Unfolding Crypto Developments Driving Adoption & The Greater Good Across 3rd World Countries
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Cryptocurrencies have been a hot topic in recent years. With the rise of Bitcoin, Ethereum, and several other cryptos, people are finally starting to see them as a viable alternative to fiat currencies. As a result, the cryptocurrency market is booming, and many “new” users are getting involved.
While we tend to think that most of the people involved in the crypto market are from North America, Europe, and East Asia, there has been a significant uptick in the number of users from developing countries. For instance, cryptocurrency adoption in developing economies like India and Africa is in full force despite the shaky, unclear regulatory outlook.
Even though banks and governments have issued warnings in a bid to discourage citizens from using cryptocurrencies, people in these countries are increasingly turning towards crypto to make and raise their standard of living. In many third-world economies, citizens are battling uneven economic growth, high inflation rates, and limited access to financial services, which has led to a massive surge in the number of people falling below the poverty line.
In its recent report, global crypto exchange AAX notes that crypto adoption in Africa is in full force despite regulatory hurdles. For instance, even after the Central Bank of Nigeria forbade all licensed institutions to partner with crypto firms, crypto adoption grew as users discovered new ways to buy and sell digital assets. Moreover, data from KuCoin exchange shows nearly 2,670% growth in crypto-related transactions across African countries during 2021.
Fortunately, most people in third-world countries, especially the younger generation, view cryptocurrencies as potent economic and social development tools. According to a recent survey by Chainanalysis, Asian and African countries account for more than half of the global cryptocurrency users. India, Pakistan, Vietnam, Kenya, and Nigeria are among the countries experiencing a dramatic increase in the number of people getting involved in crypto, DeFi, and other decentralized financial primitives. Likewise, poverty-stricken nations across Latin America, too, are embracing crypto as a potential hedge against rising inflation.
Owing to this promising growth across third-world countries, several blockchain-based companies and institutions are now taking a keen focus on providing the necessary resources to help further accelerate the adoption of digital currencies. For instance, Africa has now become a hotspot for a diverse range of crypto startups, with several projects like GoodDollar, Gluwa, Jelurida, World Mobile, and many more playing key roles in raising awareness about crypto while at the same time enabling people to access financial services.
Adedayo Adebajo, Africa’s director for Jelurida, is highly optimistic about the continued growth of crypto across Africa. He explains, “African nations believed they were left out of the first three industrial revolutions. The 4IR (fourth industrial revolution) technology including blockchain and cryptocurrency has, for the first time in history, provided them with an opportunity to participate in making history. Most governments in the continent are now open to capacity building and localizing solution developments, among others. To do so, their doors remain wide open to foreign offers that will get them closer to their aim.”
Here are a few leading blockchain organizations spearheading the efforts to make crypto more accessible and inclusive, especially for the unbanked and underbanked people across developing countries.
Unlocking Financial And Technological Resources
India is among the fastest-growing crypto economies, both in terms of user adoption and blockchain-based projects. After years of confusion, the Indian government recently imposed a tax on crypto income, indicating that cryptocurrencies might soon become legal.
Following the announcement, Coinbase Ventures, the investment wing of the American crypto exchange Coinbase, announced its intention to invest USD 1 million across several Indian cryptocurrency and Web3 startups via an in-person pitching event. In addition to the USD 1 million investment, Coinbase Ventures is also giving away USD 25,000 worth of bonus grants funded by BeliefDAO, along with mentoring sessions that connect entrepreneurs with some of the most influential minds in the crypto universe.
In his recent blog post, Coinbase CEO Brian Armstrong revealed that his venture firm aims to attract the country’s rich software talent, especially from the crypto and Web3 domains, to help accelerate India’s ongoing journey towards financial and economic growth and inclusion. PriBeforeis, Coinbase had invested USD 150 million in Indian crypto and Web3 startups. The platform also plans to recruit more than 1,000 employees in its “Coinbase Indian Tech Hub.”
GoodDollar, the not-for-profit blockchain platform onboarding the next wave of crypto enthusiasts, too, is playing a pivotal role in helping expand the use and adoption of cryptocurrencies across developing countries. GoodDollar’s blockchain-powered income distribution model is designed to create and distribute a stream of digital currency (G$) by leveraging free-market forces and social investing principles.
To further expand its mission of offering a free and easy way for the underbanked and unbanked global population to access financial services, the platform recently launched its native Android application. Launched just a couple of months ago, the GoodDollar app has been witnessing significant growth, with more than 30,000 users downloading the app since the beta release in December 2021.
Since the mainnet launch of the GoodDollar app, the GoodDollar team has distributed more than USD 50,000 worth of G$ to thousands of users from third-world countries like Vietnam, Nigeria, Venezuela, and Argentina. At the same time, the value of the GoodDollar Reserve, the reservoir that backs the generation and distribution of G$ to 300,000 users, has also jumped past USD 1 million. The GoodDollar community now has more than 300,000 active users, with the total market capitalization of the G$ moving close to the USD 2 million mark.
