Binance's huge launch in Uganda shows big crypto appetite among the unbanked

With a whopping 74% of Ugandans among the "unbanked," Binance's subsidiary there saw a massive 40,000 users sign up in its first week of launch. Typically Binance only allows crypto-to-crypto trading, but the uncommon circumstances in Uganda has led to a different strategy there. Binance has partnered with a local mobile payments company to allow users to move from crypto into traditional currency and vice versa. Security concerns in Uganda have led Binnce to keep the partner's name confidential.

A significant source of household income in Uganda is remittances from family, et al. in neighboring Kenya. One in 10 Ugandan households receives money from someone in Kenya, but the high fees associated with international money transfer are a strong catalyst for seeking an alternative -- indeed, this has long been part of the pro-bitcoin argument where an easily moveable global currency solves local problems. Crypto transfers may well be a path to lower fees and has Binance's competitors also sniffing around the Ugandan market, according to Kwame Rugunda, chairman of the Uganda Blockchain Association. (Source: CoinDesk)