By Major international crypto exchange, Binance, announced the launch of its first official fiat-to-crypto exchange, which plans to serve some 44 million Ugandan customers and will commence trading in Uganda this week. The exchange will be called Binance Uganda and will officially start accepting deposits and withdrawals of Ugandan Shillings (UGX) on Wednesday, 17 October 2018.
Planning for Binance Uganda has been underway since the middle of this year with CEO and founder of Binance, Changpeng Zhao, announcing Binance Uganda in June 2018 despite volatile markets.
The exchange will reportedly only accept trade in Uganda’s national fiat, the Ugandan Shilling. It will presently be limited to trading only in Bitcoin (BTC) and Ethereum (ETH). Further products are planned to be added at a later stage.
The platform is set to handle 1.4 million transactions per second. For the first month, the estimated market of 44 million Ugandan customers will be exempt from trading fees. During this time the exchange will also provide 24/7 customer support services.
Government Support Despite Earlier Negativity
As the awareness of cryptocurrency and blockchain technology grows, so too does its acceptance and adoption. Despite the warning issued by the Bank of Uganda earlier this year, regarding the risks associated with cryptocurrencies, the Ugandan government has more recently shown an interest in using cryptocurrency and blockchain technology.
This can be seen in the recent announcement to create a blockchain-enabled solar energy project in Uganda through the planned partnership between government agencies and energy company CleanPath Emerging Markets Uganda (CPEM). This proposal seeks to use blockchain technology to spur a clean-energy economy, create employment and impact new economic development in Uganda.
Wala, the blockchain-powered financial services platform built on the Ethereum blockchain, has also recently launched in Uganda and is reported to be experiencing a high degree of acceptance and growth.
Uganda has already hosted a number of important blockchain conferences and the Ugandan government and financial regulators appear to be supportive of the technology. Uganda, with its young and relatively underbanked population, is therefore seen to have excellent adoption potential for cryptocurrencies and blockchain technology. As the infrastructure continues to develop, one can expect Uganda to become a leader in Africa’s developing cryptocurrency sector.
Binance Provide Positive Impact on Sustainable Economic Development
Binance is the largest international crypto exchange by 24-hour adjusted trading volume. With almost $1.8 billion in trades per day, according to CoinMarketCap. Binance CFO, Wei Zhou, stated that “we are extremely proud to officially launch our first fiat-crypto exchange in Uganda”. The company reportedly also has plans open fiat-to-crypto exchanges in Liechtenstein, Singapore and Malta.
Binance’s CFO went on to note that “this is only the first step in our efforts to use blockchain technology to support sustainable economic development in Africa”. While the Binance CFO was of the opinion that Binance Uganda will positively influence sustainable economic stability in Africa, he also pointed out that the company plans to bring “more innovations to the region”. This will reportedly include opening further fiat-to-crypto exchanges throughout Africa.
How do you think cryptocurrency exchanges will positively impact sustainable economic development in Uganda? Which African country do you think Binance will launch its next fiat-to-crypto exchange in? Give us your thoughts in the comments below.
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