Binance has Introduced Mobile Money Crpto Trading in Ghana, Uganda, and Zambia
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Loading... - Simon Akello
- 08 Oct 2024
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Binance, the world’s largest cryptocurrency exchange, has launched a Mobile Money Crypto Trading service in several African nations, including Ghana, Uganda, Zambia, and Tanzania. This service, called One Click Buy and Sell, allows users to buy and sell cryptocurrencies through their mobile money accounts, aiming to broaden access to digital assets across the continent.
Here are the key aspects of Binance's rollout:
Mobile Money Integration
The One Click Buy and Sell service enables Binance users in these countries to trade cryptocurrencies using local currencies, including the Ghanaian Cedi (GHS), Ugandan Shilling (UGX), Zambian Kwacha (ZMW), and Tanzanian Shilling (TZS). This integration of mobile money with crypto trading removes the need for internet access, offering a more accessible way for users to engage in the crypto market.
Significance in Africa
Africa is home to a large unbanked population, and mobile money services have become a vital financial tool for millions. The adoption of mobile money has been substantial across these countries:
- In Ghana, 59.7% of individuals aged 15 and older had a mobile money account by January 2024, with the market projected to reach $789.5 billion by 2032.
- In Zambia, mobile money facilitated 56% of all retail payments by 2023, greatly benefiting the informal economy by reducing transaction costs.
- Uganda saw over 34 million registered mobile money users by May 2022.
- In Tanzania, 44.6% of adults held mobile money accounts as of 2024.
Financial Inclusion
This move by Binance is intended to enhance financial inclusion by tapping into the existing mobile money infrastructure. With a large percentage of Africans lacking access to traditional banking services, mobile money has become essential for facilitating transactions, particularly in rural and underserved communities. Binance’s new service seeks to capitalize on this and make crypto trading more accessible to users who previously faced barriers due to a lack of internet or banking services.
Growing African Crypto Market
Africa's cryptocurrency market has been steadily expanding:
- Binance reported a 28.61% increase in crypto-to-crypto trading volumes between January and April 2021.
- The on-chain value received in Africa between July 2022 and June 2023 reached $117.1 billion.
- Despite regulatory challenges, the African cryptocurrency market is forecasted to hit $3.1 billion in 2024, with 53.89 million users expected by 2025.
Challenges and Opportunities
While Binance is facing regulatory scrutiny in certain African countries, such as Nigeria, this expansion into the mobile money space across other regions highlights the platform’s commitment to reaching Africa’s vast unbanked population. By leveraging mobile money, Binance hopes to drive more engagement in cryptocurrency trading, particularly in the informal economies where mobile financial services are dominant.
This initiative is part of a broader effort to position Binance as a leader in driving digital financial inclusion and expanding access to cryptocurrencies across emerging markets.
