Cryptocurrency, Beyond the Main Functions of Currency

Ask 100 bullets! Does cryptocurrency fulfill the functions of conventional money? Carine Dikambi is cash: “bitcoin performs the functions of money, similar to gold”. The regional business leader of Binance, a cryptocurrency exchange platform, sees the deflationary nature of this asset as proof. This is why, she explains, “citizens in countries with unstable fiat currencies are increasingly using it as a store of value.” decryption.

AFRIMAG: Cryptocurrency is gaining ground in Africa. What does Binance offer to support monetary authorities and users to familiarize themselves with this new blockchain ecosystem?

Carine Dikambi: One of the main ways we help people learn about the blockchain ecosystem is through our education initiatives, where we provide the knowledge and resources beginners need to thrive and avoid scams. † To date, we have trained more than 540,000 Africans through our Binance Masterclass series of courses and we continue to expand this program. We currently host a face-to-face Crypto Academy in 4 West African countries on a weekly basis. We also regularly organize hackathons and bootcamps where people get the chance to work on real-time projects and solve real-world problems.

For regulators and authorities, we are always ready to cooperate and provide more information about operations in this space. We also released the 10 Basic Rights of Cryptocurrency Users to provide a foundation for responsible innovation while ensuring a healthy path for future growth and mass adoption.

You seem to pay a lot of attention to the educational aspect of introducing newbies to this new medium of exchange. What exactly does your plan consist of?

Yes, we pay a lot of attention to blockchain education because we believe it is the foundation for mass adoption of blockchain and allows more people to participate effectively in the global financial accessibility that crypto offers, while ensuring that they stay safe and stay away from scams.

Binance is the main bitcoin exchange. In concrete terms, how can this platform be an opportunity for weakly financialized African economies?

As a platform, Binance is of great value to African economies. Primarily, cryptocurrencies are innovating the way Africans make payments, be it wire transfers, cross-border transfers, settlements, etc. Today’s traditional banking services can be limited in terms of transaction times, fees, and difficulty in currency exchange. Cryptocurrencies simplify all of this, and the Binance platform is a great way to transact in cryptocurrencies, enabling people to make payments in a fraction of the time.

Carine Dikambi

There are also many other use cases such as using cryptocurrencies as a store of value, as a hedge against currency devaluation, i.e. using stablecoins as a means of savings and holding coins such as bitcoin as an investment. This can all be done through the Binance platform.

Bitcoin does not perform the main functions of money. How will monetary authorities, especially central banks, be able to deal with this default or default?

Bitcoin performs the functions of money, similar to gold. First of all, it is a medium of exchange and is used by people all over the world to exchange values. Mainly because it is a global medium of exchange, unlike many fiat currencies that are only accepted in their country/region. Bitcoin also serves as a store of value. While it can be somewhat volatile in the short term, due to its utility and limited supply, bitcoin generally holds its value. It also possesses the great qualities of silver, such as divisibility and portability.

Are cryptocurrencies a remedy for the inflationary pressures being witnessed by certain African economies, not least as is often the case in Nigeria or Egypt?

Yes, crypto can be a cure for inflation. Bitcoin is essentially a deflationary asset, which is why citizens of countries with unstable fiat currencies are increasingly using it as a store of value to protect against hyperinflation and rising costs of goods and services. In addition, the supply of bitcoins will never exceed 21 million, making it an attractive and inflation-proof store of value. Citizens of these hyperinflationary economies often have to deal with volatile fiat currencies. Stablecoins are a great alternative as more and more companies are starting to accept cryptocurrencies as a means of payment.

Why can cryptocurrency be an opportunity for our economies?

Crypto and the broader blockchain industry are having such an impact on our economies – through greater financial accessibility, creating opportunities for young people and providing alternative sources of income. They also enable greater participation of Africans in the global arena through themes such as NFTs, GameFi and more!

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