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Awareness and Observation are Antennas into the Minds of Customers, And Great Skills of Great Achievers

By
Ndubuisi Ekekwe
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0

Awareness and observation are antennas into the minds of customers. And the greatest entrepreneurs are those who demonstrate uncommon abilities to understand evolving patterns and customer preferences, before those become evident . Yes,  they build for that unborn future, and become category-pioneers and -kings. They’re aware!

What do you think will be the stable state of Naira and dollar in Nigeria? Today, it is hovering around N850/$ which seems very out of order. Many experts modeled N650/$. What are you observing? Are you paying attention because these shifts would be catalytic in the grand scheme of things.

A case here: Nigeria brings in via oil sales, remittances, non-oil sales, etc about $100 billion yearly. Officially, Nigeria’s annual import is less than $60 billion. In the real sense we should be fine (let me spare you of them). But we are not due to many factors.

Meanwhile, the half-year roll call of the most valuable publicly traded companies in Nigeria is out, according to Nairametrics. Dangote Cement  leads at $7.9 billion followed by MTN Nigeria ($7.05 billion). Others at the top are Airtel Africa, BUA Cement, BUA Foods, GTCo, Zenith Bank, Seplat Energies, Nestle Nigeria, and Stanbic IBTC. GTbank’s GTCO is back, overtaking Zenith Bank, as the nation’s most valued lender. That noted, Stanbic IBTC is just around the corner and could pick the trophy in 2024.

  • Dangote Cement – N5.99 trillion ($7.9 billion)
  • MTN Nigeria – N5.33 trillion ($7.05 billion)
  • Airtel Africa – N4.96 trillion ($6.55 billion)
  • BUA Cement – N3.35 trillion ($4.43 billion)
  • BUA Foods – N2.44 trillion ($3.23 billion)
  • GTCo – N1.08 trillion
  • Zenith Bank – N1.06 trillion
  • Seplat – N996.6 billion
  • Nestle Nigeria – N931.4 billion
  • Stanbic IBTC – N900.5 billion

Tether CTO Announces Completion of JavaScript Library Work for Mining Hardware

By
Paul Ugbede Godwin
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1

Tether, the company behind the popular stablecoin USDT, has announced that its chief technology officer (CTO), Paolo Ardoino, has completed the work on a JavaScript library that will enable developers to integrate Tether mining hardware into their web applications. The library, called TetherJS, is a wrapper for the Tether API that allows web developers to access the functionality of Tether mining devices, such as the Tether Miner and the Tether Node. The library also provides methods for creating and managing Tether wallets, sending and receiving USDT transactions, and querying the Tether blockchain.

Tether is a cryptocurrency that aims to provide a stable and transparent alternative to traditional fiat currencies. Tether tokens are backed by a reserve of assets, such as US dollars, euros, or gold, and can be exchanged for these assets at any time. Tether tokens are also compatible with multiple blockchains, such as Bitcoin, Ethereum, and Tron, making them easy to use across different platforms and applications. In this blog post, we will explore the history, features, and benefits of Tether, as well as some of the challenges and controversies that it faces.

Tether was launched in 2014 by a company called Tether Limited, which is owned by iFinex Inc., the same company that operates the Bitfinex cryptocurrency exchange. The original idea behind Tether was to create a token that could bridge the gap between the traditional and digital worlds, allowing users to transact with fiat currencies on the blockchain without the volatility and complexity of other cryptocurrencies.

Tether was initially issued on the Bitcoin blockchain using the Omni Layer Protocol, but later expanded to other blockchains such as Ethereum, EOS, and Tron. Tether tokens are denoted by the symbol ? and have different currency codes depending on the underlying asset, such as USD? for US dollars, EUR? for euros, and XAU? for gold.

One of the main advantages of Tether is that it offers stability and transparency in the cryptocurrency market. Tether tokens are pegged to their respective assets at a 1-to-1 ratio, meaning that one USD is always worth one US dollar, one EUR is always worth one euro, and so on. This reduces the risk of price fluctuations and enables users to hedge against volatility in other cryptocurrencies.

Tether also claims to maintain a full reserve of assets to back up its tokens and publishes a daily record of its current total assets and reserves on its website. Additionally, Tether tokens are widely adopted and traded across major exchanges, wallets, and applications, making them highly liquid and accessible.

However, Tether also faces some challenges and controversies that cast doubt on its credibility and legitimacy. One of the most prominent issues is the lack of independent audits that verify Tether’s reserves and compliance with regulatory standards. Tether has been accused of inflating its supply of tokens without sufficient backing, manipulating the price of Bitcoin and other cryptocurrencies, and engaging in fraudulent activities with Bitfinex and other entities.

In 2019, Tether was sued by the New York Attorney General for allegedly covering up an $850 million loss of customer funds by Bitfinex. In 2020, Tether was fined by the Commodity Futures Trading Commission for making false claims about its reserves. These incidents have raised questions about Tether’s trustworthiness and solvency.

Ardoino said that the TetherJS library was developed to make it easier for web developers to leverage the power of Tether mining hardware and create innovative applications that use USDT as a payment method or a reward system. He also said that the library was designed to be compatible with various web frameworks, such as React, Angular, and Vue.

“We are very excited to announce the completion of TetherJS, which is a major milestone for our company and our community. TetherJS will enable web developers to tap into the potential of Tether mining hardware and create amazing web applications that use USDT as a native currency. We believe that this will open up new possibilities for innovation and adoption of USDT in the web space,” Ardoino said in a press release.

TetherJS is available on GitHub and npm, and it comes with documentation and examples. Ardoino said that he welcomes feedback and contributions from the developer community, and that he plans to add more features and improvements to the library in the future. According to CoinMarketCap, USDT is the third-largest cryptocurrency by market capitalization, with over $62 billion in circulation as of August 6, 2023.

USDT differs from other cryptocurrencies in several ways. First, USDT is backed by reserves of US dollars held by Tether in bank accounts or other assets. This means that USDT holders can redeem their tokens for US dollars at any time. Second, USDT is designed to maintain a stable value relative to the US dollar, unlike other cryptocurrencies that are subject to volatility and price fluctuations. Third, USDT is compatible with multiple blockchain platforms, such as Bitcoin, Ethereum, Tron, and EOS. This makes USDT more accessible and interoperable than other cryptocurrencies that are limited to one blockchain.

Details of the Revised CBN Regulations For The Direct Debit Scheme in Nigeria

By
Emmanuel Ifeanyi Ogbuka
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0

Finance Law :- Details of The Revised CBN Regulation For The Direct Debit Scheme in Nigeria

The Central Bank of Nigeria (CBN), pursuant to its guaranteed powers under the Central Bank of Nigeria Act 2007, released its revised direct debit regulations based on its recognition of existing and emerging multichannel options (online platforms, instant payments,etc) applied for direct debit instructions in Nigeria as well as for the purpose of harmonizing direct debit regulations with evolving developments in the Nigerian payments system.

This article will be looking at direct debit instructions as a concept and the relevant provisions of the revised CBN Regulations.

What is a direct debit instruction?

A direct debit instruction or mandate is a cashless form of financial settlement which facilitates recurring payments. It permits the originator of the instruction , known as “the biller” to collect amounts due from a prayer through the player’s bank by leveraging on an instruction or mandate provided by the payer. 

An entity wishing to participate as a biller in the Direct Debit Scheme will typically contact its bank or payment service provider. The service may be deployed on channels provided by the biller through its bank or payment service provider.

Who are the recognized participants in the direct debit scheme under the CBN regulations?

The recognized participants in the direct debit scheme are :-

– The biller

– The biller’s bank

– The payer

– The payer’s bank

– The payment service provider

What are the roles of these participants?

The Biller

– A biller shall be an entity incorporated or registered by an appropriate authority to carry on business and shall be onboarded to the direct debit scheme by a bank or payment service provider after satisfactory due diligence.

– A biller shall obtain the mandate of the payer through a platform provided by the biller or its appointed agent/partner either in paper or electronic form, duly verified by the payer’s bank.

– A biller shall provide clear terms and conditions, which shall be applicable to a direct debit payment arrangement between it and the payer.

– A biller shall comply with the terms of the mandate executed by the payer for the initiation of a direct debit transfer.

– A biller may withdraw from the scheme voluntarily or be required to withdraw from the scheme.

The Biller’s Bank

– The biller’s bank shall be a member of the clearing system or integrated with a payment service provider that accepts direct debit for processing.

– The biller’s bank shall hold an account for the biller to receive proceeds of direct debit.

– It is the responsibility of the biller’s bank to give information, advice and guidance on all aspects of the scheme to the biller where applicable.

– The biller’s bank shall obtain an executed direct debit indemnity from the biller before commencement of any debit transfer under this scheme.

– The biller’s bank shall accept cancellation of a direct debit mandate only from the biller.

The Payer

– The payer shall execute a direct debit mandate in order to participate in the direct debit scheme.

– A payer may cancel a direct debit mandate at any time upon such notice to the biller as specified in the direct debit mandate provided that such cancellation shall not be effective until the end of the current billing cycle.

– A payer may raise a claim through the payer’s bank against the biller in the event of a successful debit after mandate cancellation.

– The payer shall give a cancellation notice of not less than 10 Business days terminating at the end of the current billing cycle.

The Payer’s Bank

– The payer’s bank shall be a member of the clearing system or integrated with a payment service provider that accept direct debit for processing.

– The payer’s bank shall obtain the authority of the payer either in paper form or electronic form before activating a direct debit mandate on the payer’s account.

– The payer’s bank shall not subject an activated direct debit mandate to further payer’s confirmation at the point of payment.

– The payer’s bank shall render report of all direct debit mandates unpaid due to insufficient funds on a monthly basis to a licensed credit bureau and the credit risk management system or as may be required by the CBN.

The Payment System Service Provider

– A payment system provider shall execute direct debit in line with the direct debit mandate.

– A payment system service provider shall give information, advice and guidance on all aspects of the scheme to billers on its platform.

– A payment system service provider shall accept cancellation of direct debit mandates only from the billers on its platform.

What are the control mechanisms for participating in the scheme & consumer protection provisions?

The payer shall be notified of the following activities by SMS and/or email :-

a). Set-up and approval of the direct debit mandate by the biller, payment service provider or both.

b). Direct debits into the payer’s account by the payer’s bank.

c). Amendments/modifications made to the direct debit mandate by the biller or payment service provider as applicable.

d). Cancellation of a direct debit mandate by the biller or the payment service provider as applicable.

 

e). Payer’s banks, billers and PSPs shall keep records of all direct debit transactions for a period of not less than 6 years from the date of cessation of the direct debit mandate.

f). Payer’s bank shall go through its normal confirmation process upon receipt of a direct debit mandate to verify its authenticity.

g). The payer’s bank and the biller’s banks shall comply with the Nigerian Bankers’ Clearing System rules as applicable to the scheme.

What are the business and operational rules following direct debit mandates under the CBN regulations?

– Direct Debit transactions can either be fixed direct debits or variable direct debits up to the maximum amount stated in the mandate.

– Every direct debit mandate shall clearly state whether it is a fixed or variable mandate.

– There shall be a platform provided by the biller for the initiation of a direct debit mandate.

– Each biller shall put in place a process for returning wrongful mandates to the payer.

– Any change in the terms of a direct debit mandate shall require a cancellation of the existing mandate and issuance of a new one.

What are the provisions of the CBN Regulations regarding unpaid direct debits?

The payer’s bank shall return any unpaid direct debit instruction within the clearing cycle. The biller’s bank/payment service provider may represent an unpaid direct debit instruction within 24 Hours or as agreed with the payer for the same amount that was originally dishonored. 

What is the minimum advance notice requirement under the CBN regulations?

A biller shall give an advance notice of 10 Business days minimum or as agreed with the payer on a mandate before :-

– The first payment

– Changes to the amount and due date

In all cases, an advance notice shall allow sufficient time for a payer to raise a query, countermand a single payment or cancel the transfer.

Are direct debit mandates binding on the payer’s bank?

No. A direct debit mandate shall not constitute an agreement between the biller and the payer’s bank.

What are the provisions of the CBN Regulations regarding claims under the direct debit indemnities?

– Any claim under a direct debit indemnity should be brought within a period of 1 year from the date of the debit.

– A biller shall honour an indemnity claim within 5 business days from the date of receipt of the claim.

What are the applicable penalties for infractions of provisions contained in the CBN regulation?

Penalties for infractions shall be based on sanctions prescribed in the Nigerian Bankers Clearing System rules.

What is the prescribed dispute resolution mechanism for direct debit disputes?

All disputes emanating from Direct Debit transactions are to be referred to the CBN Dispute Resolution mechanism.

What ECOWAS Can Do from Tomorrow, After Today’s Deadline with Niger’s Junta

By
Ndubuisi Ekekwe
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1
Empty white clear flag waving against clean blue sky, close up, isolated with clipping path mask alpha channel transparency

The ECOWAS deadline for the Niger Republic junta, to restore the deposed democratic leader, as president, is today.  I am not sure the khakis guys will respond positively to the memo. That said, with the Nigerian Senate’s bold leadership for disapproving any military action in Niger, the question now is “What should ECOWAS do next?” Here is my suggestion (I made the same suggestion last week) during the effervescence of military threats.

Call a meeting of the African Development Bank, African Export-Import Bank, economic ministers of ECOWAS countries and partners of ECOWAS, and work out a regional sovereign guarantee (RSG) package of $5 billion for Niger Republic. That is about the national budget of the country.

Then open an Africa-wide investment opportunity window for Niger, guaranteeing 50% of every investment into Niger Republic in the next three years. Areas to be covered include education, agriculture, healthcare, and related areas. At least 25% of the RSG should go to Niger-native companies.

Ask the United Nations, African Union, and ECOWAS leaders to present this carrot to the junta. Make it clear that a 6-month (at most) timeline back to democracy activates it, even as all sanctions are lifted. With this playbook, the junta cannot argue otherwise since this will meet their alleged motive for a coup (deteriorating economic state of the nation). They will accept the deal because with this package, you will win the labour union, corporate Niger and most of the youth; flipping allegiance is strategic here.

As ECOWAS’s seven days ultimatum for the reinstatement of deposed President Mohamed Bazoum in Niger expires today (Sunday), there is uncertainty about the next line of action for the bloc.

Last Sunday, ECOWAS had an emergency meeting where it gave putschists led by General Abdourahamane Tchiani until today to reinstate Mr Bazoum or risk military intervention. Severe economic sanctions were also imposed on Niger in a bid to get the putschists to comply with its demands.

Despite the sanctions and other measures taken to reverse the situation in Niger, putschists have remained defiant with Mr Tchiani saying in a televised broadcast that he will not bow down to pressure to reinstate Mr Bazoum. He also criticised sanctions imposed by West African leaders as illegal and inhumane.

He urged Nigeriens to get ready to defend their nation while warning against any interference in Niger’s

internal affairs.

Comment 1: …and a domino effect incentive for further democracies to crumble!

My Response: That will not be a bad thing though since this is sovereign guarantee, not grants. So, if that activates investments in other countries, that should be a net positive. Today, I am ready to guarantee 50% on a $40,000 investment on maternal care (maternity) in my village, Ovim. If that person invests and it fails, I will refund that person 50%. That is what we’re talking about here.

Comment 2: This sounds like a good plan prof, and it sounds attractive enough to turn things around. But what if the taste of power is now sweeter than the proferred solutions? What next?

My Response: The goal is to turn the people against the junta. This carrot will shift allegiance and the junta may not have air. Why block a national budget-size new investments? The people will make a case that the nation is bigger than the junta.

Digital Currency Group Faces NY Attorney General Probe

By
Paul Ugbede Godwin
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0

Digital Currency Group (DCG), one of the most influential investors in the crypto space, is facing a probe by the New York Attorney General (NYAG) over its ties to Genesis, a crypto trading and lending platform. The NYAG has issued a subpoena to DCG, seeking information about its relationship with Genesis, which is also a subsidiary of DCG. The probe is part of a broader investigation into the crypto lending industry, which has raised concerns about consumer protection, market manipulation, and systemic risk.

DCG is a venture capital firm that invests in over 200 crypto-related companies, including Coinbase, Grayscale, BitGo, and Blockstream. It also operates its own subsidiaries, such as Foundry, a mining and staking service provider, and Genesis, a platform that offers institutional clients access to crypto trading, lending, custody, and prime brokerage services.

Genesis was founded in 2013 as a Bitcoin broker-dealer and later expanded into other crypto assets and services. It claims to be the largest institutional crypto lender in the world, with over $40 billion in originations since 2018. It also offers over-the-counter (OTC) trading, derivatives, and yield products. In 2020, Genesis acquired Vo1t, a digital asset custody provider, and launched Genesis Prime, a one-stop shop for institutional investors to access multiple crypto services.

The NYAG has been investigating the crypto lending industry since 2018, when it launched the Virtual Markets Integrity Initiative, a fact-finding inquiry into the policies and practices of crypto exchanges. The initiative revealed that many platforms lacked adequate safeguards to protect investors from fraud, manipulation, and abuse.

In 2019, the NYAG sued Bitfinex and Tether, two entities affiliated with DCG, for allegedly covering up an $850 million loss of customer funds and using Tether’s reserves to bail out Bitfinex. The case was settled in 2021, with Bitfinex and Tether agreeing to pay $18.5 million in penalties and submit periodic reports to the NYAG.

In 2020, the NYAG issued a cease-and-desist order to Coinseed, a crypto trading app backed by DCG, for operating as an unregistered broker-dealer and defrauding investors. Coinseed allegedly converted users’ funds into Dogecoin without their consent and ignored their withdrawal requests.

In 2021, the NYAG subpoenaed DCG as part of its ongoing investigation into the crypto lending industry. The NYAG is reportedly concerned about the potential conflicts of interest between DCG and Genesis, as well as the lack of transparency and regulation in the crypto lending market. The NYAG wants to know how DCG oversees Genesis’s operations, how Genesis manages its liquidity and risk exposure, how Genesis determines its interest rates and fees, and how Genesis handles customer complaints and disputes.

The probe could have significant implications for DCG and Genesis, as well as for the wider crypto industry. Depending on the outcome of the investigation, the NYAG could impose fines, sanctions, or injunctions on DCG and Genesis, or even revoke their licenses to operate in New York. The probe could also trigger similar actions by other regulators or law enforcement agencies in other jurisdictions.

The probe could also affect the reputation and credibility of DCG and Genesis as leading players in the crypto space. It could erode the trust and confidence of their existing and potential clients, partners, and investors. It could also hamper their growth and innovation plans, as they may have to divert resources and attention to deal with the legal challenges.

The probe could also have broader implications for the crypto lending industry as a whole. It could expose some of the risks and pitfalls of this emerging sector, such as liquidity crunches, defaults, hacks, scams, or market crashes. It could also prompt more regulatory scrutiny and intervention in this space, which could affect the availability and accessibility of crypto lending services for both retail and institutional users.

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