Ethereum has severally been said to have the potential to overtake Bitcoin thanks to its versatile infrastructure. This is already happening in developing countries, according to reports by Joseph Lubin.
Developing nations are employing blockchain tech to leapfrog outdated financial systems.
-The Philippines is connecting rural banks via a crypto-cash payment system
-Chile is using #Ethereum to track energy data
-Cryptoassets are protecting millions against hyperinflation
— Joseph Lubin (@ethereumJoseph) December 1, 2018
Laying Down The Foundation
Ethereum’s cryptocurrency may be performing dismally owing to the ongoing bear market but the underlying technology is expanding in leaps and bounds. The Ethereum Blockchain is popular for its ease of use when it comes to creating and launching cryptocurrencies – it is the reason why there is an influx of cryptocurrencies. The platform is also secure, fast, and incredibly flexible, and Mr. Lubin attributes these qualities to its growing adoption among developing countries.
Joseph Lubin is the co-founder of Ethereum – he is also the founder of ConsenSys, a software production company. In a recent press release, Mr. Lubin expressed his excitement about the platform’s growing role in the improvement and transformation of financial systems in developing countries.
Chile And The Philippines Leading The Way
Governments all over the world are adopting Blockchain technology at varying lengths. The Philippines and Chile, however, already have elaborate programs running on the Ethereum Blockchain ecosystem.
The Philippines’ financial and banking systems are barely efficient as the country’s Central Bank reports that 77% of citizens do not have access to banking services. This, however, is set to change as Union Bank has recently partnered with ConsenSys to utilize the latter’s Ethereum Blockchain technology to reach more people in the country’s rural regions. The ultimate goal is to ensure that everyone in the country enjoys financial inclusivity. It should also be noted that there are many other small businesses and companies in other industries already utilizing Ethereum’s Blockchain technology.
Chile has taken the use of Ethereum’s Blockchain technology even further by integrating it into the national energy grid. Chile’s National Energy Commission is using Ethereum’s proof-of-work Blockchain ecosystem to track all data pertaining to energy consumption. This data is sensitive but the NEC is confident – according to the commission, Ethereum was chosen for the job owing to its “traceability, integrity, augmented levels of security, and confidence in the information available to the public”. In fact, the country’s Energy Ministry was keen to praise the platform for its guarantee to protect its energy data from manipulation.
Cushioning Users From Hyperinflation
Ethereum, and cryptocurrencies in general, are also helping individuals in developing countries from the effects of hyperinflation by essentially functioning as a store of value. This is because developing countries have weak economies prone to unprecedented levels of inflation.
For instance, Venezuela is struggling with the highest inflation levels in history – inflation rose to about 834% this year. The country has responded to this by launching its very own cryptocurrency, the PETRO. Many Venezuelans are also adopting Dash as the mainstream medium of exchange in a bid to escape the government’s stringent regulation and control. This move is already working as several crypto companies are setting up shop in the country and even international brands are doing business with this new payment service.
Ethereum may be performing poorly as a token, but it is growing in leaps and bounds as a Blockchain technology. Several developing countries have adopted the technology and many others are contemplating doing the same.