The international cyber-currency trading venue Binance is getting ready for the set off of its crypto-fiat “subsidiary” in Uganda. Changpeng Zhao, the top exec of the company, has unveiled the news this week, and he explains the move by the intense use of cryptos in the developing world.
Binance to Work in Uganda, a Country Where Only 11% of People Have Banks Accounts
On June 28, the CEO of Binance Changpeng Zhao, who is often referred to as ‘CZ,’ proclaimed that the company is set to launch a bourse, which will help people swap cyber assets into public currencies and vice versa, Cointelegraph reports. The venue is expected to support the local currency – Ugandan Shilling, and it is a hurdle for Binance as only 11% of the country’s community has bank accounts.
When explaining the move, Zhao said Binance is not merely looking for possibilities in developed markets. Sure enough, the latter is of enormous prevalence among Binance's rivals as such countries bring considerable revenues. However, CZ thinks. Binance has to work on the fair distribution and let developing countries get their piece of the pie. That’s why this exchange is to start its work in Uganda.
However, CZ said Binance is interested in Africa as a market as a whole, but because Ugandan gov’t and regulators seem to be supportive in terms of cryptos, it was easy for the company to work speedily in this country on the bourse. In addition, Zhao said that the fact that in Uganda only a small percentage of people is exposed to bank services makes the launch of a crypto-venue there both a difficulty and a chance for growth. So it might even be simpler to start adopting virtual money in Uganda instead of trying to boost the use of bank services.
First Time Binance Touches Fiat
What’s interesting about Binance Uganda is that it’s going to be the first time when the company deals with public currency. However, before it moves forward, it will have to find a solution to money-laundering and figure out “know-your-customer” questions.
According to the words of CZ, Bitcoin is not going to be what is believed to be a real subsidiary but rather an independent structure. At the same time, it will be involved in active managing collaboration with Binance itself.
When it comes to the issues of the system, Binance Uganda will be a distinct, though selfsame, embodiment of Binance’s current code base. It will have identical with Binance safety, procedures and the system overall.
Binance’s Current State
Despite the fact in 2018 trade volumes has been falling both on Binance and other crypto-bourses, Zhao remains bullish. He believes there is nothing special but just markets “overreacting,” what is normal, in his point of view. CZ says he has seen such volatile circles lots of times, so it is normal for things to heat up and then cool down – 5-6 times per year.
CZ thinks that once the total market cap of the crypto-niche increases, only that unsteadiness will settle. Also, he believes that opening more fiat exchanges can trigger the growth – that is why Binance is entering Uganda on special conditions.
Binance is actually preparing for the next cryptoboom, so it’s enhancing its system to permit higher volume – 100 or 1000 times more massive than currently. Moreover, the trading platform plans to set off in two or even three more locations soon. And it keeps working on the model of its decentralized venue.
At the moment, Binance is considered the largest cyber money trading venue in terms of daily trade volumes. As of writing, it sees $789 million in trades in a single day.