Simon Dingle: Building the Future of Finance with ZARP, South Africa's Rand Stablecoin

Simon Dingle: Pioneering Stablecoins and the Future of Finance in South Africa

Simon Dingle, a fintech entrepreneur, author, and tech commentator, is a prominent figure driving innovation in South Africa's financial landscape. With a rich background spanning media, broadcasting, and product development for major fintech players, Simon is now channeling his expertise into Inves Capital, a venture focused on financial inclusion and economic liberty through blockchain technology. His latest venture, ZARP, a stablecoin pegged to the South African Rand, is set to redefine how money works in the region.

Sri Misra, Founder of aarna protocol recently had the chance to sit down with Simon for an in-depth conversation on the alpha un# podcast. Want the full deep dive? Listen here! unhashed.co/simon

From Media Maverick to Fintech Innovator

Simon's career didn't start in finance, but in media. He worked in radio and wrote for magazines and newspapers, developing a keen understanding of the tech world. His journey into crypto began serendipitously in 2010 when a friend mentioned the Bitcoin white paper. Intrigued, Simon researched it, although admitting he didn't fully grasp it initially.

A request from a magazine editor to write about Bitcoin in early 2011 forced a deeper dive. This article became a cover story for South Africa's leading financial weekly and gained traction in early Bitcoin communities, marking a pivotal moment in his career.

"It wasn't called peer-to-peer digital gold. It was peer-to-peer digital cash... It was designed to be used as a monetary instrument, as money, as currency." 

This experience catalyzed a shift into fintech product development. Simon played key product lead roles in the launch teams for successful ventures like 22seven (acquired by Old Mutual), Luno (formerly BitX, a major crypto exchange), and Curve in the UK. This hands-on experience building user-centric financial products laid the groundwork for his future ventures. He also authored two influential books, "In Math We Trust" and "Beyond Bitcoin," exploring blockchain's transformative power.

Inves Capital: Building the Future of Finance

In 2016, Simon founded Inves Capital. The company operates at the forefront of fintech, focusing on enabling digital asset exchanges, developing innovative financial apps, supporting the blockchain ecosystem, and crucially, investing in projects that promote financial inclusion and economic liberation.

"We enable digital asset exchanges and payment providers, support the blockchain ecosystem, develop apps that redefine the user experience for money, and invest in projects that promote financial inclusion and economic liberation." 

Inves Capital has two main divisions currently:

1. Venox: An asset management platform offering actively managed crypto investment portfolios tailored for high-net-worth individuals and family offices. Venox focuses on secure custody, strategic diversification, and cost efficiency.

2. ZARP: The South African Rand stablecoin project, which is Simon's primary focus.

ZARP: Giving the Rand Superpowers

The genesis of ZARP stemmed from a practical need identified while exploring DeFi activities – the lack of a reliable Rand stablecoin. Simon and his team decided to address this gap, leading to the creation of ZARP.

Why a Rand Stablecoin?

Simon believes that as crypto is here to stay and everything will eventually be tokenized, every fiat currency needs representation on-chain. Stablecoins, he argues, are the best way to achieve this, offering the benefits of crypto (speed, efficiency, programmability, inclusivity) without the price volatility.

"Everything will be tokenized in time... every single currency in the world needs to have representation on chain. And we think stable coins are the best way to achieve that." 

While USD stablecoins dominate, driven by global demand for dollars and use cases like remittances, Simon highlights the need for local stablecoins. For DeFi participants in emerging markets, denominating debt in a local stablecoin like ZARP is much sounder than using a dollar-backed one.

ZARP's Structure and Trust:

ZARP is designed for stability and efficiency, enabling 24/7 transactions and value storage. Key features establishing trust include:

• Full Collateralization: ZARP is fully backed by Rand cash equivalents held in reserve. It is currently over-collateralized.

• Treasury Management: Reserves are managed by Old Mutual Wealth, a major African asset manager, similar to Circle's arrangement with BlackRock for USDC. This brings institutional credibility.

• Audits & Attestations: Regular attestations are performed by Kempen Audit, and the smart contract has been audited by Solidity Finance.

• Regulatory Engagement: While specific stablecoin regulation is pending in South Africa, Inves Capital is engaged with regulators within the country's crypto-friendly framework.

Adoption and Availability:

While still in the early stages of adoption, ZARP is gaining traction, particularly in arbitrage trading. At its peak, ZARP had approximately $3.6 million (67 million ZAR) in circulation.

Users can acquire ZARP through:

• Centralized Exchanges: Several exchanges list ZARP for fiat on/off-ramping or trading against other crypto assets.

• Decentralized Exchanges (DEXs): Liquidity pools exist on platforms like Uniswap (across Ethereum, Base, Polygon) and within the Solana ecosystem via aggregators like Jupiter.

• Institutional Issuance: Direct issuance is handled through institutional partners, not retail.

The Vision for ZARP:

Simon envisions ZARP as a crucial tool for representing Rand value in DeFi and beyond.

"Giving the Rand superpowers, upgrading it for the world of programmable money." 

Future plans involve expanding ZARP across more blockchain networks based on community input, enhancing its accessibility and utility in the global digital economy.

The Future is On-Chain

Simon remains incredibly bullish on crypto's future, despite market volatility and challenges like hacks. He sees the technology as a fundamental force multiplier that will eventually displace legacy financial systems due to its efficiency, programmability, and inclusivity.

He emphasizes the resilience of the crypto space, noting how it consistently recovers stronger after major setbacks. The move towards clearer regulation, particularly in the US, further solidifies crypto's position as an industry set to mature and unlock immense value.

From his early days exploring Bitcoin to launching ZARP, Simon Dingle's journey exemplifies a deep commitment to leveraging technology for financial empowerment. Through Inves Capital and ZARP, he is not just building a stablecoin; he is actively constructing a more accessible and efficient financial future for South Africa and potentially beyond.