Binance ready to launch its first crypto-fiat exchange in Uganda
Changpeng Zhao, better known in crypto-industry as “CZ”, president and founder of Binance, said that “the company is about to launch a crypto-fiat exchange in Uganda,” in an exclusive interview with Cointelegraph.
Binance, the world’s largest cryptocurrency exchange for negotiated value, is currently one of the largest crypto exchanges for daily trading volumes, seeing $ 789 million in negotiations in the last 24 hours, according to Coinmarketcap.
The new platform, Binance Uganda, will be the first incursion of the company in the crypto-fiat trade (supporting the Ugandan Shilling, along with larger cryptocurrencies) and it is fixed and its launch is imminent.
Zhao told Cointelegraph that the movement “shows that Binance is not only looking for more developed markets, we think that crypto has a very strong employment case in less developed countries. It can make more money in a more developed country, but we want to distribute I crypto the rest of the world. “
Noting that “Binance is interested in expanding to the African market” in general, “CZ said that the work in the Ugandan company has been” progressing really fast “, appreciates the great support of the government, regulators and the industry.
The initiative aims to open thousands of jobs in Africa, and move investors to Uganda.
“Uganda is a really interesting situation, only 11 percent of the population has bank accounts. It is both a challenge and an opportunity. Then it may be easier to adopt cryptocurrencies as a form of currency instead of trying to insist on bank adoption. This is an interesting experiment; Africa a big market, that’s why we’re there. “
Considering that this will be “the first time that Binance has touched fiat”, the exchange will have many regulatory questions to discover of knowing the client and anti money laundering (KYC / AML), stressed the CEO, before he can climb further.
Binance Uganda will be an independent structure, but with a “strong business corporation” with the existing platform. From a systems perspective, it will be a separate (but identical) installation of the existing Binance code base, with the same operations, security and system.
CZ says, appeared unfazed by the decreasing trade volumes (both Binance and other cryptointercambios) until 2018, noting that “markets always react in an exaggerated way” (both when things go well, and when things calm down), and that he has “seen this many times, five or six times in an annual cycle.”
He believes that volatility will ultimately settle when the total market capitalization of the industry increases, and suggested that the opening of more fiat channels (as in the new Ugandan firm) can help promote more growth.
To prepare for the “next hike”, Binance is improving its systems to allow more volume (100 or 1000 times more than what it currently supports). “I do not know when it’s going to happen, but we have to be ready for it.”
The company is also ready to launch in 2, 3 or more short-term locations, and continues working on a prototype for its decentralized exchange.
Zhao told Bloomberg today that Binance will also open an exchange in Jersey, in the Channel Islands, with a workforce of around 100 people; and today signed a memorandum of understanding with the authorities of that region.
The transfer of Binance to Africa could be a boost for the continent in the world of cryptocurrencies, and a helping hand for countries struggling with different difficulties.
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