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Crypto-Currencies viewed as a short term bubble – World Economic Forum experts

Crypto-Currencies viewed as a short term bubble – World Economic Forum experts

Bitcoin’s price has increased more than 12-fold in the past four years, and the combined market of crypto-assets is now valued at more than US$500 billion.

At the World Economic Forum (WEF) which took place from January 23 to 26 in Davos Switzerland, it was reported that such valuations have caused many to think that the market is overheated.

In a report from the WEF this week, Robert Shiller, Sterling Professor of Economics, Yale University, USA said, “I tend to think of bitcoin as an interesting experiment, not a permanent feature of our lives”.

Schiller compared the market to a speculative bubble that rouses public interest. “It involves contagious stories about people making a lot of money.”

But beyond the hype of a single crypto-currency, thousands of other digital currencies have been introduced, and blockchain, the technology underlying bitcoin, carries the potential of providing decentralized, incorruptible ledger, which could be used in a variety of other contexts.

Whether or not crypto-currencies offer a widespread, scalable alternative to traditional currencies depends greatly on their efficiency of use and on how well they function as a store of value. Volatility in the bitcoin market carries risks for those who hold their savings in the market, and many prefer to see bitcoin as an asset, rather than a replacement for central-bank-created currency.

Regulators around the world have raised concern about the way in which crypto-currencies make it easy to move money anonymously. As such, they provide a useful tool for illicit activities, such as money laundering.

“I do think [crypto-currency] needs to be regulated, just like anything I would want to become mainstream should be regulated,” said Neil Rimer, General Partner and Co-Founder, Index Ventures, Switzerland. Regulation could be one way of increasing public trust in the experiment.

Not only are nations seeking to regulate the use of crypto-currency, many are also seeking to take advantage of the disruptive innovation associated with it. For example, Sweden is considering the creation of its own digital currency, an “e-krona,” which would complement traditional notes and coins, said Cecilia Skingsley, Deputy Governor of the Swedish Central Bank (Sveriges Riksbank). “Cash is going out of fashion very quickly,” she added, and digital currencies could provide consumers greater convenience and, potentially, efficiency.

Some developing nations have also seen the potential of becoming part of the crypto-currency movement. “A lot of smaller economies now – they start to think if we just make our regulation a little bit more crypto-friendly we can attract a lot of investment and a lot of talent,” said Jennifer Zhu Scott, Principal, Radian Partners, Hong Kong SAR.

The staying power and pricing of bitcoin suggest that crypto-assets will continue to have a disruptive impact on global finance, but they raise more questions than answers about what shape that disruption will take.

More than 3,000 leaders from around the world gathered at the WEF meet in a collaborative effort to shape the global, regional and industry agendas, with a commitment to improve the state of the world.


 

 

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.