10 Reasons for Binance Labs’ Africa Crypto Commitments
August 31, Binance Labs, the blockchain incubator arm of the major cryptocurrency exchange Binance, has released 10 reasons for their Africa crypto commitments.
Benjamin Rameau, director of Binance Labs, posted an article on Medium to demonstrated 10 reasons for its Africa-focused expansion:
The most profitable investment ideas tend to be the most contrarian. Binance believes that, Africa has huge potential in financial development, as thus, Investing in Africa could be the best trade of the century.
Building a financial backbone for Africans:
The market imperfection becomes a real issue in Africa. In Sub-Saharan Africa, only 43% of people aged 15+ own a bank account versus a global average of 69%. In some areas such as South Suban the ratio is as low as 9%.
With crypto and blockchain technology, the backbone to the modernization of African economics can be formed and enable the African people to manage their finance in real time.
The decentralization character of cryptocurrencies may be more suitable for the industrial development in Africa as it eliminate the need for industrial parks.
Africa is a highly fragmented market, the cross border scalability is hard to achieve when companies rely on traditional banks. Fortunately, the decentralized autonomous organizations (DAOs) powered by tokens do not rely on banks and it may will instantly scale across borders.
Blockchain technology is open to all and it may create more industrial solutions and bring more job opportunities to Africa and make use of the underused labor pool.
Cryptocurrency can provide an inflation hedge and helps African people to protect their personal wealth.
The public service in Africa is poor which may also have a bad effect on its economic development. Blockchain may enable economic incentives to set their own governance, decision can be made by token holders.
Blockchain technology could guarantee an increase in incentives to invest, superior household welfare and better management of natural resources.
Youths contribute most of Africa’s population, and they are sharp and interested in new technologies. They are looking forward to embrace the blockchain.
A decentralized organization:
Binance Labs is a decentralized organization that targets the global market. Africa should have same rights as Asian or European in blockchain development and Binance is willing to deploy their capital there.