Cryptocurrency and its blockchain technology continue to play a pivot role in the growth of the financial system in various nations. Although some may be doubtful about the promises of cryptocurrency due to it volatile nature and anonymity, although other crypto assets and adaptions of blockchain that have proven to have potential. The evolution of Cryptocurrency has created a pattern to improve both the economic system of developing nations.
Based on research done by economists, they came to an understanding that cryptocurrencies can influence economic development in developing nations.
Cryptocurrency can improve the financial system of developing nations by creating a method which can trace down funds therefore reducing corruption in the financial sector. Government can trace how funds are spent and the various personnel whom is spending those funds. Also, authorized spenders of these funds which are allotted are given a specific timeframes of access and can only use the funds for the intended purposes. According to stats blockchain technology can eliminate what would be a 15-month corruption investigation by a single click of a button.
Needless to say, cryptocurrency improves developing countries through the reduction of corruption and promotion of transparency, the deterioration of transaction costs and time as well as the inclusion in financial access. As cryptocurrency continues to evolve and developing countries increasingly gain access to mobile phones and the Internet, the benefits of cryptocurrency cannot be overlooked.
According to the World Bank, 1.7 billion people do not have bank accounts due to the lack of documentation and other factors. Such people mostly live in developing countries where the banking system is not large enough to cater to the whole population- a factor which prompted developing countries to adopt cryptocurrency in the first place.
Again, based on the surveys done by economists, Venezuela, Zimbabwe and Iran host a prominent number of bitcoin users (an example of cryptocurrency). Some binding factors in these three countries and the reason behind their huge usage of Bitcoin include the underdevelopment of their local market and underperforming domestic currencies.
The high competition between banks and cryptocurrency, cryptocurrency offers her users what banks cannot according to Forbes, the avoidance of higher cost fees for transactions can help the middle class avoid over 90% of charges from banks. Due to the fact that cryptocurrency does not need expensive private infrastructure to function, the fees and charges common to bank accounts and mobile banking transactions are cut down.Thus, it has turned out to be affordable for people living below the breadline in developing countries.
Therefore, data shows there has been an increasing trend in the adoption and usage of crypto in such developing countries. Platforms like PayPal and boundless Pay, aim to introduce a feature that would allow its users to make payments via their cryptocurrencies, for local as well as international transactions.
One Response
I totally agree with You sir.. Like i always tell some people, its all about our mentality and willingness to learn new things.. Am sown out to learn, especially digital skills and knowledge that will put poverty on s flight.. Everyone can do so.. Opportunities are there everywhere… Just grab one and see a change