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Paxful Bitcoin Exchange Launches Plans to Help Venezuela's Unbanked Citizens
Bitcoin Exchange Paxful Plans To Target Venezuela’s Unbanked
Paxful, a P2P Bitcoin exchange, has been trying to find new markets and it looks like Venezuela might be one of them. The company has recently revealed to the media that it has plans to open an office in Venezuela, a country that is currently ridden by hyperinflation. The company will enter the market in September and then release its Android app there in October.
Ray Youssef, co-founder of Paxful, has explained that the move is part of a wider plan of the exchange to reach developing nations where there many mobile phones and remain to the crypto market is still somewhat scarce. He believes that the underbanked are people in a desperate situation in countries with inflation and this is why Paxful can add value to these communities.
About The Paxful Exchange
The company currently has 2 million users over the world and a total of 65 employees. The biggest market of Paxful is in Africa, which already has the highest rates of unbanked adults in the world according to a study made in 2010.
According to data from the company, Nigeria made 772,000 trades of Bitcoin averaging $64 USD each and Ghana made 50,000 trades averaging $56 each only in June 2018.
The people from the company believe that companies like Paxful and LocalBitcoins, Binance, KuCoin and Luno, other popular crypto exchanges from the region, are so popular in the country because there is a lot of unbanked people combined with high inflation because of lack of stability in the region. Also, there is a harsh problem of liquidity to send remittance money.
Paxful In Venezuela
According to Paxful, Venezuela faces a similar problem to some African nations, as it has a high inflation and a very unstable economy at the same time that a lot of people are unbanked and vulnerable to these problems, so it has a great market to be explored.
There is a trade market being developed in Venezuela because cash is becoming scarce and most people do not want to use what they have because they can get huge discounts if they use it, so they prefer to save it for when they need it the most.
To help in this national situation, the upcoming app that will be launched on the country in October will have some important features like an in-app calculator that helps people who use volatile currencies like the Venezuelan Bolívar.
The Issues Of Attending The Unbanked
One of the main problems that Paxful has found on the road is that the communities that could benefit the most from crypto exchanges are exactly the ones that have problems that get in the way of using them. According to the company, in these poorer nations it is not uncommon that bank wire transfers are too expensive for people to pay.
Also, many of the poorer population do not have government-issued IDs, which makes the job of whitelisting them to use the platforms considerably more difficult than it would be in other situations. It does not matter whether a traditional bank or an exchange, international regulations for anti-money laundering practices require financial institutions to take the ID of its clients.
Because of this, from September onwards, Paxful will have to require IDs from buyers of Bitcoin as a way to fight fraud and keep the company legal in most countries. Until now, the company only required sellers to upload their IDs, but that had to change.
According to Youssef, most Paxful users were female for a long time and they are more vulnerable segment of society. Because of this, they lacked IDs and bank accounts. However, not requiring IDs can cause many problems for a business that is 100% online.
Unsurprisingly, the company attracted a lot of scammers over time, so it had to take this attitude to stop the problem, as it was proving difficult to weed them out individually. Because of this, Youssef told the media that the company would be redoing the whole KYC process in order to fix these problems.
However, there is still hope for the unbanked. Beyond the traditional ID system, Paxful will accept the Nigerian BVN Code, a form of biometric ID, fingerprint scanning or third-party KYC providers like NetVerify, Jumio, Onfido and Veriff. AI will be also used to detect criminal behavior in the next version of the app.
Rwanda Welcomes Second School by Paxful Crypto Trading Exchange's #BuiltwithBitcoin Initiative
Paxful is a P2P crypto exchange. It recently completed building a second school in Rwanda that was done purely based on BTC donations via the #BuiltWithBitcoin initiative. This primary school serves students up to 14 years. Paxful intends to provide the students with tablets and smartphones. Besides that, the curriculum will go back to the basic liberal arts notion of trivium et quadrivium also called classical education.
How It Will Function
Both the students and the teachers will learn about the blockchain and the bitcoin as a core part of their education. This will potentially prepare the kids for a future in Rwanda, which is being buttressed by the willingness of the government to embrace modern technology. Students will be taught how to transaction using BTC and even how to exchange it for local fiat. This will be an important practical lesson that they can take home to parents. Paxful will be of course the realistic methods they are taught to use, amongst many others.
About The School
The school consists of six classrooms that each has a teacher. There is also electricity and running water. There is a cafeteria and other modern amenities that most students in the west take for granted.
The CEO of Paxful Ray Youseff said that he was encouraging those in the crypto world to make more contributions to humanitarian projects. Their build school initiative is a good example of how BTC can go towards more than mere speculation. In fact, it can be quite useful to help those in need. He added that besides this new school, they had also built a nursery school in Africa. They have also offered scholarships to Afghan refugee students. They plan to continue in this humanitarian work in the future.
In July, the company announced that they would work with ZamZam Water, which will ensure that the school is supplied with water. This is great since it is not always a guarantee in that part of Africa.
The eventual goal of Paxful is to create 100 schools in Rwanda. When that is done, that does not mean they will stop being philanthropic. They raise the funds via their platform and on social media campaigns. These funds are then turned into schools.
Thus far, they have done a lot with very little. Their BTC address can also accept other major coins. It has only gotten 15 BTC thus far. While it is not much, it shows how much can be done with so little in places such as Rwanda. It also shows the potential influence that BTC will have on Rwanda, which has fully embraced the technology.
Paxful remains one of the best P2P marketplaces for crypto in the world. It has a simple goal of unseating the well-known LocalBitcoins platform. Thus far, its mission to woo the masses with kindness appears to be winning it some points. Besides that, it is nice to see crypto being used for kindness instead of just making a profit.
Paxful Peer to Peer Crypto Exchange Gets Bulk of its Bitcoin Trades From Africa
Bitcoin peer to peer trading platform, Paxful, has recently been witnessing a massive growth in its usage rate from within the continent of Africa. As per latest numbers released by the US based company, Africans now account for a bulk of all cryptocurrency transactions that are facilitated on the platform ($64.5 million).
African Millennials Are Driving Crypto Demand
It is being reported that within the past year alone, Paxful customers all through Africa rose by around 225 percent. Further elaborating on these figures, Ray Youssef, CEO of Paxful, told local media outlets that transactions on the exchange climbed by over 60 percent in Nigeria, whereas usage in South Africa too increased by over 25 percent.
He also mentioned that:
“The adoption of bitcoin across the globe re-affirms our belief that crypto will take its place as a mainstream financial system. As has been the case with other disruptive financial tech innovations like mobile money, Africa is leading the peer-to-peer financial revolution.”
Africans Are Becoming More Crypto Savvy
Owing to the growing awareness regarding cryptocurrency, it has been observed that each month more and more people from Africa are opening new accounts with Paxful (than from any other region of the world). In addition to this, studies also indicate that on an average, Africa’s youth spends around $59 each on BTC via Paxful per annum ( a respectable number to say the least).
Government Agencies Are Not Thrilled About Crypto
Even though the masses at large within the continent of Africa have welcomed crypto assets with open arms, local governments within nations such as South Africa, Zambia, Namibia and Mozambique have taken a harsher approach towards this burgeoning sector and banned crypto altogether.
Lastly, in this regard, Paxful COO, Artur Schaback, had the following choice words:
“As a company, we’ve learned a lot from African consumers. For instance, we’ve improved our mobile capabilities to cater to the widespread use of smartphones on the continent. Our experience in Africa has strengthened our capability to serve consumers regardless of geographical location or origin.”
Paxful and Zam Zam Water to Build Second Crypto-Funded School in Rwanda
There Is A Second Crypto Funded School That Is Being Built In Rwanda
School construction is underway thanks to a cryptocurrency platform and an NGO who have come together for the project in Rwanda. This will all be made possible with the use of cryptocurrency funding.
More On The Project
The NGO referred to us Zam Zam Water has come together with Paxful a Peer-to-Peer finance platform that is aiming to raise about $100,000 for the construction of an education center. The project is said to be implemented at Bugesera District in Rwanda, and it will be complete having a full time teaching stiff within the institution.
This education center project that has been Launched in Rwanda is not the first of its kind within the region, as there was a similar projected that was opened not too long ago for children between the ages of three to six. Thus, this new project will be built to complement the first school by being able to accommodate children aged between six to fifteen.
The building cost is estimated to be $100,000, and the raising of these funds has been started by having a donation of about $20,000 from the Paxful platform. The remaining funds for the project will be raised through crowdfunding. It is expected to be cryptocurrency donations that will be made either through Bitcoin Cash, Bitcoin, Ethereum, Dash, and Litecoin.
The funds raised will be matched by the various crypto platforms that are BuiltWithBitcoin initiative until the needed funds have been raised for the project.
The CEO of Paxful platform, Ray Youseff said that the BuiltWithBitcoin initiative is going to be a testament to the power that the crypto-coin has. He further states that he wholeheartedly believes in the capacity of these digital assets in improving the lives of various individuals and making the world a much better place.
The Education Center Will Be Improved and Much Bigger
This second project is expected to be the larger school form the two; it is estimated that it will actually be double the size of the first project. It will have six classrooms within the education center and about six full-time teachers. But this is not all as the school has been designed with its own cafeteria, sustainable solar panel for the power system and a potable well.
The founder and also President at the Zam Zam Water NGO, Yusuf A. Nessary, recognizes having proper education centers is fundamental in moving countries forward such as Rwanda. He states that education is a crucial tool in helping the various individuals in the developing nations to increase the standard of living. Thus, he is very pleased to have partnered with the Paxful platform to ensure they adequately serve the young children.
He further states that this is a very small glimpse of what they can and what they plan on doing thanks to the power of the cryptocurrency.
The Crypto Coin Is Increasingly Being Used to Fund Projects
The crypto coin is being used by many individuals to fund the various humanitarian projects taking place in developing countries around the world and most of the concentration being on the African continent. The Powerhive, which is a global micro-leasing marketplace has just announced their partnership that is geared towards offering decentralized solar power options to the developing countries.
The beneficiary of the funds raised is the AfricanPowerhive; the funds will be generated from the sale of SUNEX reward tokens from the Sun Exchanges, this will be done through a public sale. The money collected from the sale will then be spent on the development of the solar-powered mini grid within the Sub Saharan Africa.