|Binance + Uganda = Fiat Trading
Before we dive into the explanation, here’s the ending – Binance is opening a fiat to crypto exchange in Uganda. As for how they got there:
Binance has held the title of top crypto exchange by volume for months on end. And despite the downtrodden market, Binance is the sole exchange (with fees) still processing north of $1 billion in trade volume.
Here’s the thing: None of the trading volume was done in actual fiat currency. In fact, most of the top exchanges don’t offer any fiat pairs, and there’s a drop-off between the ones that do:
- Bitfinex: $455 million
- Bithumb: $222 million
- Upbit: $154 million
Remember why few exchanges can trade USD, EUR, GBP, you name it – a bank account is required. Facing an uphill regulatory climate and strict government standards? Take a number, and thank you for visiting the DMV.
Choose Your Ocean
When positioning a product or service, two types of markets, or ‘oceans’ can be targeted: red or blue. Whereas red oceans are filled to the gills with competition, blue oceans have less blood in the water and present more opportunity for uninterrupted growth.
Uganda is a blue ocean. If you’re looking for a poster child for the unbanked, Uganda is a likely candidate – CZ noted that “only 11 percent of the population has bank accounts.” And with a March report estimating that nearly 71% of Ugandans own mobile phones, why not bring banks to citizens instead?
Looking forward: Binance is expected to launch 2 to 3 additional exchanges in the near future. While the locations are classified, we expect that other African countries are a likely target. After all, that’s where the real use cases are: banking the unbanked.