Cryptocurrencies, since 2009, have been game-changers for financial markets worldwide. As of March 2021, over 70 million wallets held purchased Bitcoin. The reasons for this massive popularity are obvious. With its easy accessibility and peer-to-peer channels, cryptocurrency can help reach the poor and underdeveloped nations of the World.

Crypto harbours the ability to efficiently block out intermediaries and engage in direct transfer of value. In third world economies, with over 30% of aid lost to corruption, Bitcoin trading and mining may slowly and steadily emerge as effective alternatives, given their reputation for eliminating middlemen.

Of course, it won’t be straightforward. With a crucial prerequisite being a stable internet network, the development of efficient connectivity in third world economies is equally necessary to make crypto a success. In most cases, even with the increased availability of resources, especially in Sub-Saharan Africa, local communities are often discouraged due to a lack of proper funding and investment. Hence facilitating the development of proper network connectivity and physical infrastructure are of immediate need.

Bitcoin in Third World Countries: Challenges and Solutions

The challenges faced by most humanitarians regarding improving living conditions are often embedded in several facets. From the problems of go-betweens riling up corruption and filling bureaucratic stomachs to the problem of extractive economies, it has become increasingly difficult to hold on to funds.

Bitcoin engages in peer-to-peer channels, enabling donors to easily engage with recipients via simple methods like smartphones. Banking or any financial channel is now largely inclusive, which also improves the public’s confidence. Hence bitcoin effectively cuts through the labyrinth of in-betweens and exploitative local corrupt bodies.

There are instances marked in the history of various inclusive societies, vesting their power into military governance and dictatorship where few hold the wealth. In situations like this, the public is often rendered helpless. The benefit of crypto here is that it provides:

• A digitally viable market.
• Connecting small and local businesses to a broad global platform.
• Increasing financial capitals.
• Aiding in overall development.

By effectively helping the locals, crypto brings in financial stability, which can help in sustainability and help the communities engage in the efficient use of natural resources, making it a solution where everyone benefits.

The development of electrical infrastructure and investment in energy is also one of the primary problems faced by emerging economies. Despite the large availability of natural resources, regions like Sub-Saharan Africa often find it difficult to gather foreign aid and funding necessary for long-term results.

Because of Lacking sustainability or long-running profits, most of the resources go to waste. Bitcoin here can function as an innovative measure. Now, new power plants can generate immediate revenue by selling the energy to the crypto market, turning water & air into money. 

With a push and international aid, Crypto can effectively reboot the growth of local communities and regenerate economic activity.

The transparency provided by the information of cryptocurrencies to the public is also an effective measure of tracking expenditures and makes bitcoin more handy and helpful for global transactions.

Financing and repaying subprime payments have grown prohibitively expensive due to transaction fees nearly as large as the payments themselves. If costs and hazards are significantly lowered, such investments will become more common if not removed entirely. For repatriation transfers, cryptocurrency transactions have a lot of promise as financial and translation fees are deducted from each transfer at a very tiny percentage. 

Microcredits should benefit from the lower costs connected with cryptocurrencies such as bitcoin.

Anyone in the twenty-first century has two valuable assets: time and money. Thanks to the power of Bitcoin – This cryptocurrency, in particular, helps underdeveloped countries and overseas workers by lowering remittance rates. These are costs charged when a foreign worker sends money to a friend or family member in their native country. 

Rebit, a Philippine-based holdings firm for Bitcoin-related companies, exemplifies this idea, which allows users to move money to the Philippines without incurring hefty fees. Workers in the United States can convert their dollars into bitcoins and send the money home to their relatives in pesos.

As the face of the crypto market, Bitcoin has and will immensely benefit developing nations by providing an innovative and futuristic stronghold.

Exciting times ahead!

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.