Binance comes in full support for Africa; says the country needs stronger financial structure and scalability 22224
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Madhurima Roy
Sep 3, 2018 at 12:30 PM

Binance has stepped forward extending its support to Africa. The leading global exchange expects that Africa's financial structure will be refurbished by tailoring the loop holes and inducing the required elements that are meant to advance the country in a much advanced manner. Benjamin Rameau, the Director of Binance Labs, through a Medium post spelled out the ‘10 reasons why Binance Labs is fully committed to Africa’.

The financial strength and maturity of Africa lags behind a lot more when it is compared to the geographical vastness of the country. "Binance Labs itself is a kind of decentralized organization and we are think globally, not locally. In a similar vein, Africa’s geography will no longer be an impediment to economic progress," said Rameau.

Binance mentions why Africa needs to strengthen its financial structure

Highlighting the state of Africa, Rameau stated: “In Sub-Saharan Africa, only 43% of people aged 15+ own a bank account versus a global average of 69%. In some areas such as South Sudan the ratio is as low as 9%.”

Countries in Africa that need financial support, need to explore financial services for “saving, borrowing and protection”. According to Rameau, this will in turn “provide the capital to fund entrepreneurs, provide a safety net for retirement planning and provide disaster relief. Households will have fewer children and invest more per child on education when parents can pre-finance their retirements. This will form the backbone to the modernization of African econmies.”

Scalability with decentralization

Decentralization is woven to be the perfect fit everywhere on the globe, and especially for countries like the ones in Africa, where the geographical expanse is huge, yet has "highly fragmented market with 55 member to the African Union and roughly 2000 languages. What works in one part of Africa may fail in another and achieving scalability has been an impediment to industrialization and economic development.”

Decentralized autonomous organizations or DAOs are automated, decentralized and backed by tokens and will boost scalability across borders. Achieving end-to-end scalability might be difficult in the country, however it is not impossible. "Fortunately, decentralized autonomous organizations (DAOs) will be powered by tokens and will not need to rely on banks. As long as there is demand for their services, DAOs instantly scale across borders," he added.

 

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