have Not Licensed Any VASPs Under the [VASP] Act to Operate In or From Kenya,’ Says Central Bank and Capital Markets Regulator

 

 

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_______________________________

Western Union plans to roll out a ‘stable card’ aimed at consumers in high-inflation economies – part of a broader stablecoin and digital-asset strategy.

Speaking at the UBS Global Technology and AI conference, CFO Matthew Cagwin said this initiative builds on earlier announcements that Western Union is expanding beyond traditional cross-border payments into a multi-pillar digital-asset roadmap.

PRESS RELEASE | Western Union Unveils ‘Beyond’ Strategy to Grow Revenue By 20%+ in 3 Years Partly Driven by its Stablecoin Strategy

Cagwin pointed to Argentina – where inflation recently reached 250–300% – noting that remittances can lose nearly half their value in a month. He asked readers to “imagine a world where your family in the U.S is sending you $500 home, but by the time you spend it in the next month, it’s only worth $300.”

He added that the stable card is envisioned as an ‘increment’ to Western Union’s existing prepaid card in the U.S., but with value retention benefits for users in inflation-hit countries.

#STABLECOINS | Western Union Already Implementing Stablecoin Settlement Processes in #Africa, Says CEO

“What we see is stablecoin really as an opportunity, not as a threat.” – CEO, @WesternUnion https://t.co/Pzkdlsvkbx pic.twitter.com/X7yM8hI21a

— BitKE (@BitcoinKE) July 22, 2025

Western Union to Issue its Own Coin

As part of the same strategy, Western Union also intends to issue its own coin. The firm believes its extensive distribution network – spanning some 200 countries – gives it a natural advantage, especially in emerging markets where remittances contribute significantly to GDP.

PRESS RELEASE | Western Union Announces USDPT Stablecoin on Solana and Digital Asset Network (https://t.co/Czd5LmgiXX)https://t.co/8BAWKDcA4H #Solana

— Kobocoin (@kobocoindev) October 29, 2025

Cagwin stressed that launching its own stablecoin would enable Western Union to control economics, compliance and distribution, creating a scalable market for its coin beyond current remittance corridors.

In addition, the company plans to roll out a new ‘Digital Asset Network’ (DAN), built in partnership with four on-ramp and off-ramp providers – slated to go live in the first half of 2025. This network is intended to support conversion between cash and stablecoins, lowering dependency on traditional cross-border banking rails.

According to the company, the upcoming stablecoin settlement system will be built on the Solana blockchain. The stablecoin – dubbed USDPT – along with the Digital Asset Network developed in partnership with Anchorage Digital Bank, is expected to launch in the first half of 2026, and to be distributed through partner exchanges.

The @WesternUnion Digital Asset Network will include 3rd party wallets from:@alfredlatam – Latin America@rain – Middle East & North #Africa (MENA)@yellowcard_app – Sub-Saharan #Africa (SSA)@crossmint – Enterprise wallet & commercehttps://t.co/AtdqiH0hBw pic.twitter.com/V8tOkrJ6Mt

— BitKE (@BitcoinKE) November 8, 2025

To support its broader ambitions, Western Union has also filed a trademark application for ‘WUUSD’ – signaling potential plans for a full spectrum of crypto services, including a wallet, trading features, and stablecoin-payment processing.

REGULATION | Western Union Signals Strong Move to Offer Crypto Services

For users in high-inflation or currency-volatile environments, a stable-value card tied to a U.S.-dollar–backed stablecoin could offer tangible protection against rapid currency devaluation. This shift – from cash-heavy remittances to on-chain, dollar-pegged instruments – underlines a broader push to modernize cross-border flows.

For Western Union, bringing together its global physical distribution network and blockchain rails could bridge traditional remittance infrastructure and crypto-native systems – potentially delivering faster, more stable, and more cost-efficient money movement, especially to emerging markets where stable value and remittance utility matter most.

‘Institutions Don’t Want to Live on Competitors’ Rails,’ Says Chief Innovation Officer, SWIFT

 

 

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Data from crypto analysis platform, Glassnode, indicates that the current price of Bitcoin (BTC) has slipped below the 0.75 quantile since mid-November leaving over a quarter of the entire circulating supply at unrealized losses.

Data from Artemis, another digital assets metrics platform, shows that Bitcoin Treasury companies are:

27% down over the last one month

41% down over the last 3 months

The problem however goes deeper than a simple price bounce.

The Artemis DAT heat map shows one thing clearly: the past 3 months have been brutal.

• BTC DATs: –40.9% • ETH DATs: –22.5% • SOL DATs: –47.2% • HYPE DATs: –54.6% https://t.co/LTELgdZu1u pic.twitter.com/tWYwLDkNqi

— Artemis (@artemis) December 3, 2025

How We Got Here

Recall that Bitcoin Treasury was pioneered by MicroStrategy using a simple strategy – Purchasing stock in companies holding Bitcoin traded at a massive premium to the underlying Net Asset Value, which was Bitcoin. This allowed the firms to issue expensive equity to buy cheaper coins thereby increasing Bitcoin per share that relied on one crucial input: a persistent equity premium.

However, with Bitcoin drawdown at roughly:

13% over the last month

16% over the last 3 months

the mechanism seems to have broken down as the premium to Net Asset Value has largely evaporated with the sector largely trading near or below the market value adjusted for debt.

Once the premium shifts to a discount, issuing shares to acquire Bitcoin stops adding value and instead destroys it.

To shift this sector from distressed proxies back into a premium asset class, a mere price recovery isn’t enough. The market needs structural fixes spanning pricing, liquidity, and governance.

BITCOIN | Institutions Now Hold ~12% of the Total Bitcoin Supply – a 5% Increase in Just One Year

While early adopters sit on profit, the newer Bitcoin Treasury companies are underwater with some, like Metaplanet and Nakamoto (NAKA), managing significant market-to-market losses.

This imposes a considerable narrative penalty.

Treasuries priced meaningfully above cost basis are perceived as capital compounders guided by strong allocators, while those below are viewed as distressed holding structures. The model’s built-in leverage—spanning price, issuance, and financial leverage—serves to magnify these effects.

As an example, Nakamoto is down:

38% in one month

83% in 3 months

Its a similar situation with Metaplanet as the figure below illustrates.

Herein lies the challenge:

A renewed expansion in premiums requires more than a Bitcoin rebound; the asset must maintain levels significantly above the $107,000 high-water marks. Only with such stability can balance sheets strengthen sufficiently to convince investors that “Bitcoin per share” reflects accretive value rather than a managed liability.

 

The Era of ‘Print Stock, Buy BTC’ is Over

In early 2025, blind accumulation was rewarded. Now, however, it demands survivability with MicroStrategy’s recent move to raise ~$1.44 in cash reserves a good indicator of this dynamic. The idea is to raise funding to cover dividend commitments while delaying forced selling. Strategy’s raise is expected to cover at least 12 months of dividend and interest commitments and a significant evolution of the Treasury model where just pure BTC accumulation is not enough. Instead, liquidity management is becoming more of a strategic priority.

BITCOIN | ~35 Firms Hold Over 1,000 BTC as Corporate Bitcoin Investments Surge in Q3 2025

Risk concentration within the Bitcon Treasury sector is also a concern. With MicroStrategy controlling over 80% of all Bitcoin help within the sector and ~72% of the Bitcoin Treasury category’s total market capitalization, concerns such as the pending MSCI consultation looking at whether to restrict such companies from major indices could make the entire basket disappear when such funds are stuck to trading at a discount permanently to the underlying BTC holdings.

According to a Galaxy analysis, as long as crypto markets remain suppressed, Treasury companies will likely trade at flat or negative premiums where:

BTC per share, the core KPI that determines whether issuance is accretive or dilutive, will stagnate or decline.

DAT equities will offer a levered downside, not upside, versus spot BTC

 

“Investors should not expect the early 2025 “equity beta > BTC beta” regime to reappear without a full reset in risk appetite and BTC making new highs. ” – Galaxy

 

This drawdown is a balance-sheet stress test. Firms with the least flexibility include those that:

Issued the most stock at the highest premium;

Bought the most BTC at cycle-top prices; and

Layered on debt against those holdings

Galaxy notes:

“Prolonged discounts plus large unrealized losses are likely to create real solvency and governance pressure. Expect potential restructurings and stronger players (including Strategy) to be well-positioned to acquire weaker ones at a discount or to simply outlast them.   

In other words, treasury companies are about to enter a Darwinian phase.

In principle, the treasury company trade isn’t dead. If and when BTC eventually prints new all-time highs, some subset of these companies will likely regain modest equity premiums and reopen the issuance flywheel. But the bar appears to be higher now. Boards and management teams are going to be judged on how they handled this first real stress test. Did they over-issue into the top? Did they preserve optionality? How did they handle the downturn? Are their shareholders willing to get back on for another ride?  

The key shift is that these companies now look less like simply “leveraged upside on BTC” plays and more like path-dependent instruments whose payoffs depend heavily on issuance strategy and entry timing.”

PRESS RELEASE | The First Bitcoin Treasury Company Receives a B- Rating from a Major Credit Rating Agency

 

 

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The IMF has issued a new report that evaluates the rapid growth of the global stable-coin market and the state of regulations worldwide – calling attention to structural vulnerabilities and the need for strong, coordinated oversight.

In its “Understanding Stablecoins” 2025 report, the IMF analysed regulatory frameworks from various jurisdictions, including the US, UK, Japan and the EU. The organisation noted that while emerging regulation can help mitigate some macro-financial risks tied to stablecoins, the overall global landscape remains highly fragmented. This fragmentation – in policy design, issuance frameworks and regulatory treatment – could undermine efforts to contain risks.

 

The IMF warned that the proliferation of stablecoins issued across various blockchains and exchanges raises serious interoperability concerns. These disparities could translate into cross-border inefficiencies and regulatory arbitrage, especially as different countries adopt different rules for stable-coin issuance and use.

STABLECOINS | Circulation of Stablecoins Doubled in the Past 18 Months, Says McKinsey

What Stablecoins are Backed By – and Where the Risk Lies

According to the report, the two largest stablecoins by market cap – Tether (USDT) and USD Coin (USDC) – are “backed mostly” by liquid assets such as:

Short-term U.S Treasuries

Reverse-repo collateralised with U.S. Treasuries, and

Bank deposits.

In particular, roughly 40% of USDC’s reserves and about 75% of USDT’s reserves are held in short-term U.S. Treasuries.

The report also notes that USDT holds a portion of reserves in cryptocurrencies (including a small share in Bitcoin).

Yet, despite these reserve-backing mechanisms, the IMF cautions the market remains vulnerable: if confidence erodes and a rush to redeem stablecoins occurs, the scale of the reserves may pose systemic risks – especially if multiple redemptions happen simultaneously.

STATISTICS | On-Chain Stablecoins Reach 2.3% of Global Payment Flows

Macro-Financial and Monetary Sovereignty Risks

The IMF elaborates a number of long-term macro-economic risks if stablecoins – particularly those pegged to major currencies – become deeply integrated into global payments and storage of value.

Key concerns include:

Currency substitution / dollarization: Widespread adoption of dollar-pegged stable-coins could weaken local currencies – especially in economies with fragile macroeconomic fundamentals. This might undermine the ability of central banks to conduct effective monetary policy.

Disintermediation of banking and credit disruption: As people shift savings and payments towards stable-coins, traditional bank deposit bases may shrink, reducing the banks’ capacity to lend – potentially stalling credit growth.

Risks to fiscal revenues and seigniorage: If stable-coin use supplants sovereign currencies, governments could lose out on seigniorage revenues (the profit made by issuing currency). This could have ripple effects on public finances.

Moreover, the IMF argues that tokenization – where assets, money, and payments can all be handled on a programmable ledger – could radically reshape global finance. While this promises efficiency and broader access, it also heightens the risks of financial fragility, capital flow volatility, exchange-rate instability, and a concentration of financial power in the hands of a few large private issuers.

OPINION | Africa’s Capital Market Opportunity: Is Tokenization the Secret Key to Unlock Africa’s Economic Potential? – By CEO, Nairobi Securities Exchange (NSE)

Regional Patterns in Stablecoin Usage

The IMF paper highlights the considerable variation in stablecoin usage regionally.

In absolute terms, the Asia and Pacific region leads with the highest volume of stablecoin activity, followed by North America. However, when measured relative to GDP, Africa and the Middle East, as well as Latin America and the Caribbean, stand out. In terms of net flows, stablecoins flow overwhelmingly from North America to other regions, where they could be satisfying local demand for stablecoins as a store of value, in addition to being used for cross-border payments.

There is also substantial heterogeneity across payment corridors, with EMDEs featuring more prominently in stablecoin cross-border flows than traditional flows. Stablecoin cross-border payment flows (about $1.5 trillion) represent only a small fraction of the global cross-border traditional and crypto payment market, which approached a value of about one quadrillion dollars in 2024.

Stablecoin flows between emerging market and developing economies account for the largest share by value. Flows from emerging market and developing economies to advanced economies, and vice versa, also represent a significant portion of total stablecoin cross-border activity.

This pattern contrasts with traditional cross-border payments routed through systems such as SWIFT, where within-advanced economy cross-border flows play a clear dominant role.

REPORT | Stablecoins Now Account for 43% of All Sub-Saharan Africa Crypto Transactions, Says Quidax

Why Regulation Alone Isn’t Enough — Need for Strong Institutions and Coordination

The IMF emphasizes that stabilizing stablecoins requires more than just regulatory patches. According to the report, robust macro-economic policies, credible institutions, and a strong regulatory framework must work together as the first line of defense. Only then can stablecoins’ risks – from asset backing, reserve liquidity, cross-border flows, and monetary substitution – be effectively managed.

The IMF therefore calls for comprehensive, globally-coordinated regulation:

Consistent legal treatment of crypto activities

Prudential and conduct rules

Anti-money-laundering and combating-financing-of-terrorism (AML/CFT) compliance

for all entities issuing, trading, custodying or transferring crypto assets.

For “systemic stable-coin arrangements,” additional oversight – similar to the regulation of financial market infrastructures – is needed.

G-7 Countries Agree to Step Up Efforts for Tighter Crypto Regulations Set by FSB and FATF Travel Rule

What This Means for Emerging Markets (and African Economies)

Several factors could affect the future demand for stablecoins. These include the attractiveness of the underlying currency vis-à-vis the local currency, new use cases, enabling legal and regulatory frameworks, and ease of access. The demand for stablecoins is closely linked to the demand for their currency of denomination. As the vast majority of stablecoins are currently denominated in US dollars, their growth will likely hinge on the continued dominance of the dollar in trade, foreign exchange reserves, international loans, international debt, foreign exchange turnover, and global payments.

New use cases can also support higher demand for stablecoins. Currently, stablecoins are used as on- and offramps from unbacked crypto assets and to some degree for cross-border payments. Going forward, these use cases could grow. Moreover, new use cases could emerge.

First, stablecoins could be used to pay for tokenized financial assets. Their wider adoption in this case depends on the growth of the tokenized sector.

Second, they could expand into domestic retail payments for goods and services.

The latter would likely require deeper integration with existing payment rails and broader merchant acceptance, which may find greater traction in countries with underdeveloped payment systems, where they could offer a lower-cost and more convenient alternative payment method.

To the extent that stablecoins provide easier access to foreign currency for firms and individuals in emerging markets with weak currencies and high inflation, the demand for these instruments could increase further.

For countries with weak financial systems, volatile currencies or unstable monetary policy – conditions common across many African economies – the growing footprint of stablecoins could pose a dual-edged sword. On one hand, stablecoins offer cheaper cross-border payments, faster remittances and potential financial inclusion. On the other hand, if unmanaged, stablecoin adoption could destabilise local currencies, undermine sovereign monetary control, erode bank deposit bases, and ultimately weaken financial stability.

This makes the IMF’s call for strong domestic institutions, transparent regulation and international coordination especially urgent.

EXPERT ANALYSIS | ‘In Emerging Markets, High Penetration of USD-Linked Stablecoins in Particular Weaken Monetary Transmission,’ Warns Moody’s Ratings

 

 

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Intensifying crypto regulation may increase compliance costs for crypto-asset service providers (CASPs), but it is highly unlikely to eliminate the cost advantage of cryptocurrency-based financial products — and that resilience comes down to the structural efficiencies of crypto, say leading voices in South Africa’s industry.

According to Luno’s country manager for South Africa (Christo de Wit) and VALR co-founder and CEO (Farzam Ehsani), crypto-based services remain structurally more efficient than traditional-finance equivalents even under regulatory pressure.

 

“Blockchains and crypto assets represent a paradigm shift in how finance works,” said Ehsani.

“Crypto services such as payments are a fraction of the cost of their traditional-finance counterparts and will be increasingly adopted by the world as time goes on.”

 

Even with added compliance overhead, Ehsani said crypto-asset services deliver a “step-change” in the efficiency of financial services – particularly in terms of speed and cost when it comes to global payments.

De Wit echoed the sentiment, emphasizing that crypto products are “structurally designed” to outperform traditional finance.

REALITY CHECK | Why African Customers Are Moving Away From Traditional Banking

Self-Custody: a Core Differentiator

Beyond cost and speed, crypto has another major advantage: the ability for individuals and institutions to self-custody their digital assets. Ehsani emphasized this as a key divergence from traditional finance.

“With crypto assets, everyone has the option to self-custody, eliminating the need to trust intermediaries,” he said, noting this is “not possible in traditional finance, where every asset … must by definition be held by a trusted intermediary.” 

 

He added that while intermediaries such as VALR will continue to provide services to those who prefer them, the mere existence of self-custody alters fundamentally how people hold and control value.

[EXPLAINER GUIDE] How to Keep Your Self Custodial Wallet Safe

Regulation – Including the Travel Rule – Likely Won’t Kill Self-Custody

Asked whether evolving regulation – meant to comply with global requirements on anti-money laundering (AML) and counter-terrorism financing (CTF) – might eliminate the self-custody option, De Wit acknowledged that “friction” is already increasing, pointing out that South Africa implemented its version of the Travel Rule from 30 April 2025. Under that rule, financial institutions involved in virtual-asset transactions must provide originator and beneficiary information with each transaction.

REGULATION | The Travel Rule Takes Effect in South Africa and Regulated Crypto Exchanges Are Complying

That regulatory burden, he argued, doesn’t necessarily force users back onto traditional finance rails. Instead, the added procedures are “necessary friction … to adhere to global AML/CTF processes and protect consumers.”

He said crypto’s structural efficiencies hold firm even under compliance overhead, and that blockchain – with appropriate reporting – remains more efficient than legacy systems like cross-border transfers via SWIFT.

 

A Coming Fusion — Where Banking and Crypto Converge

Looking ahead, Ehsani predicted a future where the line between traditional banking and crypto services fades: blockchain infrastructure will be integrated into financial institutions, and crypto offerings will become ubiquitous.

He noted that VALR has already signed agreements with a major African money-transfer business – Mukuru (which serves over 17 million customers) – as well as two of South Africa’s largest banks, with more partnerships expected.

PRESS RELEASE | VALR and Mukuru Partner to Advance USDC Stablecoin Savings in Africa

That, he argued, signals that “there won’t be any financial institution without a crypto offering in the next few years,” and that VALR is positioning itself as the infrastructure provider powering those offerings.

Meanwhile, the fact that Discovery Bank recently announced a first-of-its-kind partnership with Luno – integrating crypto services directly into its mobile banking app – reinforces the idea that crypto and traditional finance are already beginning to merge.

Ehsani compared this to banks’ initial scepticism toward the internet: just as most banks eventually embraced online services, he believes the same will happen with crypto.

“It’s just a matter of time before traditional finance and crypto finance merge to become the future of finance.”

EXPERT OPINION | Stablecoins Are Expanding the Definition of What We Call ‘Money’

 

 

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