How Bitcoin Helps the Developing Economies

While the crypto revolution started in the developed world, the developing economies in Asia and Sub-Saharan Africa now boast the lead in cryptocurrency adoption. Although El Salvador is the only country where Bitcoin works as a legal tender, several developing nations recognize and accept it as a means of payment and a store of value. Developing economies now account for the most significant percentage of Bitcoin users worldwide. So, how does Bitcoin help the developed world? 

Increased Access to Financial Services 

Banks have been the sole custodians of financial services in the developing world for decades. However, it is unfortunate that some regions still lack banking facilities, hindering many businesses and individuals from accessing essential financial services. Over 2 billion individuals worldwide are unbanked and, most of them come from developing nations. 

The inaccessibility to banking facilities makes it exceedingly harder for those populations to access capital and transact with the rest of the world. Besides, the interest rates are usually very high in the few regions with access to financial services, discouraging the already financially disadvantaged people from utilizing them. 

Bitcoin makes it easier for even the unbanked to access capital because it is decentralized. Bitcoin users do not need bank accounts or financial institutions to send or receive funds. Instead, transacting Bitcoin only requires a smartphone and an internet connection, available in many developing countries today. 

Bitcoin’s decentralization enables its users to send and receive payments worldwide without going through the banks or money processors, promoting the flow of capital. You can transact Bitcoin directly through your wallet or an exchange platform like bitcoinprime.software. 

Prompt and Cheaper Money Transfers

A significant percentage of the developing world’s population is poor, heavily dependent on international remittances from charity organizations, friends, and families abroad. However, the costs of moving money across international borders are usually very high, especially for small remittances. Besides, processing cross-border payments in fiat currencies often lasts several days and weeks to complete. 

Bitcoin solves such inconveniences by ensuring instantaneous and low-cost international money transfers. Bitcoin transactions occur exclusively on a P2P blockchain network, without any third party. That reduces the payment processing duration to just a few minutes, ensuring those who need the funds receive them without waiting too long. 

The absence of intermediaries in Bitcoin payments also reduces the financial burden on users, impacting relatively lower transaction fees than ordinary bank transfers or credit card remittances. That is one of the main reasons leading charity organizations now use Bitcoin to source and distribute funds worldwide. 

Increased Economic Opportunities 

Several financial industries in developing countries have already adopted Bitcoin as a transaction currency and an investment vehicle. That has facilitated robust economic opportunities for corporations, businesses, investors, and individuals in the developing world. For instance, it has inspired the proliferation of crypto exchange platforms where the general public can buy, sell and hold Bitcoin for profits. 

Bitcoin has also created money-making opportunities for mobile developers, other innovators, and manufacturers in the developing world. Several products now exist, developed around Bitcoin and blockchain. Thanks to Bitcoin’s success, many developing countries are exploring ways to introduce independent cryptocurrencies to rival Bitcoin. 

Bitcoin also facilitates enhanced transparency and security in financial transactions, attracting foreign investments to various developing nations. Such opportunities enable impoverished populations to access employment and do business with the rest of the world, promoting growth and development. Those interactions also boost exchanging ideas, opening up more avenues for economic growth. 

The inadequacies and bureaucracies of the conventional financial systems in the developing world make it a fertile ground for Bitcoin adoption. The developing economies are increasingly embracing Bitcoin because it facilitates better access to capital, prompt and cheaper money transfers and, robust economic opportunities.

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