African mobility and logistics companies GIG Mobility (GIGM) and GIG Logistics (GIGL) are set to start accepting start cryptocurrencies as payment for services and offering other blockchain solutions on their platforms.
According to an insider source, the company will soon be integrating crypto, decentralised finance (DeFi) and other blockchain solutions into its mobile platforms for users to trade.
Recall that we hinted 2 months ago that a major African brand operating within the mobility and logistics sector may be working on a major blockchain solution that will redefine the space across Africa. The company is in collaboration with a set of international partners to develop and launch what may be the first Africa-wide decentralised blockchain-enabled project financing platform.
The source told us that extending a crypto wallet to GIGM and GIGL users aligns with the company’s mission to propel freedom of movement and other economic/ social activities leveraging technology.
“Eventually gig logistics may be able to allow users perform multiple functions like paying bills, transfer assets and money etc.”, the source noted.
Not sure what the full details are, what we know is that it will be possibly launched within the next week.
Why this matters…
If GIGM and GIGL successfully integrate and launch a crypto payment as part of their offerings, it will be maybe the first Africa-wide decentralised blockchain-enabled platform that would allow users to exchange virtual currency for actual products and services.
Although Africans hold a significant worth of cryptocurrency. According to a report released by Chainalysis, a digital analytics firm, Africans received $105.6 billion worth of cryptocurrency between July 2020 and June 2021. That represents a 1200% market growth with Nigeria, South Africa, and Tanzania ranking in the top 20 of the Global Crypto Adoption Index.
But, not many African use it for actual transactions. Owing to regulatory bottlenecks and government pressures many have resorted to Peer-to-Peer (P2P) transactions to bypass stifling regulations. A lot more others only hold it as instruments of wealth.
GIGM’s offers technology-centred mobility services across major cities in Nigeria and Ghana. GiGL facilitates seamless deliveries for Africans globally. Both platforms are strategically positioned to allow thousands of daily commuters utilize to actually transact with the value of their currencies as well as stimulate widespread adoption.
DeFi allows for a number of functionalities such as insurance, loans, crowdfunding. But, borrowing and lending are among the most common use cases for DeFi applications.
This allows users to lend out a cryptocurrency- like traditional banks- and earn interest as a lender. But there are many more increasingly complex options too, such as becoming a liquidity provider to a decentralized exchange.
This feature, we believe, indicates that GIG may be planning a big array of banking functions that will certainly extend the brand’s business coverage.
How it may work…
From all indications, it seems the project will involve the minting of a new token that will serve as the primary medium of value exchange on the companies’ mobile apps instead of adopting existing cryptocurrencies like Ethereum, Dogecoin and Bitcoin.
There are possibilities that a large number of the token will be pre-mined ahead of launch. The team may also decide to give out tokens as a reward to users to encourage adoption as many similar platforms have done.
Our source assured that the new currency will retain value and survive volatility owing to the team’s sound liquidity management system and the real-world assets that will back it up.
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