As of February 15th, the Ugandan central bank has stated that it will be maintaining its key lending rate at 7%, citing slow economic recovery. Uganda, which experienced some of Africa’s strongest COVID-19 lockdown measures, has struggled to return prime industries such as hospitality and tourism to their pre-pandemic status. As Ugandans continue to fight to control the virus, many are looking for economic relief and recovery from non-traditional sources. Eyeing its success abroad, some Ugandans have flocked to Bitcoin as an opportunity for both savings and investment.
The digital currency, which operates on public ledger technology known as “Blockchain”, is a transparent and open-access alternative to traditional government-issued fiat currency. Bitcoin’s value hit an all-time high Tuesday morning, rising past 50,000 USD (over 175 million UGX). This marks a 70% price increase since the beginning of 2021 and has been a source of economic comfort to many who are saving and trading the coin. Recently, the up-and-coming cryptocurrency exchange Yellow Card has expanded to Uganda with the stated goal of bringing “financial freedom for all” to Ugandans.
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Yellow Card, which was founded in 2016, was inspired when its founders Chris Maurice and Justin Puiroux were shocked at the amount a traditional US bank was charging Africans to send money across borders. They teamed up with Munachi Ogueke to undertake the mission of bringing Bitcoin to Africa with the objective of “basic financial services for all” and have since taken Africa by storm operating in 13 countries and planning expansions to 5 more within the month.
As Yellow Card gains traction in Uganda it is expected to become synonymous with Bitcoin within the nation. Yellow Card has strong educational ideals, hoping to educate the public on the utility of Bitcoin as a financial tool available to anyone as well as providing a safe and convenient means of buying and selling of Bitcoin. Yellow Card’s rapid growth has been its primary weapon in its battle to provide financial freedom for people across Africa.
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Yellow Card’s founder Chris Maurice buttressed this by saying that “we believe Ugandans will quickly identify the value of Bitcoin as an opportunity for savings, investments, and international transfers. It’s only a matter of time before Bitcoin is ubiquitous within Uganda.”
Bitcoin can be used by people of any background, as its decentralized nature avoids the discrimination and pitfalls of traditional finance. With Bitcoin, a young college student trader and an elderly retiree hoping to build some savings are on equal footing. This can be of great benefit to Ugandans, many of whom are unbanked and underserved by traditional finance. Experts agree that Uganda could become one the world’s foremost Bitcoin use-cases, and with Yellow Card’s recent arrival it seems that potential could finally be realized.
