Crypto News

Uganda seeks Cryptocurrency exchange support to lift its Economy

Uganda is looking at the cryptocurrency exchange to support its economic development in the country. This is also evident from the international digital currency exchange, Binance, striking an alliance with Blockchain organization, Crypto Savannah, to support the objective. Significantly, the move comes after the exchange’s plan to list almost any digital coin through a decentralized exchange in the upcoming months. Also, the exchange’s move comes in the midst of tightening of regulations around the world following the significant drop in prices.

Fourth Industrial Revolution

A tweet from Changpeng Zhao, Binance CEO, indicated that the alliance would encourage transformation in the country. This could be employment generation apart from attracting more investments to Uganda. In his tweet, Zhao said that “@binance will partner with @cryptosavannah @AggieKonde @HelenHaiyu to support Uganda’s economic transformation and youth employment through blockchain, embracing the 4th industrial revolution. We will do this by creating thousands of jobs and bringing investments to Uganda.”

Incidentally, the country is regarded as one of the poorest nations in the world, according to cointelegraph.  This was based on a GDP per capita of approximately $2,000. As far as the cryptocurrency exchange is concerned, a lot of things are moving quickly. For instance, the exchange indicated its intention to shift to Malta about three weeks ago after warning from regulators of Japan. Similarly, the exchange indicated its intention to add direct American currency trading pairs with that of digital currencies. In December last, the exchange struck an expansion of its tactical cooperation with Monaco.

One of the major reasons for Binance to select Uganda is that it is a promising spot for blockchain firms. This is especially in the field of the financial sector. Another reason is the lack of access to banking in the African continent. A big portion of the population does not have bank access. The key factor is that more than 30 million of its citizens work in foreign to send their remissions home. Therefore, people will have to depend on the technology to connect with a financial system.

The exchange is the second biggest one in the cryptocurrency segment. Binance average trading volume is approximately $2.19 billion per day. The exchange and Crypto Savannah are hoping to see mass adoption of the digital currency in the region. As a result, the national economy is likely to witness further growth in the upcoming periods.

Experimental Scheme

Recently, Ethereum cofounder Vitalik Buterin has given East-Africa based charity GiveDirectly $1 million through the decentralized payment network, OmiseGO. They wanted to export their support to an experimental scheme of offering 12,000 grants to Uganda families. Interestingly, the country is also regarded as one of the most corrupt in the world.

Therefore, the country is looking towards the blockchain technology for its exploration in every sector within the country. The African content is one of the places where the technology is gaining more traction. In fact, there is every opportunity to turn Uganda, which is a landlocked nation, as the pinnacle of digital currency trading and evangelism.

About the author

mm

Prateek Kulhari

Prateek is a business editor who writes about various topics such as technology, health and finance. At Pressly, he works along with the colourful folks that build a nation through tech startups. He is also a professional football player and video games enthusiast.