“Ponzi scheme creates negative reputation for industry” – Uganda Blockchain Advocate – Interview with Bitcoin News

Education and awareness campaigns are still seen as important channels for attracting people to cryptocurrencies and blockchain. This is especially true in certain parts of Africa, where Bitcoin and other cryptocurrencies are proving to be useful alternatives to fiat currencies.

Blockchain Education and Advocacy from Uganda

Despite the surge in the use of blockchain technology and cryptocurrencies since the pandemic-induced lockdowns, many people, especially Africans, are still unfamiliar with these technologies.

To bridge this knowledge gap, many blockchain enthusiasts in Africa choose to focus their efforts on educating their fellow citizens on the basics of blockchain.In Uganda, blockchain enthusiasts Daniel Mulondo and Killian Mugenyi created a project called Nero, which is not only designed to educate, but also to help raise awareness of potential crypto scams.

In an interview with Bitcoin.com News, Mugenyi explained how their efforts to raise public awareness have yielded positive results. He also gave his views on issues ranging from Central Bank Digital Currencies (CBDCs) to Ugandan authorities’ ongoing efforts to regulate digital assets. Below is Mugenyi’s written response to Bitcoin.com News regarding a question sent to him via Whatsapp.

Bitcoin.com News (BCN): You are one of the few figures in Africa involved in crypto/blockchain education and advocacy. Can you explain why you chose to be involved in this work?

Killian Mugenyi (KM): My partner and I decided to focus on crypto/blockchain education and advocacy primarily because:

– Countless scams and Ponzi schemes have given the industry a negative reputation.

– To educate the general public about crypto and blockchain so that they can see the value and opportunities that the industry can take advantage of.

– Build the skills of those entering the market to build, develop and sustain a sustainable and long-term vision for the industry, keeping a skilled workforce informed about the dynamics of this new but highly relevant industry.

BCN: Is this work any different?

kilometer: In fact, our work is having a huge impact, and we’ve achieved a lot. We have more people joining the Academy, and more people are sharing testimonials about knowledge and success through our programs. Institutions, foundations, government entities and many other organizations are also reaching out.Many want to learn and understand how to capitalize on this misunderstood new industry opportunity [to be] Get rich quick scheme. We are also paying more attention to the online training platform we are currently revamping so that it can meet the growing demand and enable better delivery, especially during the COVID-19 pandemic.

BCN: Over the past year, it was report Uganda’s regulator, the Financial Intelligence Unit, wants the Ministry of Finance to help develop a proper crypto regulatory framework. Do you know if there is any movement on this issue?

kilometer: As far as the regulatory framework is concerned, progress has been slow as leaders are taking a cautious approach. They are looking to industry experts for better guidance, and this is where we want to step in and help draft these regulations. We also hope to assist regulators by expanding our efforts to help build transparency in crypto/blockchain regulation in Uganda. Just recently, we had some positive news that the “The Akon City” project was allocated land to start construction. This decision is encouraging and helps drive our quest for greater crypto/blockchain adoption.

BCN: On the same issue, Bitcoin.com News report The Uganda Blockchain Association has supported the country’s call for this regulatory framework. Can you tell our readers why you think it is important for the Uganda blockchain industry to establish this regulatory framework?

kilometer: The purpose of the regulatory framework is primarily to provide clarity and facilitate adoption of blockchain technology while minimizing disruption to the economy. With the right regulations and policies, we can attract investors and increase local participation in the industry, and institutional participation is sure to increase, benefiting everyone and providing opportunities to help the most educated but unemployed youth of the population.

BCN: 2021, Bank of Uganda roll out A regulatory sandbox in which a fintech startup was included at the time. Do you know if other fintechs have been added to the sandbox?

kilometer: The fintech sector in Uganda is very young and there are few established players like Nileonegroup. We are building a platform to attract international players who work with us to provide quality services to governments, institutions and individuals seeking to explore crypto/blockchain opportunities. That said, there is very little information on regulatory progress, but we are building capacity that will help expedite this work once we get government and regulators (like Uganda Bank and other African countries) on board.

BCN: Last year, the Central Bank of Nigeria launched its digital currency, e-naira, while many other central banks in Africa have expressed interest in launching their own CBDCs — or at least exploring the benefits of owning one. Is the rush to launch a CBDC a good thing for crypto in your opinion?

kilometer: CBDC has many advantages, such as simplifying the implementation of monetary policy and government functions. Many functions such as benefit distribution or tax calculation and collection could benefit from automation and increased efficiency. However, CBDCs will not solve the problem of centralization, as they will still be controlled by, for example, central banks. Having said that, I don’t think we in Africa, especially Uganda, are ready for these developments until we have the right policies and frameworks to regulate and support those trying to build the necessary infrastructure and workforce for sustainable crypto adoption Blockchain people.

BCN: Finally, despite your and others’ efforts to see cryptocurrencies used in everyday life, reports of cryptocurrency-related scams continue to dominate the headlines. What else do you think needs to be done to reduce or limit the number of investors who fall victim to high profile crypto Ponzi schemes like MTI or Pinkcoin?

kilometer: I can tell you that we have had a huge impact on our efforts to educate the masses about crypto/blockchain. More and more people are beginning to understand what cryptocurrency really is, its applications and opportunities. People are also becoming more cautious and vigilant before investing in potential Ponzi schemes and scams, and better yet, they have a trusted party, Nileone, and we offer free and easy consulting for such (scam) projects. We also help raise awareness on how to avoid (crypto scams), as these have proven to be major factors hindering adoption.

What are your thoughts on this interview? You can share your views in the comments section below.

Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.