Bitcoin (BTC) continues to become a popular digital asset around the world despite multiple slumps in the crypto market. This resilience has attracted the attention of Ugandans who wanted to make more money through the crypto hype.
Even though the Ugandan government has taken a strong stance against BTC trading in the country, some citizens remain eager to invest in the digital currency. Take a look at how popular BTC has become in this African nation.
Bitcoin ownership
Some Ugandans have been investing in BTC since 2018 despite the government not giving licence to any business like a Bitcoin casino to sell or trade digital assets. Local finance news reports that some Ugandans have made 10 times their annual salary from their jobs just from trading BTC.
People like Richard Bagorogo started to preach to his fellow Ugandans about the advantages of buying Bitcoin. He claims that even his family have started to become interested in BTC after telling them how he makes money from it. From 2020 to 2021, the number of Ugandans investing in BTC rose by 1200% following the crypto boom in the beginning of the decade.
Why do Ugandans invest in Bitcoin?
As previously mentioned, Ugandans are enticed by investing in BTC due to the intrinsic value of the digital asset which is worth more than what they usually make in a year of employment. They also want to take advantage of the faster processing speeds when transferring BTC. Additionally, BTC is a good alternative to gold when it comes to asset propagation.
Other reasons for Ugandans to invest in BTC include greater security of assets. The lack of physical infrastructure also allows easier access to Ugandans no matter where they are. Most Ugandans are looking to other African nations who have adopted crypto and wish to be included in the growing community of coin enthusiasts.
Potential risks
BTC investors in the country continue to trade the digital currency despite warnings from the government to desist from such practices. Top officials have reiterated that the Bank of Uganda (the country’s central bank) has not granted any licence to any entity to trade BTC or any other cryptocurrency in the country.
The government insists that crypto services are avenues for cyber criminals to launder money and purchase illegal items like drugs and weapons. They also warned that crypto scams do exist, and that the people must be protected by keeping crypto services out of the country’s financial system.
Is the Ugandan government regulating BTC in the country?
In May 2022, the government reminded its citizens that businesses who facilitate the trading of crypto assets like BTC will lose their licence. Users are also asked to refrain from holding, buying, or selling cryptocurrencies as they are transgressing national payment laws. In 2020, the Financial Intelligence Authority wanted to include virtual asset service providers as one of the entities subject to monitoring.
The Bank of Uganda has introduced a regulatory sandbox framework which will allow financial technology firms to test out solutions in electronic payments in June 2021. The Blockchain Association of Uganda has welcomed this move by the country’s central bank, saying they look forward to seeing Uganda finally adopting crypto-related business models.
Some Ugandans have already made money from BTC and used it in businesses like a Bitcoin casino. However, the government is yet to approve solutions for adopting digital assets in the country’s financial system. Still, it doesn’t stop Ugandans from continuing to patronise BTC as a good asset to have. Only time will tell if Uganda will follow other countries’ footsteps when it comes to crypto adoption.
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