Cryptocurrency has never been perceived in the right way; it has always been considered as some scam or something. The overall perception of the cryptocurrency is much weird. People believe that all illegal activities are done using cryptocurrencies.
After the pandemic, COVID-19, the ‘underdeveloped’ countries or the ‘developing’ countries have been able to accept cryptocurrency for their progress in life.
Due to the pandemic, many have lost their jobs, and many have not been able to continue their employment. They had to give up with all sorts of work and all possible revenue. Unless I came across Bitcoin Champion, I used to think that it is just a bubble.
But eventually, it was found that many such developing countries have accepted cryptocurrency majorly during the pandemic days.
How Has Cryptocurrency Helped the Developing Countries?
There are many ways in which the cryptocurrency has helped the developing countries, but if we consider the significant factors, then we find some reasons. They are some of the primary reasons which are responsible for the people of the developing countries to live a better life.
People With Bank Accounts
The cryptocurrencies are supposed to help people with no bank accounts in developing countries. There are more than 1.7 billion people in the world who live without a bank account. The largest population of such people stays mostly in the states that are lacking in the economy.
Like if we look at the Philippines, there are only nine banks per 100,000. It is challenging to be a part of the world’s economy if you do not have a bank account.
On the other hand, almost 4 billion people have access to the Internet and are pretty aware of the world’s cryptocurrency market. The Internet has played an essential role in bringing all kinds of change and revolution in the world.
If you have the opportunity to be online, you will be able to get access to the cryptocurrency, and then you will be able to invest it on anything. In the pandemic, many customers have used cryptocurrencies to buy groceries’ daily use as much as possible, which has also helped the merchants. The income happened in some form or the other. This had helped the consumers and the merchants to survive during the pandemic when another fiat currency has not been able to perform. It has boosted the morale of the people.
Helped to Develop Business
The use of cryptocurrency in a developing country would help the country develop a small to medium business. This way it would be helpful for the people of the developing countries. In developing countries, having a small business is also of great help to the citizens.
It isn’t easy to get a business loan in a developing economy; hence cryptocurrencies can be used. Pakistan is home to more than 200 million people in Southern Asia. Several platforms offer loans from crypto accounts. It also allows smaller businesses to raise sufficient funds to set up and start the relationship. Thinking of raising funds would have been previously impossible, but with the crypto-backed accounts, it has become very much possible.
Helps to Fight Corruption
One of the biggest problems that are faced by developing countries is to fight corruption. Cash transactions in the form of a bribe are challenging to track down. While it is also challenging to track bitcoins or cryptocurrency, they have an address, the address of the cryptocurrency is helpful to fight corruption.
The process of the cryptocurrency is made decentralized using the power of cryptocurrency. The decentralized tracking system of the cryptocurrency helps to track down, which address has sent money to whom. However, the amount is not precise or not known always.
In such cases, it would be easy for the authorities to find out who is doing what kind of transaction, and this is how most of the operations were to be tracked.
The status of the cryptocurrency in the developed countries is gradually getting a higher position. While on the other hand, it has shown some ways in which it could be considered one of the best ways to help the world economy to grow as required.