Mentor. Accelerate. InvestDeveloping tech entrepreneurs in subsaharan Africa

www.savannah.vc

Virtual Currency & Emerging Markets

@mbwana

@savannahfund

@afrikoin #Afrikoin

http:www.afrikoin.org

• Electronic (fiat) Money: Mobile Money..

• Centralized: Airtime miles, Mobile Airtime

• Decentralized Cryptocurrencies

• Unique pieces of digital property that can be transferred. "pseudonymous"

• Gets over the double spend problem for digital money

• Created from "mining" - solving complex math problems with powerful PCs. Elaborate incentive system for rewarding miners

What are virtual currencies?

• Wallets: unique address like email where you can store virtual currency

• Exchanges act as key cash in and cash out points similar to mobile money agents. Online and Offline ( mt.gox, bitx.co.za bter.com

• Trusted brokers. E.g. Coinbase, Kipochi, Bitpesa

• Trust and Compliance is VERY IMPORTANT. (E.g. Mt Gox losing 744,408 bitcoin worth $350M). Or bitisnstnt CEO arrested for money laundering

How do you use virtual currency?

• Trusted brokers/fixed Exchanges: E.g. Coinbase, Kipochi, Bitpesa

• Trust and Compliance is VERY IMPORTANT. (E.g. Mt Gox losing 744,408 bitcoin worth $350M). Or Bitinstant CEO arrested for money laundering

How do you use virtual currency?

• As a store of value (hedge against inflation, risks- Ponzi scheme)

• As a secure ledger... The value of transacting globally, disrupting banking whilst seeing every public transaction

• As a payment system (ECommerce & Micro-transactions )

• As a global decentralized currency

The 4 pillars of virtual currency

• How does one protect wealth against risk in holding your local currency

• Many hold USD, any issues?

• Zimbabwe and South Africa capital controls

As a store of value

• [Demo the blockchain live]

• Tracking "anonymous transactions". KYC/AML

• Helping track Govt. spending against corruption

• Disrupt banks in Africa to move away from a "banking fee" model to more needed area such as lending

As a secure Ledger

• Ecommerce: Bitpay, paybutton

• Microtransactions: especially in financial services for the poor and donations.

• No charge back and less fraud issues dealing with plastics money

• It competed directly with mobile money and banks, cutting fees directly and more global and instant.

• Remittance or remittance driven ecommerce.

As a more effective payment system

• Subject to taxation on gains

• As a foreign currency.

• Is it money or a commodity?

• Not permitted for merchant acceptance (illegal)

Legality of a Bitcoin

www.bitlegal.io

http://99bitcoins.com/bitcoin-worldwide-adoption-status/

• Internet of money + Network effects. Think Skype, Facebook, Whatsapp + virtual currency

• A better way to connect and crowdfund

• The more the currency spread the more valuable it becomes

Social Network + Currency

www.thecypherfunks.com

A decentralized currency, and a decentralized band requires permission from no one. We are all "The Cypherfunks". This community requires plenty of people to contribute. Software developers, musicians, promoters, miners and fans. Anyone contribution is a great contribution.

Dogecoin + Twitter

• A much better user experience

• Taps directly into a community