Blockchain in Mauritius - The Crypto Island of Africa
Jul 14, 2024
Key Insights
- Mauritius has established itself as a crypto hub in Africa by implementing a Regulatory Sandbox License and the Virtual Asset and Initial Token Offering Services Act.
- Initiatives like the Blockchain-focused Accelerator for Africa and government-backed scholarships in blockchain and AI demonstrate Mauritius’ commitment to fostering blockchain innovation and attracting investment to boost economic growth.
- The adoption of blockchain technology in government services, such as a digital ID system and eVerify service, highlights Mauritius’ proactive approach to integrating blockchain into public services.
Primer
Barely the size of London, is a small city island but a giant driving the pan-African spirit of blockchain in Mauritius and across Africa.
Mauritius ranks 4th in cryptocurrency received in sub-Saharan Africa, trailing only three of Africa’s big five: South Africa, Nigeria, and Kenya.
How did a small country like Mauritius position itself as Africa’s crypto hub?
To begin with, the blockchain sector has benefitted from a spillover effect created by existing enablers.
According to the World Bank’s 2017 “Doing Business” survey,” Mauritius ranks 49th out of 190 countries worldwide, boasting a robust business and governance environment.
By 2021, it had 67.6% internet penetration- a key attraction for technology investors.
Not to mention that it is a tax haven with low corporate tax rates.
As a result, it’s become a popular destination for fintech firms and a gateway into the African market.
Crypto Policy in Mauritius
In its pursuit of blockchain greatness, it developed a Regulatory Sandbox License (RSL) in 2016. This sandbox is open to innovators in financial, medical, and communications technology. They can begin operations for up to 30 days without a formal license.
In support, Mauritius has introduced the Virtual Asset and Initial Token Offering Services Act in 2021. Its visionary regulatory approach aims to regulate digital assets effectively to encompass activities associated with initial token offerings and virtual assets. Modeled to emulate international standards, it is dynamic and risk-centered. Starting by addressing definitional issues for virtual asset service providers (VASP) and delegating a specific body (the Financial Service Commission) to implement the law.
Blockchain-Ready
The significant anticipation surrounding this pro-blockchain environment has turned Mauritius into a hub of activity.
In 2023, CV VC collaborated with Mauritius to launch a Blockchain-focused Accelerator for Africa to invest in 100 African startups from Africa in the next four years. The partnership has created a fund to allow third parties to invest in blockchain opportunities in Africa so long as they operate in the country. This is part of its broader Blockchain strategy that aims to make it a fintech hub. Blockchain is expected to open new investment opportunities to boost economic growth and foster government-private partnerships. The focus is on (Non-Fungible Token) NFTs, tokenization, and integration of Decentralized Finance (DeFi) in traditional financial tools and processes.
As an aspiring blockchain leader, the government acknowledges the market gaps stemming from its ambitious blockchain frameworks and has implemented effective solutions to address them. Mauritius’ Digital Strategy 2030 strives to address skills mismatches and divisions related to emerging technologies. In this regard, it has a program for upskilling youth via 50 blockchain and artificial intelligence (AI) scholarships. Through capacity building in an ever-changing sector, Mauritius is preparing its talent pool to meet labor market needs.
Low Hanging Fruits
Have Mauritius’s blockchain efforts borne fruit?
The country is currently home to many startups, including deVere Crypto, ImpulSeven, Coin Calculator, Bitcoin Evolution, and BEX Mauritius Block Exchange.
Mauritius will host the famous Cryptoverse Summit on May 15, 2024. This Summit will be a watershed moment for global and local cryptocurrency and blockchain industry players. You’ll gain insight from a series of speeches and panel discussions to explore the most recent breakthroughs, legislative advances, and future trends in the cryptocurrency field.
While many governments struggle to integrate blockchain into their governance systems, Mauritius is already a step ahead. To enhance government services, the administration is considering using blockchain technology for a digital ID system. Getting right down to business, it has launched a blockchain-based eVerify service. The service employs blockchain technology to verify and validate information or transactions electronically. Its applicability extends to various sectors, including education, healthcare, supply chain, and legal and regulatory.
Besides, Mauritius’ capital city, Port Louis, has a Coinhub Bitcoin ATM. The ATM allows Automated Clearing House (ACH) transfers and buy/sell options for Bitcoin. So, whenever you’re within the city, you can access this critical Bitcoin infrastructure for instant and convenient purchasing options.
Beautiful and Affordable
Mauritius has a low cost of living index, standing at 33.1. As a digital nomad or tourist, you will enjoy affordable prices on restaurant food, basic commodities, transportation, and rent.
To top it off, you’ll be amazed by the variety of beaches that offer a range of outdoor activities, including boat tours, scuba and snorkeling, speed boat tours, dolphin and whale watching, fishing charters & tours, swimming with dolphins, hiking and camping excursions, and parasailing and paragliding. Some popular beaches include Ile aux Cerfs, Mont Choisy Beach, Le Morne Beach, Pereybere Beach, Tamarin Bay, Blue Bay Beach, Ile Plate Beach, and Belle Mare Beach. These beaches offer beautiful views, long walks, and a beautiful ambiance to make your next crypto move.
From crypto ventures to fishing, things can change rapidly on this crypto island. Entrepreneurs, investors, and tech enthusiasts from around the globe are increasingly looking to Mauritius as the ideal launchpad for their crypto-related endeavors.
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