Tech and economic shift unlocks SA economy
In the heart of South Africa’s vibrant township economy, valued at an estimated R750-billion, a transformative shift is taking place. Small to medium-sized businesses are flourishing as the adoption of cashless transactions grows. Despite the widespread availability of banking services, with eight out of ten South African adults having a bank account, cash remains the dominant form of payment. According to Statista, 73% of point-of-sale transactions are still conducted in cash, highlighting the need for a significant push towards digital payments.
The reliance on cash is particularly evident in the bustling township economy, where more than 1.8-million informal traders operate. This reliance on cash is driven by several factors, including the immediacy and ease of use that cash provides. Its inclusive nature allows everyone to participate in the economy irrespective of financial standing or status.
Read more here: https://gadget.co.za/techeconomic2145t/
Exploring AI’s impact on anti-money laundering efforts globally
Money laundering remains a major global issue, affecting financial stability and security across the world.
Saifr noted that annually, the estimated volume of money laundered sits between $2.17 trillion and $3.61 trillion, representing around 3-5% of the world’s GDP.
The process of money laundering typically involves three key stages: placement, layering, and integration. During placement, the ill-gotten gains are initially introduced into the financial system, often converted into cash equivalents or deposited directly into banks.
As Saifr outlines, the layering stage sees the money shuffled through various transactions, disguising its origins through complex transfers involving different accounts and countries. Finally, integration occurs when the laundered money is used to purchase assets, giving it the appearance of legitimacy. AML systems are crucial at each stage, aimed at detecting and stopping these practices by monitoring transactions, verifying customer identities, and alerting authorities about suspicious activities.
Read more here: https://fintech.global/2024/08/21/exploring-ais-impact-on-anti-money-laundering-efforts-globally/
Yellow Card Leverages Fireblocks to Streamline Cross-Border Transactions in Africa
Yellow Card, Africa’s leading stablecoin on/off ramp, has announced that it is integrating digital asset infrastructure provider Fireblocks to improve cross-border transactions for both businesses and individuals. By utilizing Fireblocks, Yellow Card seeks to remove obstacles for global corporate treasury, in accessing African markets, by offering secure and effective on-chain solutions. This includes leveraging Fireblocks’ Wallets-as-a-Service (WaaS) which enables Yellow Card to create, manage, and secure up to 14 million multi-party computation (MPC) wallets at scale and safeguard customer assets.
“We’re excited to work with Fireblocks to enable real-world use cases for stablecoins, solving the complex challenges of international and pan-African transactions,” said Chris Maurice, CEO and co-founder of Yellow Card. “Together, we enhance how businesses around the world manage their treasury, make payments, and drive innovation across Africa.”
Read more here: https://ffnews.com/newsarticle/cryptocurrency/yellow-card-leverages-fireblocks-to-streamline-cross-border-transactions-in-africa/
PEXX Acquires Blockchain Media Platform Chain Debrief After US$4.5M Raise
PEXX, a fintech startup specialising in stablecoin cross-border payments, has acquired Singapore-based blockchain media platform Chain Debrief.
The acquisition, made for an undisclosed amount, follows PEXX’s recent US$4.5 million funding round led by TNB Aura and Antler.
This acquisition allows PEXX to integrate Chain Debrief’s content, including articles, tutorials, and expert analyses, into its platform.
Read more here: https://fintechnews.sg/100520/blockchain/pexx-acquires-chain-debrief/
Swiss launch instant payments to catch up with Europe
ZURICH – Swiss companies and consumers are now able to make instant electronic payments, catching up with other European financial centres where the ultra-fast transfers are increasingly popular.
Instant payments allow credit transfers within 10 seconds of a payment being made rather than waiting for days for the transaction to clear. They have been in use in Europe since 2017 and in the U.S. since last year.
In Europe, the use of instant payments has risen from 5.2% of all credit transfers in October 2019 to 17.8% in February this year, according to the European Central Bank.
Read more here: https://www.zawya.com/en/business/fintech/swiss-launch-instant-payments-to-catch-up-with-europe-vahtirex
HSBC reportedly considering sale of its South African business
HSBC Holdings is reportedly mulling the sale of its South African business to concentrate on Asian markets, according to Bloomberg.
Bloomberg reports that banks from Africa, China, and the UAE are among the potential interested bidders for the bank’s South African unit, citing sources familiar with the matter.
The report adds that no deal is finalised or guaranteed, and the details of any potential agreements are still under discussion.
As stated on its website, HSBC’s “principal activities” in South Africa include providing “banking services to our corporate and wholesale clients, as well as a representative office for the Private
Read more here: https://www.fintechfutures.com/2024/08/hsbc-reportedly-considering-sale-of-its-south-african-business/
Binance to Add 1,000 Roles, Prioritising Compliance Amid Regulatory Challenges
Binance Holdings is set to expand its workforce by 1,000 employees in 2024, with a key emphasis on bolstering compliance teams, according to Bloomberg.
The company plans to increase its compliance staff from 500 to 700 as part of this growth.
This hiring push comes amid Binance‘s rising regulatory expenditures, which have now surpassed US$261 million, including oversight due to a U.S. plea agreement.
Read more here: https://fintechnews.sg/100533/crypto/binance-to-add-1000-roles/
