Cryptocurrencies Are Proving to Be a Boon for Developing Countries

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Cryptocurrencies Are Proving to Be a Boon for Developing Countries

March 08
15:29 2023
Cryptocurrencies Are Proving to Be a Boon for Developing Countries
In developing countries, people of all ages are familiar with technology and use it for everything from browsing to banking.
Cryptocurrency is Helping Those in Developing Countries With No Reliable Financial Infrastructure

London, England – 8th Mar, 2023 – While it may not have been the original intention, the invention of cryptocurrencies has created a global payment system accessible to everyone wherever they are located.  This has benefitted those living in developing countries.  Cryptocurrencies have offered a welcome stable alternative for those living with unreliable financial systems.

The combination of fluctuating inflation rates and widespread familiarity with internet technology has led to the high adoption rate of cryptocurrencies in many developing countries.  Michael Sonnenshein, CEO of Grayscale Investments, explains that “in the developed world, digital currencies in the near term are speculative investments.  In the developing world, digital currencies are a springboard to financial inclusion.  Look at the advent of cell phones as a technology that leapfrogged traditional landlines.  It’s similar to digital currencies since half of the world’s adult population don’t have access to financial services.  Digital currencies like Bitcoin could help leapfrog traditional banking systems.”

The most high-profile example of how developing countries are embracing cryptocurrencies might have been when El Salvador officially made Bitcoin legal tender in September 2021.  Although the move was controversial, it reflected the trend in many countries to adopt cryptocurrencies.  According to Chainalysis’s 2022 global index data, the top 15 countries ranked by crypto adoption included Vietnam, the Philippines, Pakistan, Nigeria and Colombia.

Prof Omid Malekan of Columbia Business School points out that “anyone can own crypto in small amounts–and hundreds of millions of people all over the world do.  Adoption is highest in places like Vietnam, Pakistan, and Nigeria, countries where the banking system is unreliable and the local currency inflationary.  If your domestic currency is collapsing, then all a cryptocurrency needs to do is bounce around and you still benefit.  Despite the overall decline in crypto prices in the past year, Bitcoin has still appreciated against the Argentine peso.”

The accessibility of crypto is one of the factors driving its popularity in developing countries.  Anyone with an internet connection can buy crypto without difficulty setting up a bank account or travelling to a bank.  A Citi report entitled Bitcoin: At the Tipping Point stated, “Many case studies have been done illustrating how Africa has leapfrogged in the build-out of its financial ecosystem, foregoing the establishment of a robust banking industry and instead jumping quickly to mobile digital wallets.  Tech-savvy residents are used to digital cash, making the region particularly well-positioned to consider bitcoin and other cryptocurrencies.”

It’s not just African countries benefitting from using crypto.  Venezuela has suffered through years of high inflation rates.  Since 1983 the Venezuelans have experienced continuous and uninterrupted inflation, with double-digit annual inflation rates.  At the start of 2022, Venezuela finally exited a four-year bout of hyperinflation – commonly defined by economists as monthly inflation of more than 50%.  The use of crypto has been encouraged by the government.  Many businesses, including supermarkets and fast food chains Pizza Hut and Church’s Chicken, now accept crypto as payment.  “It’s easy to see the appeal of crypto in countries such as Venezuela,” says Nathalie Roy, owner and creator of  “It offers a more stable financial option and can be used worldwide.  Transactions are also quicker and cheaper when using crypto.”

Not only is crypto used as local currency, but it also helps those from developing countries working in places like Europe and North America.  Using crypto to send money to their family means they lose less in fees than conventional banking.  Many businesses feel that it makes them more profitable, and they find it easier to trade with other countries with different currencies.  In recent years crypto has also started to be used as collateral for loans, allowing businesses to invest in development and expansion even in the most unstable economies.

For those living in developing countries, it is easy to see why cryptocurrencies are regarded as a lifeline.

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Company Name: Authority Boost
Contact Person: Nathalie Roy
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Phone: 1300 227 473
Country: United Kingdom

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