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Ghana Should Invest 1 Percent of Reserves in Bitcoin Says Groupe Nduom VP



ghana reserves in bitcoin

The vice president of Groupe Nduom, Papa-Wassa Chiefy Nduom, is of the opinion that the Central Bank of Ghana should invest one percent of its reserves in bitcoin. He believes that all 13 English speaking African countries should invest in bitcoin. With the dollar predicted to drop in value by up to 10 percent against other reserve currencies in 2018, Nduom is keen on advocating for a new reserve asset for African central banks.

Nduom told Ghana Web:

“Central banks in Africa may buy Euros, Swiss Franc [….] but they can also invest in bitcoin because big investors in the world believe that bitcoin is the new digital reserve currency.”

Why Should the Central Bank of Ghana and other African Central Banks Invest in Bitcoin?

According to a report by Citifmonline, Nduom believes the Central Bank of Ghana should invest in bitcoin for the following reasons:

  • High Potential Returns

If bitcoin hits $100,000 – and the chances are high according to predictions by several financial experts – an investment in bitcoin could mean high returns for African central banks. The risk in investing in such a volatile digital currency is huge, but Nduom feels that the risk might be worth it for the sake of industrialization and decreasing poverty levels.

  • Increased Foreign Exchange

Investing in bitcoin can increase the flow of foreign exchange in Ghana. As reported by Ghana Web, the VP of Groupe Nduom stated, “[….] Ghana trades in the digital currency will not be subject to tax or capital gains but will tax the profit that the exchange [has made]. That could result in massive inflows of foreign currencies in Ghana.”

  • Keeping Pace With the Rest of the World

Africa is often left behind in matters technology and Nduom believes that when central banks invest in bitcoin, this gap can be bridged. Perhaps digital currencies are Africa’s opportunity to once and for all keep pace with the happenings in the rest of the world. In any case, the chance to make the most out of bitcoin is equal across the board. No country has a head start or any other kind of advantage.

  • Working Together as a Continent

Chiefy Nduom envisions a continent that leverages digital currencies such as bitcoin to fund infrastructure development. He implies that African countries have created rigid borders instead of working together for the good of the continent as a whole.

The Blockchain is Valuable

Besides investing in a new digital asset, Nduom advises the Central Bank of Ghana to adopt blockchain technology as well. The blockchain has the potential to completely change the financial sector. Therefore, central banks should get on board as soon as they can.

On the other hand, when the blockchain is used in tracking national expenditure, transparency will prevail. For instance, a recent change in the Ghanaian governance found the new leadership grappling with $1.6 billion in expenditure that the former government had left undisclosed. In such a case, the blockchain would have prevented such a scenario from taking place. That is because the blockchain is decentralised, cannot be tampered with and can be publicly viewable.

In view of Nduom’s opinions, African central banks have a chance to change the African narrative. That is to say that the African continent has a chance to establish itself as a benchmark in the blockchain and digital currency use cases. What’s more, every sector be it insurance, finance, manufacturing industry, and government, should be ready and eager to invest its resources in the blockchain and digital assets for overall development.


Bitcoin Remittance Startup BitPesa Launches in Ghana



BitPesa Secures Funding

Nairobi-based bitcoin remittance startup BitPesa has launched in Ghana to continue the growth of its footprint in the West African region. The platform will enable Ghanaians to make low-cost global payments using their local currency, the Cedi.

BitPesa’s services will make it easier for Ghanaians to make GHS payments that will settle in more than ten currencies, including NGN, UGX, and ZAR. This move shows the company’s dedication “to facilitating intra-Africa trade by increasing the ease and speed of doing business in Ghana”.

Launched in Nairobi, Kenya in 2013, BitPesa, is a digital payment and foreign exchange platform that utilises the Bitcoin blockchain to boost the speed of business payments while lowering the transfer cost to and from frontier markets. With its best-in-class products and customer service, BitPesa seeks to significantly reduce the cost of payments from Ghana to other markets such as Nigeria, where it already has operations. Ghana was BitPesa’s “natural choice for expansion” since it is the second largest economy in the West African region after Nigeria.

BitPesa’s CEO, Elizabeth Rossiello, said in a company press release:

“We are constantly looking for ways to promote intra-African trade, so we’re very excited about our services in Ghana.”

“Ghanaians should be allowed to make global payments using their own currency and we are excited to facilitate this. We will continue to improve service offerings, compliance, and value for our new Ghanaian customers,” she added.

BitPesa’s platform makes it possible for businesses to make payments in multiple currencies and has operations in Kenya, Nigeria, Uganda, Senegal, DRC, the UK and Europe. Following the launch, Ghanaian customers will be able to buy and sell bitcoin on the online platform with businesses being able to make payments intra-Africa to Ghanaian mobile accounts. Currently, BitPesa is connected to two mobile networks in Ghana with more services expected to come with time.

The move comes weeks after BitPesa made its acquisition of TransferZero, a leading Madrid-based digital payments company, expanding its footprint in the Caribbean and Latin America markets.

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Father Defends Son Against Fraud Allegations by Claiming Bitcoin Hack



Fraud Allegations by Claiming Bitcoin Hack

A South African court is handling a fraud case where a farm owner’s son is being accused of misappropriating investor funds and thereafter fleeing abroad. Speaking before the Pretorian High Court the desperate father insisted his son should not be held responsible for the loss of R1.3 billion of his investor’s money and instead blamed hackers.

Alleged Theft of Bitcoin Funds

The son, A’ri’El Willem Theron, reportedly began his alleged pyramid-like investment scheme in 2015, going by the name Love and Let’s Live (LLL).  Following a warning from the Financial Services Board stating he was not a licensed financial services provider and subsequent freezing of his accounts, investors funds were moved to Panama. However, when investors demanded refunds Theron Jr. told them the money had been used to buy bitcoin, which had then been stolen from storage by a hacker.

He even went ahead to tell them he had left the country seeking to start fresh and that he was sorry about the situation. The trading scheme was wound up last month with the company’s liquidators applying for the liquidation of Ruby Success, a farm owned by his father. Liquidators have argued R41 of the money out of which Theron Jr. managed to defraud investors was used to purchase the farm for his father, Andre Theron.

Only last week, Andre Theron unsuccessfully tried to convince the court not to liquidate his company Ruby Success Inc., which owns the R57 million farm in Mpumalanga. The court gave him a respite until April 5, 2018, where he should provide reasons why the company should not be liquidated.

Prelevance of Bitcoin Scams in South Africa

Interestingly, reports surfaced a few weeks ago of several South Africans having been conned after investing in a suspected bitcoin Ponzi scheme. Many investors had invested anywhere between R16,000 and R1.4 million worth of bitcoin with BTC Global and had received inconsistent payouts until mid-February when they stopped entirely. While the firm has denied any wrongdoing the architect behind the scheme has since gone underground and is being pursued by authorities.

For the case of Theron Jr., his father asserts that his son took precautions and stored more than double of his investors’ funds offshore to cover investments. He also said his son used the funds to buy bitcoin since after the closure of his accounts it was the only viable way to pay investors. He denied any of the proceeds of the scheme had been used to purchase the farm or he and his son were fraudsters, alleging Theron Jr. had lost R700 million of his own money in the scheme. Meanwhile, prosecutors are following up on leads gained from the father’s testimony when he let it slip his son may be hiding in Ireland and hope to apprehend him soon.

It has become common practice among bitcoin-related Ponzi schemes to claim that they were hacked when they disappear with investors’ funds, which puts Andre Theron’s statement that his son’s funds digital currency holdings were hacked and stolen into question.

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Cryptocurrency Market Analysis March 16, 2018 – HODL: Friend or Foe?



Cryptocurrency Market Analysis

The ‘HODL’ strategy that everyone has been talking about during the beginning of the cryptocurrency market fall, is now fading away. Regulations, rumours, and ad banning by Google and Facebook managed to crumble investors’ trust in this market. Having said that, the blockchain has gained a lot of popularity all around the world. We still believe that even after a big tumble, as this one, cryptocurrency values will come back skyrocketing again, aiming for at least one trillion in total market value by the end of this year.

Price Analysis

Bitcoin (BTC)

In our previous analysis, we were expecting for the price to move sideways and even drop again to retest the local support from $9,000. The price did move in a sideways direction and this week broke below to retest a strong support at $7,500.

Currently, the candlestick patterns emerged above the mentioned support are indicating a low bullish signal, which can get stronger if this week will close back above $9,000. Otherwise, we could see a continuation of the down move, slowly heading for the key level support from $6,000.


Ethereum (ETH)

Ether proved itself stronger at the beginning of the week, but it was also pulled into the whirlpool in which the entire market entered at the end of last year. As we expected, bulls could not breach above the latest highs, at the end of February, and currently is trading in a key support area, right above the $600 level.

For the moment bulls seem to have balanced the power and the drop could see a short break around these levels. A strong move upwards is highly unlikely in the following week, and prices could see some stability below $800.


Ripple (XRP)

The Ripple company has been very active in the media lately promoting new partnerships for their services, but the XRP continued the down move alongside the other cryptocurrencies.

Currently, the price action shows a slowdown of the drop at the key support area around $0.70. This drop just builds up a stronger accumulation area. Even though the bears’ pressure has yet to dissipate, the wheel might soon turn in the favour of the bulls.



Buroka Tech

This cryptocurrency market analysis is being presented by Buroka Tech. Buroka Tech is cryptocurrency-focused technology provider for financial institutions. 

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