It makes payments for employees, distributors or suppliers possible without using cash or the US dollar as a middle currency.
In September, a subsidiary of the Bank of China (BOC) was launched in Mauritius which has been touted to have the potential to be a “Blockchain Valley” for the continent.
However, a key subject that is still creating a form of contention across the continent is the introduction of regulatory measures for digital currencies. Most African governments still view such currencies with caution.
Relatedly, another Bitcoin exchange with a wide network in Africa and a direct connection with Asian countries is BitX. It operates in Nigeria and South Africa as well as Indonesia, Malaysia and Singapore on the other end.
So far in 2016, trade between China and Africa has been estimated at $220 billion, a rise from $170 billion in 2013 according to the World Bank.
Bitcoin has also been suggested as a plausible trading medium between China and African countries like Ethiopia where international transactions have increased of late for the buying of raw materials and to save on the foreign exchange required for the transfer of asset across borders.
This will likely change in the coming years if moves by Uganda and Nigeria to discuss the possibility of regulating digital currencies such as Bitcoin is anything to go by. Then, we may get to see an expansion of similar services from parts of Africa to China.
A Kenyan startup’s new product that allows companies in Africa to send payments to China using Bitcoin is the latest in the line of digital currency-related initiatives that connect countries from both ends.
Some China-Africa crypto-related initiatives have made the news of late but none has been so direct.
The founder of Bitpesa, Elizabeth Rossiello, for example, hinted on the lack of cooperation between regulators and Blockchain players in Kenya at the recently-held Blockchain Workshop by the Coalition of Automated Legal Applications in Nairobi.
Key issues the new scheme addresses are the high cost of sending payments from Africa to China which remains high and the timeframe required which often takes days for such transfers to settle on the other end.
Earlier this year, Beijing-based Bitcoin mining giant Bitmain invested $1.6 million in Shenzen-based BitKan, a Bitcoin data and trading services provider, with a view to providing a platform for people worldwide especially those in non-mature Bitcoin markets such Africa to trade in the digital currency.
Bitpesa’s China scheme was launched this month to allow users in Kenya, Uganda, Tanzania, Nigeria and the Democratic Republic of Congo make online payments to clients in Asia – particularly China which is now Africa’s largest trade partner.
Chip Maker TSMC Forecasts Weaker Crypto Mining Demand in Q4
Chip-making giant Taiwan Semiconductor Manufacturing Company (TSMC) has predicted weak demand for processors from cryptocurrency miners for the fourth quarter.
TSMC, the primary supplier for crypto
Crypto Exchange Huobi Now Lets Users Swap Between 4 Different Stablecoins
Huobi, the Singapore-based cryptocurrency exchange, has just launched a new solution that enables users to switch between different types of fiat currency-pegged cryptocurrencies, or stablecoins, in e
Bitcoin Price Eyes Triangle Breakout Above $6.4K
Bitcoin (BTC) is again trading in a narrowing price range above $6,400, but the lateral trading may soon give way to a rally, according to technical studies.
The price consolidation comes after Mon
Security firm G4S Has Launched a Crypto Custody Service
U.K.-based security services company G4S now offers a crypto custody service aimed to protect investors' holdings of digital assets.
Announcing the move in a press release on Oct. 16, the firm said
Gates Foundation Partners With Former Ripple CTO's Blockchain Project
The Bill and Melinda Gates Foundation has partnered with blockchain startup Coil as part of its mission to provide payment services for the unbanked.
The news comes via a tweet from Miller Abel, th
Mt Gox's Bitcoin Creditors Have 4 Days to Submit Rehabilitation Claims
Clients of the defunct crypto exchange Mt. Gox must submit claims for trapped funds by Oct. 22.
As previously reported by CoinDesk, the exchange first opened up the claims process in August, follow
Crypto Exchange Coinbase Open-Sources Its Security Scaling Tool
U.S.-based cryptocurrency exchange Coinbase is making a recently developed automated security scaling tool available to the public.
Called Salus, after the Roman the goddess of safety and well-bein
The SEC Is Setting Up a New Division to Talk to ICO Startups
The U.S. Securities and Exchange Commission (SEC) is launching a new division with the goal of making it simpler for fintech startups – including those launching initial coin offerings (ICOs) – to nav