Blockchain technology has pretty much made its mark as THE revolution of the bygone decade. The increase in value and popularity of cryptocurrencies means that mainstream investors are becoming increasingly interested in the technology driving the crypto craze. 

Alongside being a crypto vessel, blockchain also offers a decentralized ledger, which can have tremendous advantages for developing and even underdeveloped countries. In this blog, we will talk about the ways in which crypto and blockchain can help these emerging or struggling economies. 

Crypto In Developing Countries?

Statistics reveal that approximately two billion people around the world do not have any access to financial institutions or services.  In other words, around 25% of the global population is unable to get credit or even safely store its money. 

For such individuals and countries, cryptocurrency is like a beacon of light, allowing them the chance to boost their earnings, secure their futures, and increase their life quality. The financial accessibility offered by crypto can result in job creations, which can prove to be a growth catalyst for developing economies. 

A large proportion of financially-deprived people belong to developing countries. However, many of these regions also have tech-savvy, young populations. Africa, for example, is more used to mobile phones than it is to regular electricity, and Africans use mobile phones to perform regular life exchanges which, in recent times, have included cryptocurrencies. Africa has more than 200 million people aged between 15 and 24 – people who understand technology and investment, and could therefore make excellent cryptocurrency customers. Other developing countries like Indonesia, Turkey, and India display similar trends. The combination of a young population and reliable internet connection provides the perfect platform for quicker cryptocurrency adoption. 

As per reports, India ranks second in the world in terms of crypto adoption. This is a tremendous feat, especially when you consider that the country does not have a regulatory framework for digital currencies. Add to it the fact that the Indian Rupee (INR) has steadily declined against the USD for the last decade, increase in inflation caused by the COVID-19 pandemic (India has been one of the hardest-hit countries), governmental issues, and India’s large population, and you have the perfect recipe for crypto acceptance and adoption. 

Wrapping Up

Crypto adoption can play a major role in financial inclusion. However, desperation for technology and having the right external environment are not, on their own, sufficient for achieving this purpose. Developing economies require an increase in crypto companies and applications, as these will help familiarize the people with the idea and advantages of a new payment system.  Government support, and crypto-friendly laws and regulations, too, will play a decisive role. 

While the developed world, including the USA and parts of Europe, have embraced cryptocurrency and are reaping the benefits of doing so, the next financial inclusion wave should also target developing economies and help them improve their earnings and lives.