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USA and Nigeria to Discuss Digital Economy and AI Advancements for Economic Growth

The United States of America (USA) and Nigeria are poised to explore potential partnership opportunities in the digital economy, emerging technology, and the advancement of artificial intelligence (AI). The discussions aim to strengthen economic ties between the two countries and foster deeper collaborations in these areas.

The Deputy Chief of Mission at the U.S. Embassy, Mr. Arthur Brown, announced that high-level U.S. government officials will be in Abuja for a conference under the auspices of the U.S.-Nigeria Bi-National Commission. The conference will provide a platform for both countries to discuss the digital economy, emerging technology, and AI advancements.

During the closing ceremony of a four-day Workshop on National Artificial Intelligence Strategy in Abuja, Mr. Brown highlighted the importance of fostering partnerships and working together to drive robust, resilient, and inclusive economic growth. The United States is ready to work with Nigeria as equal partners in various areas, including talent development, infrastructure, research, and innovation. Mr. Brown also commended Nigeria for its support on the adoption of a landmark United Nations resolution on AI and pledged the U.S. government’s continued partnership with Nigeria on the economy.

Nigeria has shown a growing commitment to AI and emerging technologies in recent years. In November 2020, the country established the National Centre for Artificial Intelligence and Robotics (NCAIR), the first of its kind in Africa, marking a major moment for state-level commitment to AI. The NCAIR was established in line with Nigeria’s National Digital Economy Policy and Strategy 2020 – 2030, which listed AI as one of the eight pillars of the country’s digital economy.

Since the establishment of the NCAIR, AI has featured more prominently in government policy efforts. The NCAIR launched programs to equip children with coding and machine learning skills, making them conversant with AI and other emerging technologies. The Nigerian government has also directed the Nigerian Communications Commission (NCC) to provide AI research grants to tertiary institutions to drive innovation and improve economic resilience.

In March 2023, Nigeria drafted a National AI policy, co-created by the National Information Technology Development Agency and industry experts, to further strengthen its AI commitment. The country has also launched initiatives like the 3 million Technical Talents (3MTT) program and the Nigeria Artificial Intelligence Research Scheme (NAIRS) to train young people in AI and support AI startups and researchers.

The upcoming discussions between the USA and Nigeria present an opportunity for both countries to share knowledge, expertise, and best practices in the digital economy, emerging technology, and AI advancements. By aligning AI governance and ensuring safe, secure, transparent, and trustworthy AI deployment, the partnership aims to drive economic growth and innovation in both nations.

Image source: Shutterstock

Blockchain Technology Implemented into Indonesia's Digital Economy

Indonesia’s digital economy market projected at US$100 billion by 2025
Indonesian e-commerce transactions have surged by 151% since 2017
Internet penetration in Indonesia stood at 64.8% of Indonesia’s total 264.7 million population

Bank Central Asia (BCA) is campaigning for Indonesian financial businesses to innovate and adopt blockchain technology to support its digital economy amidst rapid technological revolution.

Indonesia is currently the third-largest digital market in Asia behind China and India and is projected to be a very lucrative prospect in terms of the digital economy market which has driven BCA’s initiative to encourage the adoption of blockchain technology.

Google projected Indonesia’s digital economy to reach US$27 billion in 2018 in the Southeast Asia Economy report. Bank Indonesia’s data revealed that Indonesia’s e-commerce transaction stood at Rp77.766 trillion in 2018, which is a 151% increase compared to 2017’s Rp30.942 trillion. In 2025, Indonesia’s digital economy market has been forecasted to rise to US$100 billion.

Indonesia’s digital economy potential is further confirmed with a significant number of active internet users. According to a report by the Indonesian Internet Service Providers Association (APJII), at least 171.17 million of the total 264.7 million Indonesian population are connected to the internet, with 90% using their smartphones to access the internet.

To drive the adoption of blockchain technology innovation, BCA will hold its annual IT competition the Financial Hackathon (Finhacks) 2019. The competition is entering its fourth year in Indonesia and will focus on the application of blockchain technology to support the financial industry.

Image via Wikimedia Commons

Chinese President Xi Jinping: Participate in Making Digital Currency and Digital Tax's International Rule Actively

Updated 31 October 2020 12:06 pm UTC

China’s President Xi Jinping will publish an article on November 1 outlining the President’s strategy for China’s growth through the COVID-19 pandemic and highlights fostering a digital economy and digital currency.

China’s General Secretary of the CPC Central Committee, President, and Chairman of the Central Military Commission Xi Jinping will publish an article entitled “Several Major Issues in the National Medium and Long-term Economic and Social Development Strategy“ on November 1 on Qiushi (Seeking Truth) Journal, a CPC central committee political theory periodical.

The article emphasizes that the world today is undergoing major changes unseen for a century. The coronavirus pandemic is not only a crisis but also a big test. In the article President Xi says now we must draw inferences from one another, carry out more long-term thinking, improve the strategic layout, and achieve high-quality development by turning crises into opportunities.

The article has 6 main points:

First, firmly implement the strategy of expanding domestic demand.

Second, optimize and stabilize the industrial chain and supply chain.

Third, improve the urbanization strategy.

Fourth, adjust and optimize the structure of scientific and technological input and output.

Fifth, to realize the harmonious coexistence of man and nature.

Sixth, strengthen the construction of the public health system.

On the second point about the industrial chain and supply chain. President Xi talks about the digital economy. He said:

“Our country’s online economy has led the world and played an active role in the prevention and control of this epidemic. Online office, online shopping, online education, and online medical services have flourished and are deeply integrated with the offline economy. We must take advantage of the trend to accelerate the construction of digital economy, digital society, and digital government, promote digital optimization and upgrading in various fields, and actively participate in the formulation of international rules including digital currency and digital tax to create new competitive advantages.”

President Xi’s statements further reflect his highlights on the digital economy and blockchain. On 2019 Oct 24, he delivered a speech on the development of blockchain technology, saying that “we need to take blockchain as an important breakthrough for independent innovation of core technology”. Blockchain as the infrastructure of digital currency, with the great potential in reshaping the monetary and financial system and almost all other industries, is one of the core technologies that major countries compete in.

BTG Pactual Launches Stablecoin Backed by USD

The Brazilian investment firm BTG Pactual has revealed that it would be releasing its very own stable currency, which will be known as BTG Dol. The bank’s custody services will be required in order to have access to the stablecoin, which will have a one-to-one correlation with the US dollar as its backing. This action is in line with a trend that has been seen by major financial institutions all over the globe to provide cryptocurrency services to their respective client bases.

The customers of BTG Pactual will have a simple and risk-free method of investing in dollars thanks to the stablecoin that the company has developed. According to André Portilho, who is the head of digital assets at the bank, the stablecoin will make it possible for consumers to “dollarize” a piece of their equity, which will make it easier for conventional finance and the digital economy to engage with one another.

There is a subset of cryptocurrencies known as stablecoins. The value of a stablecoin is tied to the value of an underlying asset, such as the US dollar or gold. In contrast to conventional cryptocurrencies like Bitcoin, which are notorious for their price swings because to their lack of centralized control, this gives the value of the cryptocurrency some degree of predictability.

The decision made by BTG Pactual to develop its own stablecoin comes at a time when interest in cryptocurrencies is continuing to increase on a global scale. Stablecoins offer a more stable option for those who wish to invest in cryptocurrencies but are hesitant due to the high volatility that is associated with traditional cryptocurrencies. As a result, the use of stablecoins has become increasingly popular in recent years. This is because stablecoins offer a more stable option.

The bank has a bigger aim to integrate digital assets into its services, and the introduction of BTG Dol is a component of that ambition. In the last several years, BTG Pactual has made significant strides in broadening the scope of the cryptocurrency services it provides via the establishment of a cryptocurrency exchange as well as a digital asset investment fund.

In general, the entry of BTG Pactual into the field of stablecoins is illustrative of the growing interest in cryptocurrencies among big financial organizations. With the introduction of BTG Dol, the bank is giving its customers a more secure and reliable choice for investing in the digital economy than they previously had.

HKUST Vice-President Urges Hong Kong to Issue Stablecoin HKDG

According to TKWW, key figures including HKUST Vice-President suggest that the Hong Kong government should issue its own stablecoin, referred to as HKDG, as a strategic move to bolster the city’s digital economy.

Hong Kong SAR government’s ongoing promotion and acceptance of digital assets positions it ahead of countries or regions such as the U.S and Singapore. In this context, stablecoins, bridging the gap between traditional finance and the digital economy, are becoming increasingly important. Issuing a stablecoin linked to the Hong Kong dollar could significantly enhance transaction efficiency, reduce costs, and strengthen the region’s fintech capabilities.

However, the government’s current stance of encouraging private institutions to issue Hong Kong dollar stablecoins is seen as too conservative by industry insiders. This strategy might lead to stablecoins with marginal market impact, a concern underscored by the example of Singapore’s XSGD.

The experts argue that a Hong Kong dollar stablecoin, supported by the city’s foreign exchange reserves and government regulations, could provide a double guarantee of safety. Such a stablecoin, HKDG, could pose a challenge to dominant stablecoins like USDT and USDC, which currently hold market capitalizations of $830 billion and $280 billion, respectively. Given Hong Kong’s foreign exchange reserves of $430 billion, a government-backed HKDG offers greater credibility and lower risk.

The proposed HKDG could also represent a significant step towards de-dollarization. While it might not singlehandedly disrupt the dominance of the US dollar, it could challenge its supremacy within the digital asset ecosystem. The successful implementation of HKDG could inspire other sovereign currencies to follow suit, promoting diversification in the global financial market.

In essence, the call for a government-backed stablecoin like HKDG underscores both the potential and urgency for Hong Kong to establish a more commanding presence in the rapidly growing digital economy.

This proposition is co-authored by Wang Yang, Vice President and Chief Science Advisor of the Hong Kong University of Science and Technology and the Hong Kong Web3.0 Association, alongside renowned angel investor Wensheng Cai, Web3.0 Tech company founder Zhibin Lei, and doctoral student Yizhou Wen from the Hong Kong University of Science and Technology. Together, they’re advocating for a significant shift in strategy.

NBG Georgia Shortlists Ripple Among Tech Firms for CBDC Pilot

The National Bank of Georgia (NBG) is propelling forward with its Central Bank Digital Currency (CBDC) venture, dubbed the Digital GEL Pilot Project. The bank is now in the phase of scouting for a singular technology ally to facilitate the Limited Access Live Pilot Environment. This environment aims to scrutinize the technological prowess and possible applicative spheres of the CBDC system through an array of use cases.

Post an extensive research tenure and meticulous deliberation, NBG has culled a list of nine enterprises deemed fit for this exploratory journey. These firms have showcased ample technological potential, maturity, capacity, pertinent experience, and enthusiasm for on-field examination. The notable list comprises Augentic GmbH, Bitt Inc., Broxus Holdings Ltd., Currency Network Ltd., DCM Corp Limited, eCurrency Mint Inc., FARI Solutions Ltd., Ripple Labs, Inc., and Sovereign Wallet Co., Ltd. At the current juncture, NBG maintains a technology-neutral stance, weighing the varied technological solutions these shortlisted companies can contribute to the Digital GEL project.

A Central Bank Digital Currency (CBDC) is essentially a digital form of a country’s existing currency, which is issued by the country’s central bank. Unlike decentralized cryptocurrencies like Bitcoin, a CBDC is centralized and enjoys the same legal status as physical banknotes and coins. It’s an endeavor to modernize the financial infrastructure and respond to the digital economy’s exigencies.

Among the shortlisted entities, Ripple Labs, Inc. holds a unique position with its Ripple CBDC solution. This solution aims to provide a neutral bridge between different currencies, allowing for frictionless value transfer, which can be particularly beneficial in the realm of cross-border transactions. The Ripple CBDC platform could potentially offer a robust foundation for the Digital GEL project, aligning with the objectives of fostering a seamless and inclusive financial ecosystem.

Upon concluding the selection phase, NBG aspires to earmark a single technology partner to transition into the pilot phase. This phase will test the CBDC platform in a restricted-duration live setting, evaluating the pragmatic use cases therein. The anticipation surrounding this pivotal pilot project is palpable, signifying a significant stride towards modernizing Georgia’s monetary landscape and embracing the digital currency epoch.

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