Blockchain technology, thanks to the popularity of the Crypto market, is slowly becoming the next big thing in the tech market. And, why wouldn’t it be? After all, it’s the best possible solution available out there when compared to our current financial infrastructure.
With it, you can make a transaction much more secure than before. And, the quickness of the same will increase massively as well.
However, how are its creation, Cryptocurrencies, impacting the developing countries through the whole world? Keep reading to find out more about it.
Benefits Of Using Cryptocurrencies
Usually, the government of developing demographics are quite against the usage of Crypto. It is touted to be some sort of “enemy” to their financial infrastructure.
But, needless to say, it’s not true at all.
If used correctly, Cryptocurrency can improve a nation’s economic ecosystem by a mile. Here is what you need to know in this regard.
Poverty In Developing Nations – What’s The Reason?
Even though it may seem unlikely, developing countries tend to experience more poverty or financial imbalance than anyone else. Here’s why.
- The issue of systematic inequality makes rich people richer and the poor; poorer.
- Lack of education can make it tricky for people to earn money in a plausible manner.
- Not getting enough support from the government can affect this aspect as well.
Apart from these, the developing countries tend to lack in job-related opportunities too. It, in turn, can increase poverty even more and affect their financial ecosystem massively.
Also, the continuous issue of stealing and fraudulence can have some sort of negative impact on the economy of the country too.
How Does Using Cryptocurrency Benefit?
I mean, yes. Cryptocurrency can’t increase the opportunities of livelihood in a country. But, it can certainly take care of other issues effectively. Here’s how.
Advantage – 1: The Sense Of “Decentralization.”
Because of being decentralized, not a single government body can control a system made out of the coveted blockchain technology. Therefore, the option of providing tax whenever you’re transacting money to someone else will not be applicable here.
Also, there’s no need to offer any kind of money to the government. After all, they will not be overseeing anything. So, why would they charge anything from you, right?
Advantage – 2: No Restriction
Cryptocurrency is borderless. Therefore, even if you’re sending money to a person living in a South-European country, you won’t encounter any kind of restriction at all.
However, if you are making a transaction with someone online, we’ll encourage you to use a secure medium, like the bitcoin era. This will reduce the risk of getting hacked or intercepted.
Advantage – 3: Accessing Various Financial Services
People with no access to a proper banking infrastructure can access more than one financial service with Cryptocurrency for free. Due to the presence of blockchain technology, you can participate in your local economy efficiently as well.
Also, unlike a banking infrastructure, you won’t have to provide money whenever you make a transaction at all. Hence, you’ll be able to save a boatload of cash effectively.
Advantage – 4: Can Fight Against Inflation
Cryptocurrencies, just like Bitcoin, tend to have a limited maximum supply. Thus, no matter what happens, it’s not going to get affected by inflation at all.
Hence, it can be used to fight against the hyperinflation in the developing countries and offer some help in stabilizing their financial system.
Advantage – 5: Immutability Against Corruption
With blockchain and Cryptocurrency, you can keep track of every possible data available out there, including your transactions. And, you can check them at any time as well.
This, in turn, can help you fight loan-related corruption where you’re made to pay more cash than you owe currently. The overall transparency in administrative procedures will improve even more as well.
The Final Say
The adoption of blockchain technology is still at an infancy phase. So, you cannot expect it to be perfect from every possible corner. But, if implemented properly, it can still offer a lot more benefit than you’re currently getting. So, we’re pretty sure that you won’t mind it.
In any case, hopefully, the adoption of Cryptocurrency will increase even more in the future. After all, it’s being touted as the potent successor of the traditional financial ecosystem. We know that it will become mainstream in one way or another!