Future Is Cashless: How to Effectively Spread Awareness of Digital Currencies in Third World Countries

Future is Cashless

Source: pixabay.com

People around the world are already considering an alternative to carrying cash and digital wallets have become especially popular during recent times due to the current pandemic.

However, even central banks around the world are rising up to the cause and preparing themselves to launch their digital currency.

The convenience and facilitation of going digital with your finances are immensely approved by the general masses and hence become a driving factor behind this whole movement. With national currencies planning to go paperless, the future is indeed digital.

According to a recent study by Software Finder, the global blockchain market size is expected to reach $57 million by 2025 with Bitcoin accounting for $6 billion in daily transactions.

While the current market cap for Bitcoin sits at $144.96 billion, it is interesting to know that 78.95% of cryptocurrency owners actually bought their coins, while the rest mined. In light of this information, let’s take a quick look at how awareness about digital currencies in the third world countries can be spread.

1. Radical Innovation for Financial Solutions

Blockchain and digital currencies themselves are a move towards innovative technology that is quickly changing how finances are being managed across the globe. Through digital currencies, one can potentially lower the transactions costs considerably and have the option to make payments at any time.

This is due to the fact that payments made through digital currencies are made directly between the parties involved in the transaction without the need for any intermediaries, which makes it instantaneous and low cost.

What you are also benefiting from is by putting a stop to fraud that may accompany chargebacks. Lastly, there is a case of inflation as well, where many central banks of countries may inflate their currency to keep their heads above water. Since cryptocurrency are not regulated by governments or other authorities, they cannot influence it as well.

2. Digital Entrepreneurship Ecosystem

Without question, technological innovation in recent times has had a profound impact on entrepreneurship and business creation.

This has led to the development of DEE (Digital Entrepreneurship Ecosystem) that are currently being shaped through digital technologies that are enabling people to build businesses and generate outputs from them. Furthermore, as the masses become more familiarized with technology, collective intelligence grows.

This can then help in delivering a framework on which DEE can be further nurtured. Today we find success cases in process-driven, product-driven, and resource-driven DEEs. A prime example is of the South African market where technology paved the way for tremendous growth in the e-commerce industry and businesses.

3. Infrastructure Supported by Blockchain

Third world countries often have to face a non-trustable environment, and this can also pressurize foreign investment to diminish from the region. However, through blockchain technology, a creditworthy ecosystem can be established amongst independent participants.

This system can then be used to provide a secure and autonomous pathway to self-regulated data ownership and programmable smart contracts.

With Facebook announcing Libra and Central Bank of China informing the public about their plan involving DCEP (Digital Currency/Electronic Payment), blockchain will receive tremendous prosperity in the coming years.

Hence this will make blockchain to become even more creditworthy, secure, private, supervised, and efficient enough to outperform traditional currencies.

4. Meeting Liquidity Requirements

Liquidity is the ability to convert assets into cash easily, in less time and effort, as well as without losing value when facing market factors. For many companies out there, liquidity is considered important as it can allow company owners or stakeholders to pay off short term debts and liabilities.

Importance of Liquidity

This makes liquidity an important factor for any tradable asset, which is why cryptocurrency can make a lot of impact on companies operating in the third world market.

This is due to the fact that liquid markets are much smoother and easier to enter or exit. Whereas on the other hand, illiquid markets can make traders worry as they are difficult to exit, thus making them less worthy of future investments.

5. Near-Anonymous Online Transactions

While the ability of internet users to conduct anonymous transactions or correspondences may bring both benefits and dangers, however, it can serve to lower transaction cost managed by intermediary parties. Consider the role of third parties that are required to regulate financial transactions.

Majority of them are financial institutions are often found working on a trust-based model in which transactions have to be reversible because there might face disputes which they might have to mediate. This increases their mediation cost.

However, with digital currencies, all of this cost can be evaded since instead of trust, their transactions are then based on cryptographic evidence or proof.

Through a distributed ledger on a peer-to-peer network, third party authority and central regulation can be avoided. Hence for example if a person pays through bitcoin, they not only benefit from user autonomy but also discretion regarding their purchases.

6. Fostering User’s Trust

Contemporary currencies are backed by legal, monetary, and financial institutions; however, in the case of cryptocurrency, the trust factor is provided through technology. In order to foster user trust in digital currencies, the underlying attributes of technologies involved in making cryptocurrencies trustworthy have to be understood and broadcasted.

This research, when promulgated to the audiences of third world countries, will help in identifying the functionality, reliability, and helpfulness of digital currencies.

Since trust is a crucial element for financial payments and transactions, it would be best to first create awareness of how credible digital currencies are before introducing them into new markets. People should also be allowed to delve into the topic of how cryptocurrency uses encryption to verify transactions.

Through a distributed ledger on a peer-to-peer network, third party authority and central regulation can be avoided. Hence for example if a person pays through bitcoin, they not only benefit from user autonomy but also discretion regarding their purchases.

7. Open Trading/Transfer Options

Cryptocurrency, like any other currency, can also be traded. This means that businesses want to convert their digitally owned assets into cash or currency approved by their local governments; they can do so in a safe and secure environment.

In fact, there are several guides out there online that can help you become a crypto-trader in almost any part of the world.

Trading Options

Source: medium.com

All they will be required to do is find a functional exchange operating within their area and find out the reputation of the exchange.

Next up, they need to study some of the popular exchange rates and see if they are getting the right offer for their digital asset. One of the largest and most popular crypto exchanges is Coinbase which unfortunately is not currently available all over the world.

8. Combating Poverty

Due to the continuous advancement of technology, digital currencies are able to present a model that can indefinitely help developing countries to combat poverty. Not only do digital currencies provide easy access to financial services, but they can also help in growing the economy by promoting transparency as well as reducing corruption.

Source: coindesk.com

Cryptocurrencies have the ability to provide people with financial inclusion which is defined as equal availability of financial services, and this can evidently help in improving their livelihoods. Many developing countries are plagued with this problem since only the rich can afford to lend money which means the poor stay poor, and the rich become richer.

9. Growing Internet & Related Innovations

One of the greatest benefits of deploying blockchain technology on a wider scale is due to its ability to work well with other major technological breakthroughs.

Blockchain can be blended with other technologies to create more resounding impacts not only for financial services but also for the general public as a whole. In fact, blockchain technology can be used to blend in with big data which can result in various new analysis such as the possibility to predict upcoming trading activities.

Furthermore, blockchain technology can also be used to prevent fraud, develop an identity as a service, and various data management innovations.

Plus with IoT (Internet of Things) connectivity and 5G enablement, it can truly shape the future landscape of technology and the entire ecosystem. In fact, there are people out there who include crypto resume skills on their CV to attract employers and apply for job openings.

10. Leading Future Growth Opportunities

Many high-tech companies are already investing in blockchain technology such as IBM that is offering IBM Blockchain technology for businesses that deliver real outcomes. We are already aware of the fact that traditional banking sectors are already considering the adoption of this technology to improve their performances.

One fine example of this is of ReiseBank in Germany that completed instantaneous payments between its clients on a cross-border basis using this technology and completing the transaction within 20 seconds.

Blockchain will also bring in considerable savings for banks by reducing excessive bureaucracy, deliver faster transactions, lower down costs, and augment their secrecy. Students who request professionals to write my dissertation UK are also considering buying their own digital currency and start investing in them.

11. Conclusion

It is quite obvious that technology can be a great way to fight back corruption and fraud within financial markets. Blockchain and cryptocurrency can help in fighting back various factors in third world countries that inflict their growth and potentially stop them from progressing further.

Countries around the world are already making plans to adopt blockchain-based systems to manage their financial markets. It is time that we create awareness in third world countries as well, so they too can join the bandwagon.

GUEST AUTHOR

About the Author

Claudia JeffreyClaudia Jeffrey

Claudia Jeffrey currently works as a Sr. Research Analyst at McEssay. During her free time, she likes to play popular indoor games with family and loved ones.

Share now if you like the article!