Posts in: web3

Another partnership in line with what’s been happening regularly these days: a payment service teams up with a web3/stablecoin player. But this time, there are some notable twists.

The payment player is M-Pesa, the lighthouse digital payment service that rewrote payments in Africa and beyond. Launched 18 years ago, it now serves over 70 million people in 170 countries—34 million in Kenya alone—all on plain mobile tech.

The blockchain partner is ADI Chain. Even those deep in the space might ask: Who is ADI?

It’s a Dubai-based Layer 2, claims to be the first institutional chain in the MENA region, and has serious backing: founded by Sirius International Holding (the digital arm of IHC, a $240B holding company and the largest listed firm in MENA). It went live on mainnet this autumn, with a clear mission, as usual with the big numbers: bring 1 billion people on-chain by 2030, focusing on markets in the Middle East, Asia, and Africa that lack access to blockchain’s real-world benefits. Its cryptocurrency is pegged to the UAE Dirham and regulated by UAE authorities.

This isn’t just another announcement—it’s a signal of institutional blockchain adoption at scale.

#Blockchain #DigitalPayments #FinancialInclusion

🌍💱 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.

While #stablecoins are still built on more or less popular public blockchains, one of the #stablecoin market leaders, #Circle, is now working to establish its own layer 1 blockchain, #Arc.

For context, revisit my view on the stack for web3-based payments in fragile contexts.

Read the press release

#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

🚀 From “Crypto? No Thanks!” to “We’re All In” – How Traditional Finance Did a 180° on Digital Assets

For years, traditional finance #TradFi treated crypto like a risky, volatile experiment—something to be ignored, dismissed, or even openly criticized. “Too speculative,” they said. “No real-world use,” they claimed. Many followed suit, writing off blockchain and stablecoins as a passing fad.

But look at the landscape now.

The same institutions that once turned up their noses are now racing to lead the charge. Two major banking consortia have emerged, signaling a seismic shift in how finance views digital assets:

1️⃣ The G7 Powerhouse: 10 Global Banks Exploring Stablecoins

These titans are jointly exploring blockchain-based stablecoins pegged to G7 currencies—a far cry from the days of skepticism.

2️⃣ The Euro Alliance: 9 European Banks Launching a Euro Stablecoin

Their goal? A euro-denominated stablecoin to challenge U.S. dominance in digital payments.

Why the Sudden Change?

• Regulatory clarity (e.g., MiCA)
• Fear of missing out as crypto adoption surges
• The rise of tokenized assets—banks now see real value in blockchain efficiency

To be clear: This is far from the original vision of decentralized finance. But it undeniably opens a door to digital assets—and that door won’t be closed again.

The message is clear: Crypto isn’t just for “the others” anymore. The same banks that once warned against crypto are now using it.

Question for the comments: Is this a genuine evolution—or just FOMO in disguise? And what does it mean for the future of money?

#DigitalAssets #Stablecoins #BankingRevolution #Blockchain #Finance2025

🚀 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