HOW CRYPTOCURRENCY CAN BE OF SERVICE TO DEVELOPING COUNTRIES
Poverty, corruption, and massive rate of unemployment are few of the problems common to developing countries globally. series of political instability and corrupt governments has thrust some nations into shocking economic crucial point. With the fast-paced nature of growth and evolution in other more developed segment of the world, the possibility do seem bleak for these developing nations. However, the arrival of blockchain technology and cryptocurrency has brought renewed eagerness about the probability of a revival in these countries. The purpose of this writeup is to analyse possible answers to the question of how cryptocurrency can be useful to countries.
.diminish payment or settlement Cost
The global payment system is based entirely on the affairs of citizens of developing countries who are immigrants in the developed world. From time to time, these persons have to dispatch money back home. to do so, they have to depend on mediator services like Western Union, Money Gram etc. These platforms fetch fees which greatly increase the cost of transactions. by figures released by the World Bank, the remittance recorded to developing countries in 2016 was about $441 billion, more than half of the total recorded global remittance. The figures also shew that global remittance fee for Sub-Saharan was a mean of $20 per $200 which was the highest in the world.
With cryptocurrency, the cost of remittance can be drastically reduced as well as the hassle needed to receive international money SureRemit, a Nigerian based blockchain-powered remittance system that will offer zero-cost, cross-border transactions launched their ICO in January of 2018. In the Philippines, there is a platform called Rebit which offers more efficient remittance services. Users of the Rebit platform can send money at a much lower than rate than conventional money transfer services.
. Improve Financial Inclusion
Lack of financial iinsertion is a grand problem in many low-wages countries around the globe. According to the World Bank, there are more than 2 billion unbanked people worldwide. The consent of this number live in developing countries around the globe. In countries like Pakistan, Chad,nigeria, Burundi, Niger, Yemen, and Cameroon, less than 15 percent of the adult population have bank accounts.the ones that do have bank accounts are said to be underbanked meaning that they don’t have access to premium banking services. This lack of access to banking implements precludes them from being able to participate in global commerce.
With cryptocurrency services like MPesa and BitPesa, millions of unbanked people can get access to banking services and financial instruments through cryptocurrency. These platforms are offering cryptocurrency banking services through mobile phone apps. Telecommunications has been able to attain a much better market penetration than banking services. These crypto banking platforms are using the reach of telecoms to take financial emancipation to the doorsteps of the unbanked and underbanked. The end result is greater financial inclusion.
for further information visit
https://medium.com/the-mission/how-cryptocurrency-can-help-developing-countries-2a720192ba6a
