The popularity of blockchain technology and cryptocurrencies (or digital currencies) are continuing to rise even if it has experienced some bumps along the way. Many are still reluctant about embracing Bitcoin and other digital currencies because of its anonymity and volatile market value.

The continuous technological advancement of digital currencies presents a model that can potentially help developing countries both politically and economically. Cryptocurrencies possess the ability to solve issues unique to these countries, by improving access to financial services and grow the economy by promoting transparency and reducing corruption. It can also lessen transaction time and costs while allowing for greater microfinancing and financial inclusion.

Comprehensive Financial Inclusion

One of the most significant factors that contribute to a person’s quality of life is financial inclusion. If there is a lack of financial opportunities available, there will be less opportunity for them to improve their livelihoods. Some developing countries are plagued with this problem, as citizens often find themselves unbanked or underbanked with nowhere to store, grow and distribute whatever funds they have.

There are barriers to entry that come with accessing banking services in these nations, such as location restrictions, banks imposing a higher minimum balance to open an account, and more requirements, which affects one’s ability to apply for traditional forms of credit and access other financial services.

Other barriers to entry include a shortage of physical infrastructure and higher bank fees, particularly for mobile banking. Blockchain technology offers a means to reduce the barriers to access and compliment existing financial services.

Cryptocurrencies are based on cryptographic software that runs on interconnected servers (nodes) and does not require physical infrastructure in any specific location close to the consumer. Cryptocurrencies are available to anyone at any time via software and a connection to the internet. Unlike banks, cryptocurrencies can be accessed and transacted any time of the day or night. The lack of localised physical infrastructure required for cryptocurrencies is a major benefit to developing nations, as it can supply them with greater financial inclusion, which is a major factor in reducing poverty.

Cryptocurrencies such as MYUBI can be accessed through a software wallet using a mobile device or desktop computer and doesn't require users to open a bank account. These individuals can use cryptocurrencies as an alternative means to meet their financial needs when they're having difficulties gaining access to traditional means of credit, banking services or even cash.

Reduce Transaction Time And Costs

Time and money are two of today's most valuable assets people can have. Cryptocurrencies may help improve the livelihoods of foreign workers from developing countries by reducing the costs of remittances.

The marketplace of global remittance is mainly comprised of immigrants in developed nations, who mostly come from poor developing nations. They usually send their hard-earned money to their families in their home country as remittances. They use the services of remittance companies like MoneyGram and Western Union, to name a few, which charge them high fees for every transaction.

Fortunately, cryptocurrency offers a cheaper alternative that can reduce transaction fees by as much as 90%. It also eliminates the time-consuming process that goes with receiving and getting the money sent, which is especially helpful for people living in poverty-stricken situations and depend on these international remittances.

Cryptocurrencies offer a more practical and cheaper approach for international money transfers for small and poor business owners that opened the doors for financial innovation for some countries.

Overcome Inflation

Millions of individuals in developing countries have to live with the harsh reality of inflation. A good example is Venezuela, where the country's currency is virtually worthless due to hyperinflation caused by an ongoing socio-economic and political crisis and poor macroeconomic policies.

MYUBI and other cryptocurrencies have the power to help those living in nations suffering from high inflation to take control and overcome it. Cryptocurrencies provide an alternative or complementary form of currency to national currencies which may be difficult to obtain (scarce) or subjected to high inflation where the national currencies are almost useless for the purchase of goods and services. In some cases, cryptocurrencies represent a more stable store of value than national currencies suffering from high inflation.

Anyone who wants to obtain cryptocurrency in developing countries can do so by purchasing on cryptocurrency exchanges, over-the-counter, or by mining.

Thousands of Venezuelans have shielded their economic livelihoods from hyperinflation through obtaining and using cryptocurrencies through one of the above methods. In ideal circumstances, mining can earn participants up to USD$500 each month, an amount that is big enough to feed a family of four, as well as provide them with basic household items.

Fighting Corruption by Promoting Transparency

Developing nations suffering from corruption and lacking development agencies are often the cause of many problems, resulting in a slower rate of poverty alleviation and inefficient financial systems.

Cryptocurrencies can provide developing countries with innovative (and an essential) system of reducing corruption by allowing governments to be able to easily keep track how government funding is spent and ensure it is spent on the intended purpose. Blockchain technology can massively reduce the time needed to investigate a corruption case from more than a year to a single click of a button. This type of financial tracking would be a deterrent for bribes in the public sector, which amount to between $1.5 trillion and $2 trillion annually.

Public distributed ledger (blockchain) technology helps promote transparency and deter corruption. All transaction data contained on the blockchain is distributed across numerous computers, minimising data loss risk. Because all transactions on a public blockchain are traceable, it can prevent corruption while improving transparency at the same time.



