By Our Reporter
According to a Stanford study on banking in Africa, over 74% of households in Uganda are unbanked. Additionally, the World Bank found that “up to 60% of adult Ugandans still keep their savings at home and in the form of assets such as animals”, a shocking statistic within the modern economy.
Indeed, Ugandans inability to have proper savings accounts, invest, or easily make remittances has created a substantial conundrum for the East-African nation. This poses a major challenge for economic growth, as Ugandan financial institutions are unable to support the financial activity that is key to creating economic growth. One solution posed by experts is the adoption of Bitcoin. The digital currency, which operates on public ledger technology known as “Blockchain”, is a transparent and open-access alternative to banks within Uganda.
As Bitcoin’s value hit an all time high Tuesday morning, it has become a perfect and valuable solution for savings compared to often declining fiat currency. Since the beginning of 2021, Bitcoin has seen a 70% price increase and reached market caps many traditional economic advisors never thought possible.
Across the continent, Africans have been choosing Bitcoin as a way to join the newest technological revolution. Recently, the up and coming cryptocurrency exchange Yellow Card has expanded to Uganda with the stated goal of bringing “financial freedom for all” to Ugandans.
Founded in 2016, it was inspired when its founders Chris Maurice and Justin Puiroux were shocked at the amount a traditional US bank was charging Africans to send money across borders.
They teamed up with Munachi Ogueke to undertake the mission of bringing Bitcoin to Africa with the objective of “basic financial services for all” and have since taken Africa by storm operating in 13 countries and planning expansions to 5 more within the month. Their focus on providing for the unbanked and underserved across the continent has inspired many Ugandans to give the service a shot.
As Yellow Card gains traction in Uganda it is expected to become synonymous with Bitcoin and cryptocurrency as it has in many other countries it operates in.
The financial platform has strong educational aspirations, looking to educate the public on the utility of Bitcoin as a financial tool available to anyone as well as providing a safe and convenient means of buying and selling of Bitcoin in Uganda. Rapid expansion has been its primary weapon in its battle to provide financial freedom for people across Africa.
It’s founder Chris Maurice addressed Ugandans unbanked by saying “Many Ugandans face the difficult challenge of not having a bank to save, invest, or easily send money with. Those who do have a bank face high fees, and often prefer to use cash anyway. Unfortunately fiat has been incredibly unstable and unreliable, and cannot be used for investing or remittances. These are all problems that are solved by Bitcoin.”
Bitcoin’s decentralized nature avoids the discriminations and pitfalls of traditional finance.
Adding on to that, its low fees and Yellow Card’s competitive rates make it an incredibly affordable option. As banks continue to struggle to adapt and grow in Uganda, it is clear that a new tactic needs to be tried.
Ugandans should abandon their efforts of chasing what is rapidly becoming a dated institution, and focus on the new wave of technological innovation found in cryptocurrency. From startups, to investments, to savings, to remittances, Bitcoin and blockchain technology can do it all. All Ugandans need to do is take this opportunity and join the party.