Bay entrepreneur unlocks Bitcoin potential
ChainEX allows users to pay for goods, services from crypto wallet
A Nelson Mandela Bay entrepreneur has done it again, this time by unlocking the full potential of Bitcoin by enabling residents to use it for purchasing goods and services.
Henco Vorstman, 28, said his business ChainEX now allowed users to pay for goods and services such as haircuts, meals, groceries and car washes using Bitcoin.
Pinelands resident Vorstman made headlines in 2023 when Jeffreys Bay-based ChainEX went global.
ChainEX is a marketplace where investors can buy and sell cryptocurrencies they believe will hold and increase in value in the short or long term.
Now the company, which the SA Reserve Bank identified as one of the top five players in the crypto industry in SA in 2022, has once again been praised for allowing users to pay for goods or services directly from their crypto wallets.
Customers can use this feature for a wide range of purchases, from haircuts to meals and coffee.
“As of now, only a handful of shops are accepting crypto as payment,” Vorstman said.
“It’s difficult and expensive to set up on a large scale. Our product allows any shop interested in receiving Bitcoin payments to do so easily.”
In Gqeberha, Vorstman said, shops like Shag High Voltage Hair and D’Fonte Bottled Water already accepted Bitcoin through the ChainEX app.
Similarly, in Jeffreys Bay, venues like First Light Coffee Bar and Brewhaha restaurant are accepting the same payment method.
Across SA, there are about 87 places where Bitcoin is accepted, ranging from coffee shops to car washes, bookstores, lodges, bed and breakfasts,
doctors’ offices, wellness clinics and more, excluding Pick n Pay.
“Our product allows almost any business to accept Bitcoin through the lightning network, so there will be many more
places in the coming weeks and months,” Vorstman said.
Vorstman said the payment process was quite simple.
“The customer tells the cashier they want to pay with Bitcoin,” he said.
“The cashier uses their Bitcoin wallet or app to create an invoice for the exact amount of Bitcoin owed.
“The customer scans the QR code with their wallet or app scanner, then confirms the transaction. The payment is settled instantly and the transaction is finished.”
He said the app made it easy as it converted the Bitcoin to rand automatically.
“Merchants enter the rand amount of the transaction and the app will automatically display the Bitcoin amount for the transaction, so no need for calculations at the till,” Vorstman said.
“The product has launched and is now fully functional. Anyone who wanted to use it can do so right now.
“It is active on our website as well as on our app.
“We have spent the last few months integrating our system and apps with the lightning network, and in doing so we have not only allowed users to pay with Bitcoin lightning but also for users to receive Bitcoin via the lightning network.”
Nelson Mandela Bay’s political head for economic development, Shuling Lindoor, lauded Vorstman’s new concept.
“I am the champion of supporting local, whether it be in business, sports or arts,” she said.
“We can only achieve greatness if our own believes in us.
“Henco will achieve greatness ... not only because [he is] empowering himself but because he is sharing his knowledge and skills with everyone.
“I am a firm believer in empowering the nation.”
She said Vorstman’s future looked bright.
“At his age, being this enthusiastic about his purpose just shows he is destined for greatness.
“Now that you can use your Bitcoin to do the basics, I think financial freedom for many investors is on the horizon.
“I believe the more money you can save the better.”
Tech research company World Wide Worx’s Arthur Goldstuck said though the product seemed to be convenient, there was a downside to it too.
“For merchants using this product to accept Bitcoin payments, the advantage lies in the instantaneous nature of transactions, enabling them to see the money in rand value immediately,” he said.
“However, the major drawback is for consumers, who can end up paying much more than the actual cost of the product due to Bitcoin’s high volatility.
“While Bitcoin is often used for investments and has tripled in value over the past year, the price has been fluctuating by more than 10% up and 10% down over the past few weeks.”
He said using it for shopping was not advisable as it risked using what had become an investment tool as a transactional tool.
“If you are using Bitcoin that you bought at a much lower price, you will also be taxed on the difference when you spend it, with Sars treating it as capital gains.
“Bitcoin transactions are also not reversible due to this volatility, so mechanisms have to be put in place to protect the parties in a transaction.”