What you should know about cryptocurrencies

Some governments, such as China, have raised a red flag blocking cryptocurrency trade.

China cites concerns about illegal activities, disruption of financial stability, capital outflows, and illicit activities such as money laundering and tax evasion, which the country's administration says would alter the country's economic ambitions.

There's also a concern that third-world countries, including Uganda, would jump onto the ship keeping a blind eye on the negative outcome.

 The country manager of Yellowcard Uganda, Abel Namureba, says that to avoid adverse outcomes or find a better way to deal with them, Uganda should consider the potential benefits and risks of embracing cryptocurrencies before deciding to get soaked in deeply.

 "It's important to evaluate the potential impact of cryptocurrencies on financial stability, consumer protection, and economic growth. The Government should also assess the regulatory and supervisory frameworks needed to ensure cryptocurrency's safe and responsible use. We have also seen countries like El Salvador and the Central African Republic declare bitcoin as a legal tender," he says.

He adds: "Much as China has banned cryptocurrencies, it has at one point expressed interest in developing its own central bank digital currency (CBDC) to enhance financial inclusion, reduce costs, and increase financial transparency."

Embracing Crypto

The number of cryptocurrency companies in Uganda is enough to tell anyone that the idea has been warmly received. They are over ten offering Ugandans the service of buying and selling Crypto, which in some cases may seem complicated to some. 

Yellow Card Uganda, for instance, offers guidelines on what one can or not do when they want to sell and buy Crypto.

A visit to the company website lands you on a page with guidelines on a step-by-step process on how one can own a bitcoin in Uganda.

The Yellow Card Marketing Manager, James Kanyesigye, says embracing cryptocurrencies will foster economic growth and inclusion in Uganda.

 "Cryptocurrencies can help facilitate cross-border transactions. This is because they can reduce the friction and costs associated with international payments, making it easier for businesses and individuals to transact globally. This can promote international trade and investment and contribute to the growth of the Ugandans economy," he said.

Kanyesigye added: "Cryptocurrencies and blockchain technology can create new investment opportunities and attract capital to innovative projects. This can stimulate economic growth and create jobs in industries related to blockchain development and cryptocurrency adoption."

According to him, other ways Crypto can foster economic growth include driving innovation and enabling financial inclusion, especially for people left out in the country's banking system.

James shared these insights at a recent customer engagement event attended by media practitioners and crypto traders and hosted by Yellowcard in the presence of Jason Marshall, the Yellowcard global COO and the head of product, Ogo Umeokafor, at the Yellowcard offices in Nakasero.

What's your take on crypto today?

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