Nigeria's New Stance on Crypto Bodes Well for Africa
After a challenging first half of the year for the African crypto and blockchain industry, experts believe that the expected approval of bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) and Nigeria's lifting of restrictions on the crypto industry will revitalize African users' interest in cryptocurrency. Additionally, the upcoming Bitcoin halving event in April 2024 is anticipated to have a significant impact on the trajectory of the top crypto asset.
The removal of former Central Bank of Nigeria (CBN) governor Godwin Emefiele in June has led to a more conciliatory approach under the leadership of Olayemi Cardoso. The CBN has gradually moved away from the restrictive policies implemented during Emefiele's tenure, including the devaluation of the local currency and the use of foreign currency. However, the most notable decision made by the CBN under Cardoso's stewardship is the recent lifting of the February 2021 crypto asset-related restrictions. This move has generated renewed optimism not only in Nigeria but across the entire African continent.
Ophi Rume, the executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), considers the removal of the ban on cryptocurrency transactions as a significant moment for Africa. Rume believes that this decision will attract innovators from other African countries, who previously saw Nigeria as a closed market due to the restrictions. Nigeria's role as a leader in emerging technologies like cryptocurrency and blockchain makes this development a win for Africa.
Southern African Countries Seize the Initiative in 2023
In Kenya, the freezing of Worldcoin's activities due to national security concerns was seen as a low point for the crypto industry in East Africa. However, there are indications that Worldcoin will be allowed to resume its activities in early 2024. Additionally, the Kenyan parliament has taken steps to enable the taxation of the country's reported 4.5 million crypto holders.
In South Africa, one of the largest crypto markets in Africa, authorities are establishing a regulatory framework for virtual asset service providers (VASPs). Over 90 entities have already submitted their applications for licenses to operate as VASPs. Angola's passage of crypto laws towards the end of the year is seen as another milestone in revitalizing optimism among users and prospective service providers. Zimbabwe's central bank also made history by launching Africa's first and only gold-backed digital currency in May.
Bitcoin Halving and the ETF Mania
While these developments are significant for the African crypto industry, the expected approval of spot Bitcoin ETFs by the SEC is seen as the key moment that will trigger another bull run and attract capital inflows. Shaheer Karrim, the co-founder of Mzansi Web3 ICP Hub, believes that although the approval of ETFs may be seen as an achievement, its benefits are likely to be short-lived. Karrim anticipates that institutions like Blackrock will seek to control the narrative or manipulate the top crypto asset.
Regarding the impact of spot Bitcoin ETFs on Africa, Karrim believes that African countries will follow the lead of Western countries, leading to increased interest in cryptocurrency and its underlying technology.
In addition to the ETFs, the upcoming Bitcoin halving event in April 2024 is expected to play a pivotal role in shaping the trajectory of the top crypto asset. Ivaibi Festo, the founder of Mitroplus Labs, believes that the upcoming bull run will be bigger and better than any previous ones, impacting global incomes and value distributions. Festo emphasizes the importance of being aware of the changes occurring in the international monetary system during this time.
Nathaniel Luz, the founder of Flincap, agrees that the approval of Bitcoin ETFs will bring legitimacy to the crypto industry and restore users' trust. Luz highlights the impact of events like the collapse of FTX and Luna, which negatively affected confidence in the industry throughout the year.
While ordinary African crypto users may not be interested in the technicalities of the SEC's approval of spot Bitcoin ETFs, Luz argues that they are interested in the positive market environment created by the approval. Additionally, regulations in first-world countries, particularly the US, often influence regulations in other countries, making the approval of ETFs relevant to African crypto users.
In conclusion, the expected approval of Bitcoin ETFs by the SEC and Nigeria's new stance on crypto are expected to drive the revival of the crypto industry in Africa. These developments, combined with the upcoming Bitcoin halving event, are likely to attract more users and capital to the African crypto and blockchain industry.
Frequently Asked Questions
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's not subject to tax until you withdraw it. You can decide how much money you withdraw each year. There are many types and types of IRAs. Some are more suitable for students who wish to save money for college. Others are intended for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. The earnings earned after they withdraw the funds aren't subject to any tax. This type of account might be a good choice if your goal is to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. That means you won't have to think about making deposits every month. To ensure that you never miss a payment, you could set up direct debits.
Finally, gold is one the most secure investment options available. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
Is gold a good choice for an investment IRA?
For anyone who wants to save some money, gold can be a good investment. You can diversify your portfolio with gold. There is much more to gold than meets your eye.
It's been used as a form of payment throughout history. It is often called “the most ancient currency in the universe.”
But unlike paper currencies, which governments create, gold is mined out of the earth. It is very valuable, as it is rare and hard to create.
The supply and demand factors determine how much gold is worth. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. As a result, the value of gold goes up.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This causes more gold to be produced, which lowers its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you have gold to invest, you will reap the rewards when the economy expands.
Also, your investments will earn you interest which can help increase your wealth. In addition, you won’t lose any money if gold falls in value.
What precious metals do you have that you can invest in for your retirement?
These precious metals are among the most attractive investments. They are both easy to trade and have been around for years. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is very stable and secure. It's a great way to protect wealth in times of uncertainty.
Silver: The popularity of silver has always been a concern for investors. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more accessible. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
How do you withdraw from an IRA that holds precious metals?
First decide if your IRA account allows you to withdraw funds. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. However, a debit card is better than a card. This will save you unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Because you don't have to store individual coins, bullion bars take up less space than other items. But you will have to count each coin separately. On the flip side, storing individual coins allows you to easily track their value.
Some prefer to store their coins in a vault. Some people prefer to store their coins safely in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
investopedia.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
How To
The best place to buy silver or gold online
To buy gold, you must first understand how it works. Precious metals like gold are similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types currently available: legal tender and bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They cannot be used in currency exchanges. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. For every dollar spent, the buyer gets 1 gram of Gold.
When you are looking to purchase gold, the next thing to know is where to get it. If you want to purchase gold directly from a dealer, then a few options are available. First, go to your local coin shop. Another option is to go through a reputable site like eBay. You can also purchase gold through private online sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great choice for investing gold as it allows you more control over its price.
You can also invest in gold physical. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
You can either visit a bank, pawnshop or bank to buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. These are small businesses that let customers borrow money against the items they bring to them. Banks typically charge higher interest rates than pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold can also be done easily. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Terence Zimwara
Title: Bitcoin ETF Mania and Nigeria’s New Stance on Crypto to Drive the Industry’s Revival in Africa — Experts
Sourced From: news.bitcoin.com/bitcoin-etf-mania-and-nigerias-new-stance-on-crypto-to-drive-the-industrys-revival-in-africa-experts/
Published Date: Sat, 30 Dec 2023 12:30:51 +0000
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