Facebook Libra Will Redesign Africa’s Commerce With Unified Payment

By

-

June 18, 2019

This was an old challenge I posited in the fintech and banking domain:

In this videocast, I discuss the need to build a truly pan-African digital remittance/transfer banking product which is agnostic of location or currency in Africa. None of the products we have today meets that standard. Largely, I envisage a situation where all you need to buy and sell across Africa is one bank account in just one African Union country. With that, you do not have to even think about the specific currency of that account as technology will seamlessly make it possible to access other African markets for payments, transfer etc. The banks or fintech companies must still comply with all regulations related to inter-national transfers, forex etc. The only difference is that customers will not see them as they will be hidden with technology.

This week, I can write that Facebook Libra is getting close to making that a reality: “The mission for Libra is a simple global currency and financial infrastructure that empowers billions of people…Libra is designed to be a stable digital cryptocurrency that will be fully backed by a reserve of real assets — the Libra Reserve — and supported by a competitive network of exchanges buying and selling Libra”. That is fortunate and unfortunate at the same time: Facebook owns African payment while also helping to solve a major friction on intra-African trade and commerce. This is Facebook Libra, a blockchain-based cryptocurrency that will unify global payments. Through Libra, Facebook will have another company with at least a billion users and also create a new basis of competition for all fintech companies especially those in the developing world like Nigeria. Most remittance companies will struggle and disruption will be unbounded. Libra is the operating system of the new web! It is huge.

Facebook has finally revealed the details of its cryptocurrency, Libra, which will let you buy things or send money to people with nearly zero fees. You’ll pseudonymously buy or cash out your Libra online or at local exchange points like grocery stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet that will be built into WhatsApp, Messenger and its own app. Today Facebook released its white paper explaining Libra and its testnet for working out the kinks of its blockchain system before a public launch in the first half of 2020.

Facebook won’t fully control Libra, but instead get just a single vote in its governance like other founding members of the Libra Association, including Visa, Uber and Andreessen Horowitz, which have invested at least $10 million each into the project’s operations. The association will promote the open-sourced Libra Blockchain and developer platform with its own Move programming language, plus sign up businesses to accept Libra for payment and even give customers discounts or rewards.

Facebook is launching a subsidiary company also called Calibra that handles its crypto dealings and protects users’ privacy by never mingling your Libra payments with your Facebook data so it can’t be used for ad targeting. Your real identity won’t be tied to your publicly visible transactions. But Facebook/Calibra and other founding members of the Libra Association will earn interest on the money users cash in that is held in reserve to keep the value of Libra stable.

And from the Whitepaper – “This is the goal for Libra: A stable currency built on a secure and stable open-source blockchain, backed by a reserve of real assets, and governed by an independent association. Our hope is to create more access to better, cheaper, and open financial services — no matter who you are, where you live, what you do, or how much you have.”.

The Facebook’s GlobalCoin

Comment on LinkedIn Feed

Comment #1

One of those problems with having single entity with so much power, it doesn’t really matter the euphemistic posturing out there, without Facebook’s access to unlimited data, this won’t be possible.

From the consumers viewpoints, everything looks great, but for entrepreneurs and economies of some countries, it could be chaos. Buying and selling occur when there are productive citizens, not a mere social media interactions.

Facebook formed an association, with American companies, while Africans are waiting to consume. The only thing I can consider an association is where at least a company from each country where Facebook is operational is a member of the association, so that in the sharing of the bounties, you are not completely cut off!

Just over four decades ago, about five corporations virtually ran the world, and we are essentially converging to the same scenario again. This world is rigged, and it’s becoming scary, because some countries don’t stand any chance of playing mainstream.

The same technologies we are celebrating today could be our greatest undoing, if we don’t apply brakes in some key places.

Sometimes those things we call frictions are necessary, because they help keep a lot more people busy!

Comment #2

If Facebook’s libra is allowed to go on, it will adversely affect the economies of emerging countries like Nigeria. Unlike other cryptos where no real value is attached, Libra is backed by USD asset. Here is how- For every libra purchased with USD, the dollar is transferred to the Libra councils account. This is invested in government short term securities, in other words, a vast amount of wealth will be informally transferred into the USA economy and will remain there until the owner decides to cash out to fiat cash. This isn’t good for emerging countries.

A User Comment under #2

Please note for clarification purpose, hashtagcryptocurrency is based on the following categories 1. payment/remitter 2. Exchange/ Asset 3. Utility Every hashtagcryptocurrency has where it is back with when value has been created depending on supply and demands. For specific used case, u can DM to gain more hashtagknowledge of how it works as a subject matter expert in that domain. Please note that emerging countries like Nigeria will not be adversely affected as the hashtagCBN can be a node which validates transaction and receives a Network fee for that. This will optimize transparency in our financial system.

Comment #3

The way i see it, facebook Libra coin is not competing with other coins such as Bitcoin or Ethereum But it’s competition will be from the traditional Banking system backed by the Government.

The coin will definitely face stiff battle and regulatory challenges which i believe will definitely happen. The Government backed Banks will not fold their hands and allow a currency pegged to the fiat currency and shielded from volatility unlike other coins to take over their transactions.

Facebook privacy issues are a concern and how much power will he wield with such great data on his hand on people’s spending habit, knowing what they buy, who they are buying from and all the details. It’s quite scary to think about.

Unlike other coins, Libra is not decentralized so Mark Zuckerberg snooping continues.. The regulatory war has just been declared.

Nigeria Customs Services’ Seme-Border Command Generates N2.7bn in 3 Months

By

Oko Ebuka

-

June 18, 2019

2

By Oko Ebuka

The Nigeria Customs Services (NCS), Seme-Border Command has remitted over N2.7 billion into the coffers of the federal government within a period of three months.

In a statement by the Customs Area Controller, CAC, Seme-Border, Garba Uba Mohammed, he said that the Command impounded 8,304 bags of 50 kilogram foreign per boiled rice which is equivalent of 14 trailers with Duty Paid Value, (DPV) of N88.7 million.

In furtherance to this, the Customs boss said that 1,582 parcel of Cannabis Sativa concealed in an Indomie pained truck and another 55 parcel concealed under a corpse; both valued at I’ve N30 million, were equally impounded.

He also disclosed that the Command seized 13 vehicles including Toyota Highlander (2005), Range Rover (2017), Toyota Rav 4 (2006), Toyota Venza (2010) and others with combined DPV of N42.1 million.

Other items includes a truck load of 493 pecks of baby diapers valued at N4.1 million; 2,000 cartons of expired biscuit valued at N7.7 million and 410 sacks of school bags valued at N13.2 million, he noted.

Also listed amongst items seized according to Mohammed includes 31 jerry cans of 25 litres each with DPV of N269, 911, 138 jerry cans of 25 litres each valued at N212,100: 71 cartons of expired food seasoning worth N458,109; 35 bags of 50 kilograms sugar and many more.

Along with the seized, six persons are in custody. According to him, “Let me re-emphasis that the Command is determined to detect, arrest and prosecute those who fail to comply with the extent regulations.

“He called on Nigerians should be patriotic by supporting the Command by reporting any smuggling activity or relevant information that will assist the Command in discharging its obligations.

He said the Command is working at leveraging on modern communications tools to improve cross border efficient along the corridor in facilitating border crossing for the promotion of regional integration towards simplification, standardization, and harmonization.

The Foreign Figure Factor Poses Threat to Nigeria’s Economy

By

Oko Ebuka

-

June 18, 2019

0

By Oko Ebuka

Nigeria is currently experiencing an economic dwindle which practically affects the nation’s seaports especially on the issues of exportation and handling of cargo businesses in ports like Apapa and Tin-Can Island respectively.

From my investigative research, there are strong indications that the country is clearly losing out on the economic activities going on the ports as over 99% of Lebanese and Indians are currently in charge of all the strategic dealings concerning export and importation.

Sequel to this, the degeneration of human capital development is on the high side as fewer Nigerians now have access to operate in the port which is rightly situated in one of the country’s economic hub.

Unemployment rate can be reduced drastically if the government can conscientiously introduce the “Indigenization Act”, as proposed earlier by Dr. Farinto Kayode (a Maritime guru), and legally back it up to give the citizens a well-deserved national respect economically.

Furthermore, there should also be a critical review on the issuance of import and export licenses to these foreign bodies which ought to give edge to Nigerians for them to emphatically have access to the ports without restrictions.

Maritime sector is one of the major key players in the economic growth which should be properly harnessed in a way to raise the economic base and alleviate poverty in the country especially by carrying citizens along.

What Employers Look As They Hire

By

Ndubuisi Ekekwe

-

June 18, 2019

0

Banks, oil companies, and telcos like to hire at least Second Class Upper graduates. The reasoning is simple: those grads have done well on something. Yes, they scored a set-piece goal in that football game of university education. It is not really the grade that matters but the processes to get to the grade. Making good grades demand discipline, focus and mastering of time. So, if they can replicate those attributes at work, they would be good employees.

The biggest victory in life is victory over your time. If you master your time, you will win your future. Greatness has been achieved not because of special talent but rather via total dedication, perseverance and commitment through mastering of time. A man who cannot manage his seconds will wander through the boundless of time.

It is irrelevant that a Second Class Lower may be better as an employee. Current data before the HR officer has demonstrated he did not score the set-piece goal in university education. Perhaps, even though he seems talented, data via grade is showing he could not manage time and other elements to score better grades. Why do you think he will be better as an employee?

Young people, it is painful when I see brilliant people lost in the sea of career because of poor grades. Good grades open great scholarships. They bring good jobs. They give you options. And when you match the grades with capabilities, opportunities abound. Do not be shy on pursuing great grades – those outcomes demonstrate your commitment to succeed on a cause.

The biggest misstate in life is when people fail to understand that while grades may not determine sustained winners, the processes to good grades have predictable outcomes. A student, who graduated with Second Class Lower (2.2) because he worked to put himself through school, managing many factors concurrently, will be fine. Those processes sustained will see him through in his career. He is different from another Second Class Lower who lazily cannot make time to study. He has the mind for First Class but being unfocused landed in 2.2. Unless he changes his process, he will struggle.

Life is not just defined by outcomes but the processes that lead to the outcomes. If your processes are great, society will reward you, not just in the specific endeavor but other areas. Yes, you may have 2.2 after putting your best with discipline and focus, but the cherished job is unattainable, relax because society will reward that work ethic. But if you made that 2.2 because you were exceedingly unfocused, your problem is not the grade, but your process. Until you fix that process, you will struggle.

How To Make Great Decisions

By

David Alade

-

June 17, 2019

0

By David Alade

Life defining decisions always require a leap of action, we find it hard to take these actions as we move forward in life. The reason for this though not considered in this article, I will be taking time to take us through “how to ensure we are making a worthy decision in the light of three purviews.”

The purviews are not a guarantor nor would they be painted to serve as one, but they tend to reduce the probability of us making a harmful decision.

There is something we all know about making a decision: we all know it will either make or mar us depending on whether we make it, when we make it, and how we make it.

There is another thing about decision that is not always so obvious; it requires a LEAP, a leap of action. Life defining decisions always require a leap and many times the leap is demanding hence we fail to make it.

How do we ensure that we make the right decision at the right time and take the required leap per time? It remains a puzzling question and the answer I’ve come up with may surprise you.

The first thing I realized about this puzzle was that, while some decisions appear right on the go, some are contemplative, i.e. it’s a great decision to be educated no one will or should contend that (right on the go), on the other hand which avenue should I use in pursuing my education can be contemplative hence requiring a leap either of monetary investment or time investment.

The second is, the majority of our life-defining decisions are contemplative. Unlike should I sleep now or not, questions like should I marry, who should I marry, should I attend grad school and should I quit this job are highly contemplative questions.

Third, because the majority of our life-defining decisions are contemplative, we cannot always be sure whether we are right or wrong. To make all decisions on the altar of right or wrong will leave us in an undeserved perplexity, because it is neither right to attend to attend grad school nor wrong not to attend. It is much deeper.

If we cannot always be sure whether we are right or wrong on life-defining decisions, then I think it behooves us to conclude on another metrics beyond right or wrong upon which we can make contemplative decisions.

The new metrics I came up with are under three purviews.

Purviews because are not a yes or no decision metric but a metric that helps us reduce the confusion within our contemplative decisions.

The 3 purviews are:

Second-Party Purview
Self-Settlement Purview
Sliding-Time Purview

Second Party Purview

Law of large numbers in mathematics tells us that “with an increasing sample size that tends towards meeting up the population size, we tend to have a true and representative global mean of a distribution.”

It’s not a complicated way of thinking, the law is simply saying with more opinion that you get from different people regarding your contemplation, the more you are able to access the veracity of your decision based on different idiosyncrasies.

These are sample opinions you should get.

Opinion from those who seem to be always antagonistic
Opinion of those who seem to be supportive

Opinion of those above you and that of those of your peer and when needed those below.

As much as possible get all second party’s view on a decision that you can get. The beauty of this is that they will see things differently from you and help refine your thinking based on their own experience. You will benefit from the wealth of knowledge and judgment of those whose opinion you sorted.

Don’t be afraid to ask others opinion I must add, a friend that went through the first draft of this article has this to say, “I have found that whenever we are reluctant to subject our opinions and thoughts to others to judge, it is because somewhere in our heart we know we are wrong and we know others will point it out to us – and we don’t want to face the truth so we hide away” – you want make sure this is not the reason for your hesitant to get a second party opinion.

Don’t be fooled though by the folly of the multitude, sometimes multitude can be wrong and that is why you have the next point which will be discussed.

Self-Settlement Purview

A decision whose upside and downside you cannot accept should hardly be considered at all. This purview is really about you, your experiences, idiosyncrasies, and judgement metrics. Like I mentioned earlier, it’s not about right or wrong, it is about your readiness for what you are considering.

All what you are made of plus the opinions you’ve sampled from the first purview come together at this point so you can think your decisions through and make a call regarding your leap.

I put this in number 2 because you really may not be able to consider all views/angles yourself until number 1 is done. With number 1 done, you tend to think more clearly about your options.

The self-settlement is about you being ready to take and accept the decision.

Sliding Time Purview

“Don’t make a promise when you are happy and never make a decision when you are angry” is still a valid caution. The tendency is there that your life-defining decision requires that they be made when you are not mentally ready to make such, as much as possible buy yourself enough time to think clearly without emotions on the decision. What you want now and in 3 hours you don’t want again is an example of decision that sliding time purview will greatly help to fix.

Let time slide and see if you still want to abide by that decision.

Sliding time purview is well known and can be a very useful tool. Remember an observer cannot truly understand a system of which he himself is a part, sliding time affords you the opportunity to separate yourself from the system for a while.

With this said, plus your careful consideration of the spirit of the word, you are on your way to living a life where you have less and less decisions to regret in life.

Ask another person about it, don’t take unilateral decisions, take time to consider all points of view before deciding, and after you’ve decided, before execution, allow time to pass if it’s possible. You should hardly go wrong. This is a needed loop as you journey on in life and make life-defining decisions.