Emerging markets have some way to go before trusting crypto currencies, commentators say.
A number of local and African start-ups have so far had mixed results in encouraging virtual currency uptake, including Bitcoin, and still face an uphill battle amid an unregulated climate.
Mobile marketing and technology company Mahala Mobile recently introduced Madibacoin (../?id=134372:Madibacoin-set-to-launch-'soon'), aiming to encourage local crypto currency uptake by allowing users to exchange coins for airtime purchases. However, the venture is now set to shut down, owing to system imbalances that emerged as soon the currency was made available.
Madibacoin was launched based on the principles of Bitcoin, which allows users to send payments within a decentralised, peer-to-peer network, without the need for a clearing house such as a bank.
Bitcoin enthusiast (http://harounkola.com/)
Kola says virtual currencies are vulnerable to these attacks – and in danger of losing value as new miners are launched. "Application-specific integrated circuit miners for Script code – the alternative to Bitcoin's SHA algorithm – are being launched and, while Bitcoin mining is not viable for the ordinary person, Script allows users to use GPU or CPU to mine coins.
He says any company that wants to compete in the virtual coin market must steer clear of thinking local. "You can start local, but ultimately you need to think global. Any coin that is likely to compete in the market will be one that was created with the world in mind."
BitPesa (https://www.bitpesa.co/) aims to ensure its long-term survival by competing with established remittance payment providers. The platform encourages expatriates to send any amount of Bitcoins to recipients in the east African nation using BitPesa, which converts the crypto currency into Kenyan shillings.
The company says money transferred through BitPesa is available in the recipient's mobile money wallet "within minutes".
But the ever-present question of trust in a largely unregulated crypto currency sector has again reared its head, with the
The EBA added that individuals validating transactions – or miners ? can remain anonymous, and so can payers and payees, meaning IT security cannot be guaranteed and the financial viability of some market participants remains uncertain.
Coinmap (http://coinmap.org/) – a Web site that tracks and maps businesses trading in such currencies. While that number has shown marginal growth in recent months, commentators note it has some way to go to show growth comparable to markets such as the US and
BitX launched last year and allows people to securely trade the currency. However, BitX co-founder
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