Binance Labs Looks To Africa As Next Big Crypto Opportunity and Market
In a recent post, a director of Binance Labs explained the ten reasons why Binance was closely looking to Africa as the next big market and opportunity in the crypto space.
The next frontier, the best trade initiatives of the century will be based in Africa. That, roughly, is the opinion of Benjamin Rameau, a director at Binance Labs.
Rameau wrote this in a Medium post he used to emphasize that the company would be looking to Africa as the next big opportunity in crypto.
He added that more often than not, the more contrarian an investment idea, the more profitable it likely is to be. There isn’t enough focus on Africa, but for those who care to take note, things are changing very fast.
That constitutes Binance Lab’s view of the African continent. According to Rameau, the entry of the company into Africa will not be about dropping manna from the skies. Rather, their target will be to help businesses and start-ups change lives on the continent and in the world.
The stance about Africa blends in well with Binance Lab’s status as a “social impact fund”, and an incubator platform for blockchain and crypto projects, entrepreneurs, and communities.
Reasons Binance Labs believes in Africa
Rameau sets out several reasons why the company trusts that Africa is, without a doubt, the surprise investment package of the 21st century.
He ends his post with an apt summary of the company’s African perspective. He says:
“In Africa, we feel very much at home and we want to deploy our capital there.”
One of the top reasons Binance Labs is looking into Africa relates to its untapped potential. He says that the blockchain and cryptocurrency may be disruptive in developed economies.
In Africa, however, the technology has the potential to create a whole new decentralized financial system, the backbone of a new wave of development.
In a continent where the banking system caters to less than half of the population, decentralized organizations and other crypto projects will thrive unrestricted. Already, most of the continent is more receptive to cryptocurrency than some of the developed economies.
Rameau also points out that blockchain will level the playing field for the continent with regard to industrialization. Fully decentralized communities will crowdsource everything, from design to engineering and manufacturing.
In a world where physical borders or a myriad of other barriers won’t stop development, tokenization will provide the incentives necessary to remove any disadvantages witnessed in the current landscape.
The extensive post also details how blockchain will be at the center of revolutionizing governance and giving communities access to better public services.
DAOs will rid communities of the dependency on political whims, freeing communities from poor governance that is to blame for the poverty among other challenges facing the continent.
Blockchain will remove the barriers brought by a fragmented continent with nearly 2000 languages. Operating a business in multiple countries in Africa at the moment faces a lot of challenges including bureaucracy.
However, with a tokenized economy, a start-up can quickly launch its operations in several countries and reap the benefits of a decentralized market.
And Rameau believes that it won’t be difficult for Africa to embrace blockchain technology.
Africa is home to a youthful population, one that is eager to work and ready to move with the revolutionary technology. With such a young population, rolling out blockchain-based projects will find wide support.
Binance recently launched a $500k incubation program that will support early-stage start-ups break through the market. Showing a similar commitment to the developing continent will surely help make it a better place.
What Binance Labs is doing is similar to efforts made by other blockchain projects. Of the most active so far has been Cardano (ADA) which has partnered with a number of African governments on the use of blockchain technology.
Recently, Bancor helped a Kenyan community utilize its blockchain for transactions. The projects are expanding into health, agriculture, and voting.
It may not be as widespread as Asia or Europe, but Africa could provide the biggest market and use for blockchain and cryptocurrency.