The Adoption of Cryptocurrencies in the Developing World

Introduction

Bitcoin has acted as a sharp tool for the development of many countries. This article highlights the impact of these bitcoins, how the bitcoins have been adopted by developing countries and how the businesses have taken the impact of the presence of bitcoins. Other than bitcoins cryptocurrencies have also taken their positions in the market of currencies. Cryptocurrencies are for sure digital money through which transactions can only be done through the internet. But the developing countries in the developing world have reached the point at which they are able to deal with cryptocurrencies. These developing countries have adopted such ways and which have acted as a supporting pillar on the journey towards development. 

Opportunities Through Cryptocurrencies in Developing Countries

On the basis of the analysis and research done on developing countries, the economists have come to a conclusion that the crypto currencies can shoot up the process of development. Indirectly the usage of the internet services in countries have started because of which these countries have got the chance to connect with the globe. This is because the internet users are only able to trade in crypto currencies. The increased usage of the internet has led to the exchange of ideas and technology between developing and developed countries.

The process of crypto currencies and the exchange of money through these crypto currencies are easier and cheaper. Thus it has turned out to be affordable for people living a middle standard of living in developing countries.

Many of the businesses wanting to do trade do not have a bank account. They lie on small scale industries platforms and therefore can participate in small scale international trade. The traditional e-commerce methods and systems can now be pushed aside as people can now trade in exchange for bitcoin – go to stockapps for more information. They have greater financial inclusion as the developing countries will not have to shower their money on the infrastructure for banks. This decreases the risk of poverty. All the exchange and transactions through cryptocurrency is done through internet connection so there is no need for increased infrastructure facilities.

A software wallet is needed to make use of cryptocurrency. So for those who are facing a lot of hurdles in making their bank account can turn to cryptocurrency.

According to the research by PUNDI, a platform which assists retail businesses to transform through its blockchain-based point of sale solution, about 100 people from different countries were given crypto assets for free. They were promised to be given more of those crypto assets if they attracted other people to use crypto assets. The response from Indonesia and Russia was higher as compared to other countries. This proves the fact that developing countries even prioritize a small amount of money so they will adopt a greater impact of cryptocurrencies.

The fact that out of 65 countries in the Statista Global Consumer Survey, the people of Nigeria are the ones who own the most cryptocurrencies. This means that such developing countries have been following the path of cryptocurrencies.

Conclusion

According to the World Bank 1.7 billion people do not have bank accounts due to the lack of documentation or any other hindrances. Such people mostly live in developing countries where the banking system is not that vast and is of small scale. Because of which the developing world has adopted the cryptocurrency in the first place.

Again, according to the hackernoon.com Venezuela, Zimbabwe and Iran are the ones which are the prominent users of bitcoin (an example of cryptocurrency). The factor which is common in these three countries and the reason behind their huge usage of bitcoins is the underdevelopment of their local market and underperforming domestic currencies.

Therefore, data shows there has been an increasing trend in the adoption and usage of crypto in such developing countries. Platforms like PayPal are aiming to introduce a feature which would allow its users to make payments via their cryptocurrencies, for both – local as well as international transactions. 

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