Binance, the internationally renowned cryptocurrency exchange, has unveiled an expansion of its services in Africa by introducing a new feature that allows users in Ghana, Tanzania, Uganda, and Zambia to engage in cryptocurrency transactions using their mobile money accounts.
This innovative feature, known as One Click Buy and Sell (OCBS), has been developed through a collaboration with Transfi, a company specializing in Web3 payments. It is a strategic addition to Binance’s comprehensive suite of global fiat on-ramp and off-ramp services. The OCBS feature is designed to streamline the process for users to effortlessly buy cryptocurrencies and directly sell their assets to their mobile money accounts.
Binance has emphasized its commitment to security and regulatory compliance by implementing stringent Know Your Customer (KYC) protocols and robust security measures. These initiatives are in place to protect users’ assets and personal information, aligning with the industry’s regulatory standards.
The cryptocurrency exchange platform has articulated its goal of making digital assets more accessible, particularly to the unbanked and underbanked populations across Africa. Binance’s efforts are in line with its broader mission to enhance the freedom of money on a global scale and to provide users with convenient access to the digital economy.
In a significant move in July 2024, Binance integrated the capability to trade cryptocurrencies using local African currencies such as the Ghanaian Cedi (GHS), Ugandan Shilling (UGX), Zambian Kwacha (ZMW), and Tanzanian Shilling (TZS) into its mobile app and website interface.
Binance’s strategic expansion taps into the rapidly growing mobile money sector in these African nations. For instance, as of January 2024, nearly 60% of Ghanaians aged 15 and above had a mobile money account, with projections indicating that the market could balloon to $789.5 billion by 2032. Similarly, in Tanzania, 44.6% of individuals aged 15 and above were mobile money account holders.
The impact of mobile money is also evident in Zambia, where it accounted for 56% of all retail payments in 2023, offering a boost to the informal economy by lowering the costs associated with financial services. Uganda’s mobile money landscape has also been thriving, with over 34 million registered users as of May 2022, continuing to show an upward trend year on year.
In response to the significant portion of Africa’s adult population that remained unbanked in 2021, which stood at 45%, Binance has strategically increased its footprint across the continent. The cryptocurrency exchange reported a notable 28.61% increase in crypto-to-crypto trading volumes during the period from January to April of that year. Additionally, Binance observed an impressive estimated on-chain value reception of $117.1 billion from July 2022 to June 2023, indicating a strong and growing interest in cryptocurrency within the region.
Despite the burgeoning growth, the cryptocurrency industry in Africa has faced its share of hurdles, particularly with regard to regulatory issues. For example, Nigeria, one of the continent’s largest economies, has experienced regulatory complexities that have impacted the sector. Nonetheless, research and analytics firm Statista has provided an optimistic outlook for the African cryptocurrency market. It forecasts that the market value could reach $3.1 billion by the year 2024, and the user base is projected to expand to 53.89 million by 2025.
This projection underscores the potential for cryptocurrency to play a significant role in the financial inclusion of Africa’s unbanked population, offering an alternative to traditional banking systems and potentially driving economic growth and empowerment across the continent.
