11 Dec Ukraine Has Formed A Crypto Joint Working Group With Binance. Wouldn’t It Be Great If Our African Countries Did More of This?

The Ukraine Ministry of Digital Transformation has signed an MOU with Binance to better understand regulation and to establish a digital currency market in their country.  It is really tough for governments to come to terms with the degradation of the current fiat and accounting / record keeping system which is fast becoming legacy and how to embrace the new way of being with blockchain, smart contracts and digital currencies that is going to completely transform the way of doing things in countries and economies.

On the one hand it's how to legislate and manage this runaway train and on the other to expedite and catalyse and become  a market leader in these new technologies. The first-to-market governments who embrace this new way of being for themselves and their citizens are going to be come prosperous world leaders.  

But it’s kind of like sleeping with the enemy.  Binance for example has managed to avoid legislation wherever possible, although now having become the established world leading alternative financial institution, yet quite likeable as a result of their leader CZ being always accessible, understanding and open to sharing insights and mutually beneficial collaboration with anyone who is looking to get on board.  

He has forged relationships with heads of state like Uganda and he is even friendly with China which is the most interestingly outspoken and volatile of jurisdictions when it comes to crypto.  And even now the USA which is the most uncomfortably over-regulated, costly and confusing market for crypto venturing, and very quick to bring out the hatchet when there is a whiff of disruptive innovation or crossing-the-line.

What's inevitable is that blockchain and crypto are going to create fantastic new possibilities for governments like digital ID’s, property rights, digital cash and CBDC’s amongst many other efficiencies.  There is also the global move to decentralisation which is on the one hand a threat to their autocracy and on the other an opportunity to spin off certain functions and services to be managed more effectively by systems and people.  

A really interesting area that Binance and Ukraine government are working on is to “develop transparent and effective mechanisms for the transfer of rights to any virtual assets or currencies using blockchain technology”, most likely to include STO’s and synthetics which is very progressive.  

Governments are starting to realise the value of blockchain and crypto and some are jumping on board, not necessarily all for the good reasons that libertarians have been championing.  France is apparently looking at issuing a CBDC in 2020 and China’s Central Bank is launching the digital yuan shortly. 

South Africa has been experimenting with blockchain and digital currencies.  According to Consensys, Project Khokha created a blockchain-based interbank system that processed the typical daily volume of payments with full confidentiality and finality in record time. A permissioned blockchain network that could do interbank clearing and settlements in less than two hours.

Cardano is working on a number of projects with the Ethiopian government.  Imagine if governments like Nigeria and Kenya were to colab with progressive organisations and thought leaders like Binance and CZ, and Consensys to understand and transform their economies into world leading powerhouses that devolved decisionmaking and economic empowerment to their people in a way that enhanced financial inclusion of the people of their nation.  

Imagine the possibilities that could emerge from digital identities, the spinoffs resulting from certainty of land ownership, and digital and decentralised finance in the hands of every person who would now be able to seamlessly transact between each other and with the rest of the world, effortlessly and economically.

OK, back to the real world!  If you are a multi national eCommerce company looking to get paid by your consumers across Africa, click here to get in touch with us at African Payment Solutions. 

Our thanks for inspiration to https://www.coindesk.com/binance-to-advise-ukraine-government-on-upcoming-crypto-regulation