How Bitcoin Could Change Third World Countries

Bitcoin Technology: How It Could Change Third World Countries
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Those that live in third-world countries or territories that are not as economically developed as the rest of the world must face multiple difficulties. Unemployment rates are high, lack of daily needs such as food and medical supplies is constant – and corruption is rife within the hierarchy. Overall, there is a missing economic engine that allows more developed societies to function.

The reasons and details for these countries to stagnate in development are plentiful and dependent upon individual circumstances.

Yet, all of them may be able to benefit from cryptocurrency and its underlying technology. Here are a few reasons why Bitcoin could be the shining light at the end of the tunnel.

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1. Helping the Unbanked

A lot of the countries referred to have limited or no access to secure banking. In fact, around 25% of adults around the globe do not have access to a bank account, with most of these adults residing in third-world countries.

Unbanked societies do not just cause problems for the people without banking services, it also prevents the local economy from developing and is overall a negative for the whole country.

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Cryptocurrency and the technologies involved can go a long way to solving this issue. Instead of waiting for a bank account service to become available to them, they can become their own bank manager by easily acquiring bitcoin wallet from Luno or any other reputable operator in the crypto world.

2. Money Transfers

When living in countries with hyperinflation and limited resources, every penny or cent counts.

For those that receive money from family members working overseas, they lose some of these financial gifts to the companies transferring the money.

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Transfer services are often slow and the businesses in question can take significant cuts from the amount of money sent.

On the other hand, blockchain technology works around these costs by making sending money to third-world countries cheaper – and much faster.

3. Currency Stability

Bitcoin does not have the strongest reputation for being a stable currency. It is arguably the most volatile of all the digital currencies around to date.

However, these statements only hold true when compared to fiat currencies. Non-digitalised monies are naturally less volatile than crypto is – but not always!

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There are some instances when Bitcoin is less volatile than local fiat currencies. These instances occur in less economically developed countries and ones that are suffering hyperinflation.

For example, Trump’s decision to extend sanctions on Zimbabwe has meant the local fiat currency is sinking and opting for the likes of Bitcoin could prove to be a smart and cost-effective decision for its residents.

4. Reducing Financial Crimes

The technology that Bitcoin and other cryptocurrencies are built on is open-ended. This means that it does not conceal anything and is much more secure than other banking and financial streams.

Overall, the blockchain is a force for good against criminal gangs who conduct financial crimes such as money laundering. With corruption often prevalent in these societies, blockchain technology could help combat it where it needs to be eradicated the most. However, such financial security could also help small businesses and startups.

These are four of the best ways that Bitcoin and its technology could help improve local situations and living conditions for those in third-world countries. Hopefully, locals and their governments can start embracing crypto for these benefits to become a reality.

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Paschal Okafor is NaijaTechGuide Team Lead. The article How Bitcoin Could Change Third World Countries was written by NaijaTechGuide Team. The article was last modified: November 29th, 2022
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