🌍💱 ADAPT: Transforming Africa’s Trade with Digital Public Infrastructure

Both #Stablecoins and Digital Public Infrastructure (#DPI) are generating global buzz—yet most initiatives focus on national solutions. Now, an ambitious project is combining both, claiming to redefine Africa’s digital future at scale: The African Continental Free Trade Area (AfCFTA) has launched ADAPT, a pan-African initiative in partnership with the IOTA Foundation, Tony Blair Institute, and World Economic Forum. This open-source digital public infrastructure is set to revolutionise cross-border trade by seamlessly integrating identity, data, and finance.

What they want to achieve:

• Double intra-African trade by 2035, unlocking over $70 billion in annual trade value.
• Reduce cross-border payment fees from 6–9% to below 3%, saving an estimated $25 billion annually.
• Cut border clearance times from up to 14 days to under 3 days through digitised, verifiable trade documents.

How It works:

ADAPT will establish a unified system for:

• Trusted digital identities for businesses and governments.
• Secure cross-border data exchange, supported by smart contracts and IoT tracking.
• Interoperable finance, connecting mobile money, banks, and stablecoins like USDT for faster, cheaper settlements.

Pilot phase:

Deployment is said to begin in Kenya, Ghana, and a third country in 2025–2026, with continental expansion by 2035. The initiative references successful pilots in Kenya and Rwanda, where digitalisation has already resulted in reduced clearance times and documentation costs.

In response to steep cuts in foreign aid, #Zambia, #Zimbabwe, and the Democratic Republic of the Congo (#DRC) are significantly boosting their funding for family planning programs. This shift towards domestic financing aims to protect decades of progress in reproductive health and ensure continued access to birth control for millions of women and girls. See article from The Guardian.

• Zambia is increasing its budget from $4.5m to $7.5m,
• Zimbabwe is adding $2.25m annually, and
• the DRC is introducing a $5m annual budget for contraceptives.

This move reflects a broader trend towards self-reliance in healthcare funding, driven by the need to address the fragility of donor-dependent health systems.

The fact that governments are now stepping in to secure essential public services reminds me of the case that Nobel laureate Angus Deaton made against foreign aid: ‘My argument is […] that aid undermines the contract between government and the governed that is essential for successful development.’

Adopting this perspective, we see governments taking responsibility for key public services themselves instead of relying on foreign institutions that also bring their own agenda.

Following Deaton’s argument, international donor structures should not simply be called upon to step in, but rather engage in honest discussions with their partners to change their approach to international cooperation.

Thoughts?

Angus Deaton discussing Easterly’s book „Tyranny of Experts“, with relevant thoughts on the issue.

Connecting the world – but at what cost? 🛰️🌍

Satellite internet is a game-changer for rural and underserved regions, where traditional infrastructure falls short. Almost 10,000 Starlink satellites are already in orbit, delivering fast internet to places that were previously offline. That’s progress.

But here’s the catch: Every day, one to two of these satellites re-enter the atmosphere and burn up. If other mega-constellations launch as planned, we could soon see five satellites crashing back to Earth daily. The aluminum oxide released could alter the upper atmosphere and even impact the ozone layer by 2040.

We’re solving one problem—digital divide—while creating another: a new layer of atmospheric pollution. And with plans for 30,000+ satellites, the risk of a Kessler Syndrome (a cascading collision chain) grows every day.

How do we balance global connectivity with the health of our planet?

tl;dr: Satellite internet bridges gaps, but 5 daily crashes risk our atmosphere. Progress or problem? #DigitalDivide #SpaceDebris #SustainableTech

For more insights, check out the full article (in German).

BeZero’s spatial database of over 3,000 nature-based projects across 20+ registries addresses issues of scattered data, enabling accurate overlap detection and stronger methodologies. Mapping every project, regularly updated – basis for a relevant rating service.

#Uganda next to announce a #CBDC #CentralBankDigitalCurrency pilot.

What’s interesting is the reasoning given for this approach:

Uganda aims to become a regional hub for #tokenised #finance. This initiative aims to bring over $5 billion worth of real-world assets #RWA onto the #blockchain, with a focus on sectors such as #agriculture and #renewable #energy.

The CBDC is planned to be a digital version of the Ugandan shilling, backed by Ugandan government treasury bonds, and is designed to serve as a core payment and settlement layer within the country’s evolving tokenised asset ecosystem.

Both the CBDC and the broader push for tokenisation are based on a permissioned blockchain platform provided by the Global Settlement Network, which is not one of the top-tier blockchain layer 1s and has limited information publicly available.

It will be interesting to see if we hear more about this pilot.

See the press release

For an overview of CBDC projects, visit the great CBDC Tracker

🚀 Breaking Down the Stack: Why Web3 Payments Can Transform Support in Fragile Contexts

In places hit by war or disaster, financial infrastructure is often broken—or nonexistent. Traditional support faces security risks, high costs, and a lack of transparency. But what if we could deliver assistance that’s secure, traceable, and inclusive, even where banks don’t exist?

Web3 payments can offer a powerful solution. By leveraging blockchain, it can enable fast, transparent transactions, empower communities, and give donors real-time visibility. Yet, success isn’t just about tech—it’s about people, partnerships, and collaboration.

Why break down the stack?

• Demystify the technology – Help program managers, donors, and practitioners understand what’s needed and why, so they can make informed decisions.
• Prepare for full-scale deployment – Clarify roles, interactions, and procurement needs to move from pilot to program with transparency and confidence.
• Ensure nothing is overlooked – From wallets to on/off-ramps, every component must be accounted for to build a system that truly works in the field.

The real challenge ahead? Moving from pilot to full-scale impact. That’s where you come in.

If you’re already involved in similar projects or pilots, let’s share our experiences and refine these models together.

🔗 Read more: Breaking Down the Stack: What It Takes to Implement Web3 Payments for Lasting Impact

#Web3 #HumanitarianTech #DigitalPayments #InnovationForImpact

🌟 Honored to have been part of workshop on “Harnessing the Potential of Digital Sustainable Finance to Accelerate the Agenda 2030” in Bonn! 🌟

A big thank you to the German Institute of Development and Sustainability (IDOS), SOAS Centre for Sustainable Finance and particularly Prof. Ulrich Volz for organising such an insightful event.

During the morning of this full-day workshop, I participated in a closed-door roundtable that explored ‚Rethinking capital market infrastructure to scale up sustainable finance‘ and ‚Fostering inclusive green finance through digital solutions‘. The presentations and discussions were enlightening with valuable contributions from Yuen Lo and Peter Knaack.

When I was on the panel after the official book launch, the panel was asked to single out the most important innovation in this area. While I made it clear how digital payments #web3 #stablecoins can really help, I specifically emphasised the huge potential of #biodiversity #certificates in dealing with the big problems we’re facing.

It was a pleasure to engage with esteemed speakers including Dr. Erica Moret, Amb. Prof. Bitange Ndemo, and Dr. Iliya Nickelt.

If you missed the live stream, the book “Sustainable Digital Finance” is available as a PDF or EPUB via open access at Springer.

#SustainableFinance #DigitalFinance #Agenda2030 #Sustainability #FinanceForGood #FutureOfCooperation

🌐 Building Resilient Digital Transactions in Fragile Contexts with Web3 🌐

In fragile environments, secure and inclusive digital transactions can transform lives. I recently revisited the technology and economics behind these solutions and sketched out the stack required to make them work.

Why does this matter? Clarity is key—both for didactics and procurement. Explicitly breaking down the stack helps generate a common understanding, especially when discussing setup with non-technical stakeholders. It also ensures that expected services are properly defined during procurement.

This is how I currently understand the stack to come together:

🔗 Public Blockchain layer 1/2: The foundation—like Algorand, Cosmos, Ethereum, Gnosis, Linea, Polygon, or Stellar—delivering security, transparency, and smart contract capabilities.

💰 Stablecoin: Digital currencies like USDT, USDC, and EURS, providing stability and enabling seamless cross-border transactions.

⚙️ Stablecoin Management: Platforms such as ensuring compliance and smooth integration with APIs and tools.

🔒 (Regulated) Onramp Service Provider: The regulated gateway for converting fiat to digital assets, ensuring trust and accessibility.

👛 Wallet: User-friendly digital wallets enabling secure storage and transactions, even offline.

💱 Offramp & Liquidity Services: Services bridging digital assets to local currency and ensuring liquidity, such as mobile money providers or local liquidity vendors.

This space is still evolving, with overlaps and players emerging as solution providers—integrating parts of the stack.

👉🏻 Does this resonate? Does it help you understand the space better? Do you see yourself in this stack?

🔍 TL;DR: Web3 is reshaping digital transactions in fragile contexts. From blockchain infrastructure to regulated onramps and user-friendly off-ramps, every layer matters. Does this help you? Let’s discuss! 🚀

Stablecoins: Why the Fundamentals Matter 💰🔗

As stablecoins gain traction, especially in development and humanitarian contexts, it is worth revisiting some of the fundamental risks. The 2020 paper Stablecoins 2.0: Economic Foundations and Risk-Based Models (Klages-Mundt et al.) still serves as a timely reminder that: Not all stablecoins are created equal, and their risks are often underestimated.

For custodial stablecoins (those backed by reserve funds), three core risks stand out:

• Counterparty risk: Your trust is only as strong as the custodian’s solvency and integrity. There is no deposit insurance here.
• Censorship risk: Centralised control means redemptions or issuance can be blocked.
• Economic risk: If the value of the reserve assets fluctuates, so does the value of your ‘stable’ coin. Simply being pegged does not guarantee stability.

The paper’s framework remains relevant today, particularly as institutional adoption increases. When using stablecoins in high-stakes environments such as aid or remittances, these shouldn’t be abstract concerns.

🔗 Read the paper

MoneyGram Launches Stablecoin-Powered Remittance App in Colombia 🌎💸

MoneyGram has introduced a new mobile app in Colombia that integrates USD-pegged stablecoins (USDC), enabling users to receive, store, and manage funds in dollars rather than local currency. The app leverages the Stellar blockchain ⚡ and Crossmint’s wallet infrastructure to facilitate fast, low-cost transactions—without requiring a bank account.

Context: Why Colombia? 🇨🇴 Colombia is a major remittance market, where families receive over 22 times more in inflows than outflows. With the peso’s value fluctuating significantly in recent years, stablecoins offer recipients a way to preserve value and avoid exposure to local currency depreciation.

Key Features

• USDC as the in-app currency: Provides stability and transparency. 💵
• Blockchain-powered transfers: Enables near-instant, low-cost transactions. ⚡
• Global cash network: Access to 500,000+ retail locations for easy cash withdrawals. 🏦

Broader Implications The global remittance market exceeds US$860 billion annually, often characterised by high fees and slow processing times. By adopting blockchain technology, MoneyGram aims to reduce costs and improve efficiency. This initiative also raises questions about the potential dollarisation of local economies, as users gain direct access to dollar-denominated digital assets.

What’s Next? The app is now live in Colombia, with plans for expansion. A key factor to watch: whether the cost savings from blockchain-based transfers will be passed on to end users, potentially pressuring traditional remittance providers to innovate.

This development marks a significant step in the evolution of cross-border payments, blending digital currency with an established global network. Read the full press release.

#Remittances #Stablecoins #Fintech #Blockchain #DigitalPayments