Cryptocurrency Usage for Developing Countries
Cryptocurrency users around the world are increasing day by day. This brings to mind that cryptocurrencies can be an integral part of our daily life. It is observed that the growth in the use of cryptocurrencies is seen especially in developing countries. People are looking for alternatives for payment and investment. If it continues in this way, we can talk about the adoption of cryptocurrencies around the world soon.
In general, record levels were reached in the number of new users in the Commonwealth of Independent States countries including Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
A similar economic situation is observed in China, Brazil, and Mexico, where people who have lost confidence in their local currencies withdraw their money from banks and invest in cryptocurrencies.
This may explain the high penetration rate of digital assets in developing countries. Cryptocurrencies can also solve the problem of participating in international trade without having a bank account. Cryptocurrencies like Bitcoin can help individuals and businesses facilitate to make small-scale international trade. Using cryptocurrency allows the parties to sell products in exchange for cryptocurrency and thus to switch from traditional e-commerce systems, that require opening a commercial account with a bank, to cryptocurrency systems One of the benefits of cryptocurrencies to developing countries is that anyone with internet access can download a Bitcoin wallet so it can serve as a bank account. This wallet can be used as a bank account where people can save money and do daily transactions.
The decline in transaction costs can also increase the likelihood of microloans as money transactions are currently facing high costs. Eliminating these costs will create enormous opportunities for international financing. Using cryptocurrencies allows individuals in more developed countries to make money transfers to people in developing countries. With these developments continuing around the world, cryptocurrencies, predominantly with smart contracts, can contribute to strengthening social trust and fighting corruption through a more transparent contract system. Citizens can use public registration data of cryptocurrencies in the blockchain to monitor how government funds are being used. It will also allow governments to better track their spending and improve their budget allocations.
