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Cryptocurrencies and blockchain technologies are having a huge impact on the world and people from developing countries are recognizing their potential and are trying to adopt them.
Even though developing countries are responsible for small percentage of the crypto use in the world, their adoption in these countries showed a substantial growth during the past two years. Countries like South Africa, Kenya, Nigeria and Pakistan are leading the way in crypto adoption and many more are following. In the latest developments, Central African Republic accepted Bitcoin as a legal tender few months after El Salvador which shows the age of cryptocurrency is right around the corner for developing countries.
Why should developing countries start adopting crypto?
In some developing countries, the stability of their financial system may be questionable which makes cryptocurrency a viable solution. Recently, the collapse of the financial system in Zimbabwe made crypto a great alternative.
The lack of banking systems and hyperinflation are also among the problems that crypto can address in these countries. Such countries like Venezuela, Turkey and Lebanon are among the countries with hyperinflation so responding with cryptocurrency can have a major benefit in curving this problem.
Furthermore, businesspeople from these countries can have access to new and vast number of global clients by the use of crypto payments. People from these nations will also be able to purchase products and services from companies around the world which can have a positive impact on the living conditions of these countries.
Using cryptocurrency to send and receive money can also be ideal for immigrants around the world. The high cost of sending money back home when using financial service providers can be eradicated with the use of crypto.
Reducing corruption is one of the issue that crypto and blockchain technology can resolve in these countries. By distributing power among the many, this new technology can have an immense impact in combating corruption. Making people in charge of their own money can also be another thing to consider because there are countries with a lack of trust between the people and the banking system.
Lastly, investing in crypto has become a major source of income in the developed world and this too can be a key benefit in the developing nations. Unemployment is a huge factor that is affecting the developing countries so using crypto as a source of income can become lucrative for investors.
What is prohibiting crypto from adoption?
The lack of knowledge regarding cryptocurrency is the biggest problem for the adoption of crypto in the developing nations. Even though cryptocurrencies like Bitcoin has been around for some time now, huge portion of citizens in these countries haven't heard of them.
Another problem is that governments of these countries are slow when addressing cryptocurrency, therefore, there are huge gaps in regulations and laws with regards to crypto.
Scammers and fraudsters are also one of the reasons why people from these countries are staying away from crypto. Although this is an issue that is affecting the rest of the world, the lack of regulations and knowledge made it easy for scammers and fraudsters to take advantage of these people.
Conclusion
Crypto adoption in the developing world is taking big strides and can help people by allowing them to be part of the global economy, solving banking issues and becoming source of new innovative ideas. The untapped potential of cryptocurrency and blockchain technology can really influence their growth as a nation and as individuals.
Although adoption of crypto in developing nations is showing great progress, without a comprehensive understanding about the technology and laws and regulations regarding their use, there won't be a vast adoption.
Please share your comments and experiences regarding the adoption of crypto in developing countries, I would really love to hear from you.
Disclaimer
I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion and it should be considered as such.
