Akon’s Akoin Crypto Project Highlights How Emerging Economies Can Benefit from Blockchain

Benefits Of Cryptocurrencies To Emerging Economies

Developing countries face a myriad of problems such as high unemployment levels, high cost of living, poor infrastructure as well as political instability. However, the launching of cryptocurrencies into the global financial markets may be the what these emerging economies need in order to explore and achieve their full potential.

Some of the advantages of adoption of cryptocurrencies by these developing countries include:

Low Costs Of International Money Transfer

When it comes to emerging economies, money is actively coming in and out of a country’s borders. Each day, thousands of transactions are carried out and a lot of fees is charged for these international payments.

However, the use of cryptocurrencies reduces this cost since it allows peer to peer transactions which eliminate the need for banks who charge very high fees.

Increased Financial Inclusion

A lot of the population in emerging economies remain unbanked and can’t take advantage of the financial solutions out there.

Cryptocurrencies opens up this population to a whole new financial world which in turn spurs growth. Using blockchain technology to open digital wallets provides accessible financial solutions to individuals who are not in a position to open bank accounts.

Freedom From Government Manipulated Currencies

Political instability is a major challenge in developing countries and with it comes inflation which has been a major challenge. For example, Venezuela is grappling with hyperinflation to the detriment of its citizens.

As much as cryptocurrencies may not be stable, there’s a new crop of cryptos referred to a ‘stable coins’ whose value is pegged on actual assets. By adopting such coins, a country is cushioned from currency manipulation by government or outsiders.

Fundraising Medium

Blockchain technology has provided a more transparent and accessible way of bussing entrepreneurs to raise capital. Through ICOs , people in developing countries can quickly raise funds to fund their ventures on a global scale. Cryptocurrencies have reduced the barriers of entry into viable economic ventures. Entrepreneurs in developing countries can now build their visions in a simple and digital manner.

There’s no denying that cryptocurrencies offer hope to emerging economies and it’s highly advisable for people in these economies to take advantage of the limitless opportunities that blockchain technology offers.