One of the main reasons why blockchain can be a solution is that it offers banking for people who could not have it before. Another good reason is that, comparing to Western Union and similar services, that it offers low fees for transfers abroad.
Below are 10 countries that would benefit most from crypto adoption:
The International Monetary Fund says inflation of the Venezuelan bolivar is expected to hit a startling 200,000 percent this year. And that is the main reason why people are looking for ways to operate outside the system just to buy goods and services.
Choosing cryptocurrencies such as bitcoin in Venezuela over the bolivar is just another survival strategy.
Crypto would be a solution to the currency crisis in Zimbabwe. Zimbocash is one of the start-ups in the world of crypto. Founders of Zimbocash believe, they can help Zimbabwe write a different monetary narrative. Also, they believe, it is not just giving a new lease on life to the country, it could also make Zimbabwe a new global banking powerhouse.
According to the World Bank, the inflation rate of Sudan in 2019 was 50.43%, and in 2020 it has been reached to 62.08%. So cryptocurrency could play an important role in combatting inflation.
For some African nations, Bitcoin and other cryptocurrencies are solving various types of economic issues such as cross-border payments.
Argentina demonstrates the key example of Bitcoin solving an issue of monetary justice related to the persistent debasement of the national currency – The Peso.
Iran is facing currently a tide of financial sanctions imposed by the US. Their government is searching actively for ways to circumvent them.
Currently, some Iranian establishments are reportedly accepting crypto deposits. As stated by Cryptoslate, online hotel booking platforms, HotelsInIran, is encouraging the utilization of Bitcoin and Ethereum to book accommodation in Iran.
Ethiopia is also one of the top 10 countries that fall in the list for the annual inflation rate according to the International Monetary Fund and the World Bank. Bitcoin is one of the best solutions to fight against inflation and it can increase purchasing power.
In addition to Bitcoin as a digital store of value across all jurisdictions, crypto’s resiliency to shut down and immunity from repossession lies at the heart of its monetary justice property.
Blockchain technology blossoms in Haiti nowadays. Haiti is the poorest country in the Western hemisphere and today it has an emerging range of projects using blockchain technologies to solve issues in ordinary people’s lives.
Uzbekistan is also one of the countries that seek to lure cryptocurrency exchanges with tax sops. According to Coindesk, crypto-related income would not be taxed in Uzbekistan. Licensed exchange with crypto and foreign fiat currencies would not be subject to existing foreign currency regulations. The main goal of such a decision is to develop new regulations for crypto in the country.
In 2019, Turkey has struggled a lot with currency devaluations of the lira and the inflation rate reached as high as 20% at the beginning of the year. Because of such high inflation, investors have less confidence in the economy of this country. To overcome this situation, cryptocurrencies are one of the best solutions. The growing accessibility of crypto such as Dash enables merchants and consumers to be better able to escape the government-created inflation and uncertainty of local currency.
Inflation, corruption, high unemployment, and poverty levels are some of the issues that are common in Pakistan. There are many ways in which crypto could be of benefits to Pakistan and other developing countries that are facing the same problems.
In this way, blockchain technology and crypto continue to be at the heart of public consciousness around the world. It will be surely interesting to see to what extent developing countries apply crypto solutions to their problems.