Binance Acquires CoinMarketCap; Checkout.com Joins the Libra Association; Central Banks Experiment with CBDCs; a16z Raises $515M for New Crypto Fund

April has been very interesting and super intense month in the Blockchain & Crypto world. Binance, the world’s biggest cryptocurrency exchange, has reached an agreement to acquire CoinMarketCap, one of the most-referenced crypto data websites, in an undisclosed deal; British payment startup Checkout.com has joined Facebook's Libra Association, becoming the 24th member engaged with the mission of building a better global payment network; top venture capital firm Andreessen Horowitz is expanding its presence in the crypto sector raising $515 million for its second crypto-focused fund; to name just a few.

So without further ado, let us dive deeper into what was trending and hot in Blockchain and Cryptocurrency world past month.

Bank of France Launches Experiment Program on Central Bank Digital Currency

The first week of April began with a very interesting news - as a number of global jurisdictions like the Bahamas and Sweden are already testing their central bank digital currencies (CBDC), French Central Bank is getting more straightforward regarding its own CBDC plans.

The Bank of France is now officially launching a program of experiments to test the integration of a CBDC for interbank settlements, inviting potential participants to submit their applications.

According to a March 30 document, France’s central bank is calling for applications to experiment with the use of a digital euro, aiming to explore the potential CBDC opportunities for clearing and settlement of tokenized financial assets. Although the Bank of France previously called for blockchain-based settlement systems in Europe, the bank said that it doesn’t impose any specific technology within its newly announced CBDC experiment program.

As such, French central bank will select a maximum of 10 CBDC-related applications by groups or individuals, establishing “innovative nature” as a major selection criterion. According to a detailed document calling for applications, applications must be submitted by European Union-based applicants or in a state party to the European Economic Area agreement. Applicants can submit until May 15, 2020, while selection of applications will take place on July 10, the bank announced.

The bank’s CBDC experiment has three objectives such as modeling as CBDC-based interbank settlement and identifying benefits and analyzing the potential risks. Among three potential CBDC use cases, the Bank of France outlines payment against financial instruments, payment against other central banks’ digital currency and payment against digital assets.

The bank emphasized that it will not engage in money creation within its CBDC experiment. Additionally, the central bank noted that it will be destroying the token reflecting the amount in euros in digital form at the end of the accounting day on which payment was made.

The Bank of France also highlighted that it doesn’t plan to apply any project on a wider scale, stating:

These experiments will act as a contribution by the Banque de France to a broader discussion within the Eurosystem, which will make any decision on whether to set up a CBDC. The tests are not intended to be continued on a long-term basis or applied on a wide scale by the Banque de France itself.

Nigeria Becomes Eighth African Nation to Welcome Bitcoin ATMs

During the same week, Africa’s largest country has welcomed its first Bitcoin ATM. Blockstale BTM, the company that installed the ATM in the Dazey Lounge and Bar in Lagos state, plans to launch more than 30 more terminals across Nigeria.

“Despite all the legal uncertainties about cryptocurrencies in Nigeria, Nigerians happen to be the highest crypto traders in Africa,” Blockstale’s chief executive and founder, Daniel Adekunle, told local media on April 1. 

Adekunle developed his Bitcoin ATMs in partnership with a tech firm based in Shenzhen, China. Despite being home to the largest trade volume in Africa, Nigeria is the eighth country in the continent to host a Bitcoin ATM — with Blockstale’s comprising the 15th in Africa.

According to CoinATMRadar, South Africa is home to seven crypto ATMs, Ghana hosts two, and Botswana, Djibouti, Kenya, Uganda and Zimbabwe each have a single terminal. With Nigeria comprising Africa’s largest economy and population, the country’s first Bitcoin ATM may be a signpost for broader adoption across the continent. Coinstale’s terminal is only the second Bitcoin ATM in West Africa.

Recent weeks have seen roughly 220 Bitcoins, or $1.38 million worth, of peer-to-peer (P2P) trade between BTC and Nigerian Naira on LocalBitcoins. However, Nigerian LocalBitcoins has dropped by roughly 50% since the P2P platform strengthened its KYC requirements during September 2019.

Nigeria also consistently tops Google searches for ‘Bitcoin’ — driving nearly twice the traffic as the second-ranked country, Austria, according to Google Trends. We must note that three of the top five ranked nations for ‘Bitcoin’ searches are African — with South Africa and Ghana ranking third and fifth respectively.

Binance Acquires CoinMarketCap

Finally, while global markets are experiencing tough times amid the coronavirus pandemic, the crypto industry is getting stronger as its core players have tapped one of the biggest crypto mergers in history.

Binance, the world’s biggest cryptocurrency exchange, has reached an agreement to acquire CoinMarketCap, one of the most-referenced crypto data websites, in an undisclosed deal. The companies officially announced the acquisition on April 2.

Changpeng Zhao, founder and CEO of Binance, said that Binance and CMC are very similar, as they are both providers of “access-to-crypto” and share a vision of making crypto assets more accessible and useful for people around the world. Zhao said:

The acquisition will enable us to build on each other's strengths, and further grow and instill transparency in the industry.

Zhao said that the company has been in talks with CMC for a few months before closing the deal in April. While the acquisition is rumored to have cost Binance $400 million, Zhao said that the company cannot disclose the amount of the deal, as it is protected by a non-disclosure agreement.

While the companies are going to work closely together, CMC will still continue to operate as an independent business entity, both Binance and CMC emphasized. Zhao stressed that the acquisition will not change CMC's independence from external stakeholders:

Binance has no bearing on CoinMarketCap rankings. CoinMarketCap stays committed to providing the most accurate, timely and quality cryptocurrency data in the industry while benefiting from Binance’s expertise, resources and scale.

However, CMC will immediately undergo some internal restructuring as part of the deal. Brandon Chez, CMC’s founder, will be stepping down as CEO and will be replaced by CoinMarketCap’s current chief strategy officer, Carylyne Chan, as interim CEO. 

Apart from the reshuffle, CoinMarketCap will not see any changes in its team in the near future, or at least the next couple of months. Chan said:

Other than that, there won't be any other major team changes at CoinMarketCap. Everyone is going to stay on and everyone is really excited about what's happening. [...] I think that no other major changes that we see, definitely not in the next couple of months.

South Korea's Central Bank Launches Digital Currency Pilot Program

The 2nd week of April began with the news from The Bank of Korea that has announced on April 6 that it has launched a pilot program to assess the logistics of issuing a central bank digital currency — or CBDC.

While the South Korean central bank has no immediate plans to introduce such a currency, the pilot scheme will ensure that it is prepared to do so in the face of changing market conditions.

Following theoretical research conducted in February 2020, the pilot will comprise a technological and legal review of CBDC issuance. It began in March and is scheduled to run for 22 months, through to December 2021.

The initial phase is to define the requirements and design of the CBDC, to run for five months until July 2020. This will overlap a review of the technology required to implement the currency, which is scheduled from April until August.

Following this, there will be an analysis of business processes, lasting until the end of 2020. Finally, the whole of 2021 should see a 12-month build and test of the CBDC pilot system.

The announcement made clear that the bank does not see an immediate need to release a digital currency in South Korea, rather that, based on other nations' research in the field, it wishes to be prepared in case such a move becomes a necessity:

The need to issue a CBDC in the near future still remains slim when considering the demand for cash that still exists, the competitive payment service market and high-level financial inclusion, but there is a need to be able to quickly take steps in case market conditions at home and abroad change rapidly.

Dutch Brokerage Platform Launches Crypto Trading Across Europe

Further, in response to the growing demand for cryptocurrency trading, Dutch retail brokerage platform BUX launched its commission-free cryptocurrency trading platform BUX Crypto.

In a statement published April 8, the company announced that BUX Crypto is now available across 25 European countries.

BUX stated that its new offering aims to bring new traders into cryptocurrency markets by simplifying the crypto trading process. BUX CEO and founder Nick Bortot said:

We see BUX Crypto as a natural extension of our current lineup, which is focused on offering products that make it simple and affordable for even the newest investor to get into the financial markets.

At present, the platform supports the trade of six major cryptocurrencies, namely Bitcoin, Ether, XRP, Bitcoin Cash, Litecoin and the platform’s native token BUX. Per the release, the company plans to add more cryptocurrencies to its portal over time.

Although the platform says that it allows users to trade cryptocurrencies without charging a commission, there is a catch. Only the first 5,000 users to sign up on BUX Crytpo will actually be able to trade commission-free. Those following that will have to hold at least 2,500 BUX Tokens to be eligible for free trading.

Visa Backs New Bitcoin Rewards Card From Lightning-Friendly Fold

Finally the week was closed by The Fold app — a Lightning-compatible mobile app that offers users Bitcoin rewards while shopping — has joined Visa’s FinTech Fast Track Program.

Joining the program will enable the app to launch a new Visa co-branded card, which continues the offer of Bitcoin rewards for purchases made at retailers.

Fold’s CEO Will Reeves said that Visa would be providing the company with financial support and a dedicated team to bring the new Bitcoin cash-back rewards card to market. 

As reported, the Fold app has so far been offering users the ability to spend Bitcoin or fiat at major retailers such as Amazon, Uber and Starbucks, requiring them to synchronize their accounts either with an existing credit card or Lightning wallet. 

The new offering with Visa will enable the firm’s users to use an integrated service. At a time when multiple major industry players are exploring the possibilities of various crypto debit cards, Reeves distinguished Fold’s as follows:

Other cards announced by major exchanges [...] require you to spend your crypto triggering taxable events. Our card enables you to spend dollars and earn Bitcoin.

Reeves clarified that earning rewards denominated in Bitcoin does not trigger a taxable event “as the Bitcoin is not being sold.” The card will be functional at over 10 million merchants worldwide. 

Binance Officially Launches Bitcoin Options Trading on Mobile App

The third week of April started off with the news from top cryptocurrency exchange Binance which has officially launched Bitcoin options on its futures trading platform. Confirming hints earlier this month, the rollout was announced this morning, April 13. It is, for now, limited to the exchange’s mobile app.

Options contracts offer traders the chance to purchase either a right to buy (a call option) or sell (a put option) on a given asset at a specified “strike price.” Binance is offering the American, as opposed to the European, version of the derivative, in which traders can exercise their rights — i.e. settle the contract at the chosen strike price — at any time before or on the expiry date itself.

For Binance’s BTC/Tether (USDT) options contracts, traders first transfer their USDT holdings from their spot wallet to their futures wallet and choose an expiry date, ranging from 10 minutes to one day.

In a note to traders, Binance indicates that a fixed value premium must be paid at the start, meaning that any prospective profits on trades will be net, i.e. profits minus the premium. The exchange cautions that:

There is no guarantee that your options purchase will execute at a profit after the premium has been deducted. Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion.

Wirex Hits 3 Million Users & Becomes Profitable

Further, London-based crypto payment processor Wirex has revealed that it now has over 3 million active users, highlighting the popularity of its crypto-supporting visa card among customers.

Wirex is a company licensed by the U.K. Financial Conduct Authority (FCA) which allows crypto users to spend their crypto and fiat currencies using a dedicated Visa card and mobile app. The service has been rolled out in 130 countries, with the card accepted at over 46 million locations.

Wirex CEO Pavel Matveev said that more and more mainstream users “who are not typically hardcore cryptocurrency users” were being drawn to the card over traditional bank offerings thanks to features such as “Cryptoback,” which rewards Wirex users with up to 1.5% back in Bitcoin for each in-store transaction.

“If we compare usage before Cryptoback existed and afterwards, there is a 100% increase in the number of in-store transactions per customer after,” he said.

The increase in demand has translated into the company achieving profitability, as was publicly announced earlier this month. 

Crypto Finance AG Raises $14.5M

Moreover, Crypto Finance AG, the operator of several institution-oriented crypto businesses, has raised 14 million Swiss francs ($14.5 million) in a Series B funding round led by well-known investors from across Europe and Asia. 

The Zug-based business will use the funds to continue developing professional crypto asset infrastructure, management and trading services, founder and CEO Jan Brzezek said on April 16.

As reported, one of Crypto Finance AG’s three subsidiaries is the crypto investment fund, Crypto Fund AG, which received Switzerland’s first crypto asset management license from the Swiss Financial Market Supervisory Authority back in 2018.

Crypto Finance AG, a holding company of Crypto Finance Group, also operates two further subsidiaries; Crypto Broker AG and Crypto Storage AG, the latter of which provides storage solutions and tokenization infrastructure.

Crypto Gaming is Exploding During COVID-19

During the 4th week of April, US-based crypto gaming company Bling has reported a significant increase in the number of people using its products since most of the world entered various stages of lockdown in response to the COVID-19 pandemic.

According to statistics, Bling’s user statistics are up almost 50% over the month of March. The platform is reaching 70,000 users per day, and over 400,000 active users per month. Bling’s flagship app, Bitcoin Blast, has furthermore passed one million downloads from Google Play Store.

Bling CEO Amy Wan said that she chalks these statistics up to people being stuck at home “and bored.” Not only are there more users than before, but people are spending more time in their apps. Most of these users are located in the United States, the Philippines, Indonesia and Brazil.

Wan said that this trend has been taking place for mobile gaming in general. Most companies in this space are seeing more downloads and increased activity amid the quarantine requirements around the world.

Wan said:

We think that this may be an opportunity for many folks who previously heard of Bitcoin but never got around to learning much about it to take that time to learn and collect some Bitcoin. Whereas many crypto companies focus on selling Bitcoin, our unique proposition is that we give it away for free through gameplay.

She added that the current situation is both “a blessing and a curse.” Yes, Bling is seeing more users spend more time in its apps. But the company’s ad revenue has also gone down — since some advertisers are pulling their ad spend due to economic uncertainty.

Dutch Central Bank Is 'Ready to Play a Leading Role’ with Digital Euro

Further, The Dutch central bank wants to be the proving ground for central bank digital currencies (CBDCs) in the European Union.

In a 45-page report released by the bank on April 21, the De Nederlandsche Bank (DNB) said it was “ready to play a leading role” with research and development into its own digital currency as well as a Europe-wide digital currency. A digital Euro is expected to make cross-border payments faster and cheaper for all member states who participate. The Netherlands would be a suitable testing ground, the report said. 

Though not the primary target of the report, the DNB singled out cryptocurrency Libra as a possible threat to monetary stability and conceded it was “the reason why the DNB and other central banks are now considering issuing their own digital currency.”

According to the report, the move is partly in response to the decreasing use of paper money and coins in the Netherlands. Nearly two thirds of all payments in the nation are digital. In developing a digital currency, the DNB report questions “whether central banks should provide a new type of money that is better attuned to the needs of citizens and firms."

With the pandemic measures shutting down many businesses worldwide, the DNB report notes that those that remain open are avoiding physical cash:

Many stores now ask clients specifically not to pay in cash, which effectively means that only private money is accepted.

As the money we use becomes more risky — both physically due to the risk of passing on COVID-19 and financially due to an uncertain economic future — the race for CBDCs is accelerating. 

Sony Bets on Blockchain to Reshape the Future of Public Transport

Finally, while many nations remain at a near-standstill due to the COVID-19 pandemic, major players in tech are continuing to develop innovative infrastructure for when we get moving again.

Sony announced on April 23 that it has successfully developed a new blockchain system for integrating data and service provision across different forms of transportation — whether it be trains, buses, taxis, car-sharing or on-demand rental bicycles.

This approach to transport — referred to as MaaS (Mobility as a Service) — aims to provide people with data regarding optimal routes to their desired destinations.

The system aims to replace a siloed, type-specific interface for each segment of the sector, whereby users pay and choose their means of transport in isolation from the wider urban transportation system — for example, by using a specific taxi-hailing app or paying for a local bus.

Sony’s new Blockchain Common Database (BCBD) for MaaS can ostensibly process data from 7 million users per day and record, analyze and share their anonymized travel history and revenue allocation. It is the only successful project chosen from an initiative by the Netherlands Ministry of Infrastructure and Water Management last year, which appealed to developers to propose blockchain solutions for MaaS development.

Sony notes that BCDB is not limited to MaaS, and could be used in various applications for smart cities, where large-scale sensor data needs to be transparently and securely shared across a decentralized network.

British Payment Firm Checkout.com Joins the Libra Association

During the last week of April and nn a fresh move to revive Facebook-backed digital currency project Libra, the Libra Association has onboarded another member.

British payment startup Checkout.com has joined the Libra Association, becoming the 24th member engaged with the mission of building a better global payment network, Libra tweeted on April 28.

Guillaume Pousaz, Checkout.com founder and CEO, officially announced the news in a company statement on Tuesday. The executive outlined that Checkout.com joins Libra’s efforts to not only promote technological advancement but contribute to the formation of necessary regulatory framework to drive mass adoption of better payment solutions.

Pousaz argued that without such regulation framework, the technological breakthrough is not possible:

Regulation should form an integral part of any resulting framework, given its unique ability to protect the ecosystem from systemic abuses. Absent of such regulation, it is our fundamental belief that the technological advancements alone would fail to provide the secure and stable payments infrastructure required to drive mass adoption, impeding its progress.

The Checkout.com CEO continued to say that the firm has joined the Libra Association because the digital currency project can open finance to billions of unbanked people. Pousaz added that Libra’s principles come in line with Checkout.com’s mission to change the way that businesses interact with financial services for the better.

Chinese Internet Giant Tencent Launches Blockchain Accelerator

Further, Tencent, the operator of Chinese social media app WeChat, is launching a blockchain accelerator. 

Announced on the company’s website on April 29, the “Tencent Industrial Accelerator” is open to both early-stage and mature blockchain startups, with a total of 30 places available. To qualify, projects must have at least one financing round behind them. Applications are being accepted until June 6.

Tencent’s blockchain accelerator will focus on a variety of recruitment areas including industrial blockchain solutions and blockchain applications for data sharing, supply chain financing and digital asset transactions. 

Other recruitment areas will focus on blockchain for sectors such as government affairs, energy, education, logistics, manufacturing, agriculture and public welfare.  

Successful applicants will be given four mentoring meetings throughout the year, a host of industry networking and business opportunities, and access to Tencent’s blockchain-as-a-service platform. They will also have a chance to make an overseas visit connected to their blockchain industry area of interest.

Development areas of interest isolated in Tencent’s announcement include smart contract security, trusted identity and computing solutions, multi-party governance mechanisms and consensus algorithms. 

Shortlisted projects will be announced for a second round of judging at the end of June. The cost per person for participation in the accelerator will be 100,000 RMB — just over $14,000.

Andreessen Horowitz Raises $515M for New Crypto Fund, Surpassing Initial Goal

Finally, the month was closed by top venture capital firm Andreessen Horowitz that is expanding its presence in the crypto sector. The United States-based company has raised $515 million for its second crypto-focused fund, according to an April 14 article on Fortune. 

Earlier reports suggested that Andreessen Horowitz, also called a16z, was hoping to accumulate $450 million in capital for the new vehicle, meaning that the firm has surpassed the initial goal by $65 million.

Similarly to Andreessen Horowitz’s first crypto-oriented fund, which raised $300 million in 2018, the new endeavor will reportedly focus on blockchain projects, although the Fortune report does not mention startups working with digital assets.

Chris Dixon, general partner at the venture capital juggernaut, said of blockchain: 

It's very rare that major, new computing paradigms come along, and we think this is on the scale of cloud and mobile for the Internet.

Dixon added that he expects to see many new blockchains being launched in 2020. That includes Dfinity, a blockchain-based cloud computing project that a16z has already backed via its first crypto fund. 

Being one of the first venture capital firms to enter the space, Andreessen Horowitz has invested in a variety of crypto projects so far, including Libra, Maker DAO, and Coinbase, among others. 

The company’s involvement with the crypto industry isn’t limited to investments. In December 2019, a16z announced a free, seven-week crypto startup school, scheduled to launch in February 2020, although there has been no update on that since. 

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading company's expansion into Europe , I'm an active member of FinTech community and a TechFin evangelist.

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