Binance Labs Releases 10 Reasons For Africa Crypto Commitments
Binance Commitment to Africa
Binance is a cryptocurrency exchange that was founded in 2017 by Changpeng Zhao. It is available to all countries with 246 trading markets. It is one of the fastest exchanges in the world.
Binance Labs defines itself as ‘a social impact fund and an initiative to invest and empower blockchain and cryptocurrency entrepreneurs, projects, and communities. Their mission is to solve the problems changing the world for the better.’
Africa as a third world continent has great potential for growth. Binance Labs can facilitate this growth hence focusing on Africa because of the following reasons:
Many Africans lack a financial backbone
In Sub-Saharan Africa, only 43% of people aged 15+ own a bank account versus a global average of 69%. Most African countries have a poor economy and most people do not open bank accounts because they do not see the need to as they earn little money and bank accounts are deemed expensive to maintain.
With Blockchain you can constantly manage your finances anytime anyway independent of local no matter how small your budget.
In the past, investing in countries with low GDP per capita proved rewarding as countries like Korea are currently global titans in terms of technology and they once were inferior to Ghana.
Cryptocurrencies are decentralized and are not subject to government regulation hence, virtual currencies are immune to government interference offering an additional layer of security. This lowers inflammation rates on the local economy which is a problem faced in Africa.
High population of youths
Youths contribute to the highest percentage of Africa’s population. Youths are sharp and interested in technological developments hence will eagerly embrace the Blockchain revolution.
Binance Labs Is A Global Initiative
Binance targets the global market and Africa should not be left out. It should also have the chance to experience Blockchain.
There are many cases concerning double property rights in Africa e.g. land rights. Binance Labs can facilitate better management of natural resources by introducing blockchain-based registries available to all.
By supporting and training young entrepreneurs innovating with blockchain to provide solutions to the society, the economy of African countries will develop.
Most economies are let down by inefficient public services. Organizations can be independent of these by participating in their own governance codes using Blockchain.
Need for scalability solutions
Africa is rich when it comes to languages, and cross border scalability is hard to achieve when companies rely on banks. Decentralized autonomous organizations (DAOs) powered by tokens and independent of banks will instantly scale across borders.