Poverty, high unemployment levels, corruption, and inflation are some of the problems that are common to developing countries around the world. Using cryptocurrency in developing countries can change these afflictions, with solutions for a variety of issues. These countries do not possess quality potential for the future, much less a level financial playing field. If anywhere in the world needs more cost-effective financial systems it is those in developing nations.

How Cryptocurrency will Help in Developing Countries?

The emergence of blockchain technology and cryptocurrency has renewed enthusiasm about the prospects of a revival in the developing countries. Let us see the different ways in which cryptocurrency will help in developing countries:

Reduction in Remittance Cost

The immigrants send remittances back to their countries via intermediary services that charge fees to the senders. This raises the cost of the senders’ transactions. Use of Cryptocurrency will be a remedy to the pricey remittance-related charges, as the use of it slashes the cost. It also removes the trouble that often goes along with receiving the money. This is especially important to those who live in impoverished conditions and rely on these international money transfers.

Financial Inclusion

Lack of financial inclusion is a big problem in low-economy countries around the world. With cryptocurrency services, millions of unbanked people can finally get access to banking services and financial instruments. Cryptocurrency banking services have been possible through mobile phone apps. The crypto banking platforms use the reach of telecoms to take financial emancipation to the unbanked and underbanked resulting in improved financial inclusion.

Corrupt Financial Systems

The developing nations usually fall prey to corrupt governments, resulting in poverty and lack of agency for improvement. Cryptocurrency help reduce the ensuing poverty and hyperinflation of such corrupt systems. The use of cryptocurrencies, especially those built upon a smart contract protocol ensures a more transparent contract system. With records on the blockchain being public, citizens can monitor the use of state funds. Another area of interest is in the election process. The political landscape of the less developed nations is largely partisan and hardly ever neutral. With the use of Cryptocurrency and blockchain technology elections can become free and fair.

Inflation

Inflation can be catastrophic for developing countries. This is where cryptocurrency can help those people living in high inflation affected countries, or at least bring it under control. Cryptocurrency is an alternative to the nearly useless money in countries with such governments and their resulting high inflation. Crypto holders of these countries enjoy a respite from poverty. And, people who want to own crypto in developing nations usually do it by mining.

Recently, the Latin American Social media giant Taringa! recently launched stablecoins for its users. The social media platform will reward its users with points when they create popular content on the platform. Also, Venezuela has started accepting Petro cryptos giving a challenge to the fiat and cryptocurrency. It aims to empower hyperinflation-hit countries such as Argentina and Venezuela with the initiative, as using cryptocurrencies could protect them from devaluation.

These are some of the ways how using cryptocurrencies in developing countries can help them fight against inflation, financial inclusion, and other financial problems.

After Thoughts

The cryptocurrency industry has come a long way since the inception of Bitcoin in 2009. Though it was initially a payment method for those with financial inclusion it has gained ground in developing nations in the years that followed. Cryptocurrency has improved these nation’s financial situation, galvanizing the overall improvement of their lives. Now, let us see to what extent developing countries apply cryptocurrency solutions to their problems.