Binance is launching it’s first crypto-fiat exchange and it's not USD
Binance is launching its very first crypto-fiat exchange in Uganda. Binance being one of the biggest exchange platforms in the world making this move in Uganda is not so simple as it sounds. People in cryptosphere were expecting Binance to launch its first exchange in Dollar. However, not following the mainstream culture, Binance chose to launch its first crypto-fiat exchange in Ugandan Shilling.
CEO, Changpeng Zhao says that they are not focusing just on a developed market like the US. They are also focusing on developing markets like African regions, in this case, its Uganda.
“We think that crypto has a very strong use case in less developed countries… there’s more money to be made in a more developed country, but we want to distribute crypto to the rest of the world.” Said CZ to cointelegraph
It’s peculiar why CZ chose Uganda out of all the developing countries in the world. It seems like CEO has a logical explanation, this is what he has to say
“Uganda [is a] really interesting situation, only 11 percent of the population has bank accounts. It’s both a challenge and an opportunity. So, it may be easier to adopt cryptocurrency as a form of currency instead of trying to push for bank adoption. It’s an interesting experiment – Africa’s a big market, that’s why we’re there.”
Later in June, there was news about the euro pairing will be added to the platform. But the first fiat pairing turns out to be the Ugandan Shilling. It’s fair to expect more fiat pairings in the near future and USD sometime next year.
Considering the fact that Binance will be working with a fiat for the first time, it is going to be a busy schedule for the team to figure out KYC & AML questions for the new customers that the platform has. Furthermore, Binance Uganda will function as an independent structure but with a strong business alliance with the existing platform.
From the system standpoint, Binance’s code base will be a separate but identical installation. Also, the operations and the overall functioning will be similar to the existing platform. Amidst all this, CZ is super positive with the new venture making its way. He thinks the volatile nature of the markets will help expand more markets in future. The expansion will happen if the overall market cap increases.
Furthermore, with just one fiat venture Binance has already started spending time and efforts on improving the system. Just enough to support 100 to 1000 times more operations & processes that are supportable right now. Above this, the platform is all set to open a few more locations in near future.