Today we saw announcements from multiple well established companies expanding the crypto-world. Both Binance, and Line released statements detailing their new endeavours.
With much of the world being unbanked, it is no wonder exchanges are viewing this as an opportunity to tap into untouched capital. Blockchain and its inherent qualities give access to a store of value for those who remain unbanked. With many countries currently plagued by inflation epidemics, access to cryptocurrencies will bring stability to finances. This is a situation currently evident in Zimbabwe and Venezuela. Although Uganda does not suffer from inflation to the extent that these other nations have, they have had serious issues in previous decades. These issues are close enough in memory that cryptocurrencies are sure to appeal. Recognizing this, Binance announced that they would be opening their first crypto-fiat exchange in Uganda. To date, only 11% of Ugandans have access to modern banking. With this being the case, the creation of a crypto-fiat exchange might just be easier there, than in first world nations. In Uganda, Binance will not be competing with big banks for the attention of the potential customers. Binance Uganda is only the first in a line of new crypto-fiat exchanges that Binance has planned for the near future. CEO Changpeng Zhao has stated that this is simply a part of their plan to accommodate anticipate growth in the years to come.
In addition to the announcement seen by Binance, we saw Line put out a press release stating their intention to open a cryptocurrency exchange this coming July. This exchange will focus on an initial 30 pairs, with no fiat offerings. They have stated that the 30 pairs –which have yet to be fully announced – underwent a rigorous screening process for selection. This is a very intriguing exchange because Line is an already established company operating within Japan. Currently the company is one of Japans top messaging apps, and has over 200 million active monthly users. This makes them the 8th largest messaging platform worldwide. The planned exchange is to be named BitBox, and will be open to users globally excluding the US, and Japan. Although their home country is currently excluded, this shouldn’t be the case forever, as the company applied for an operating licence months ago. This application filed with the Japanese Financial Services Agency should eventually be approved. This endeavour falls under the new branch of Line created in January, called ‘Line Financial Corporation’. At the time of that announcement, they had stated their intention to open an exchange, and have stayed true to their word. With Line having extended its reach into many industries including music, transportation, etcetera, it wouldn’t be a stretch to imagine them accepting cryptocurrencies as form of payment for their other services in the future.
It is nice to see both of these established companies continuing to pour resources into developing a foundation for growth in the cryptocurrency industry. Binance CEO Changpeng Zhao stated that they are building their own system to allow for growth of up to 1000 times its current state. Both of the companies obviously have a bullish stance on the future of crypto. By creating services such as this, they are aiding in making that future come true.