Over the years there has been a lot of skepticism and misunderstanding about cryptocurrencies. Just when Ugandans were catching up, the Central Bank issued a press release in 2017 warning the general public about “One Coin Digital Money’ operations in Uganda. The statement warned that One Coin’s dealings in cryptocurrencies like Bitcoin fall outside the regulatory purview of the Central Bank.
Additionally, the Bank of Uganda issued a circular warning against converting cryptocurrencies into mobile money in April this year. This has not only discouraged most crypto enthusiasts but also motivated most crypto exchange platforms that had tapped into the Ugandan market to suspend operations.
However, with the increasing technological advancements, there is need to adopt digital currencies too. Here is why Ugandans should embrace crypto;
- Crypto adoption creates decent employment opportunities
Cryptocurrencies are popularly known as investment opportunities but there are more opportunities to look out for. For example, Brindon Bamwiine and Daniel Mulondo are crypto coaches that are using their teaching skills to engage and educate people about cryptocurrencies and how to invest in them through their educational institutions, Skill Haven and Nileone Academy respectively. This has been an income source for them over time.
One can also become a crypto researcher, blogger, or journalist.
- Crypto offers financial inclusion to all
With crypto, no one suffers from the constraining policies of the traditional banking system such as owning a bank account and paying an account maintenance fee.
Daily, both banked, underbanked, and unbanked citizens express the desire to have control over their finances. The decentralized finance system attempts to make such desires a dream come true. Cryptocurrency companies’ mode of operation proves that adopting crypto can grant financial access to all. Thus, they can bypass the accrued difficulties of using the traditional finance system.
- Low transaction cost
Financial transactions in and across national borders always have a price tag that varies depending on the amount you are sending. Clients have to pay transaction charges when sending money. Some internal charges can be minimal however, most cross-border transaction charges, especially remittances, are exorbitant.
The good news is that crypto transactions charge little or no fee. Wallet to Wallet transactions are mostly free of charge.
- Easy, fast, and limitless Services
Traditional banks allow clients to store their finances in Savings or Current Accounts through long processes for acquiring an account and signatures that are acquired physically. With crypto, there is a simple and fast KYC process. Crypto users can send and receive huge sums of money in their wallets from anywhere in the world with little to no interruption.
Further, one can actually easily convert the amounts received in crypto and withdraw in fiat currency.
There are various reasons why Uganda should adopt crypto. The increased depreciation of fiat currencies and inflation could be significant contributing factors as well.