The financial challenges of developing countries are far from those of western countries. Basic financial inclusion is still a big challenge. The ability to send and receive money without hefty paperwork is a boon for people living in such conditions.
People can access blockchain and cryptocurrencies with a basic smartphone. They require almost zero paperwork and are easy to use. Such technologies can bring financial independence to developing countries through technology and community efforts.
In Africa, Latin America and many other parts of the world. Financial inclusion is still a big challenge. People in many communities work hard but cannot grow prosperous due to a severe lack of banking facilities.
Furthermore, these communities are not privileged in terms of education. They find it much more difficult to fill out numerous forms and paperwork required to open bank accounts. Even the banks are pretty far away from their towns and villages.
Another negative aspect of developing economies is the currency fluctuations that decrease the purchasing power of the poor due to excessive currency printing by the governments.
Crypto as a Solution
The primary motto of blockchain and cryptocurrency is the decentralization of financial institutions. When centralized financial institutions grow too large, they blatantly ignore the needs of the marginalized. Crypto connects these marginalized communities to the entire world.
A major benefit of financial inclusion through cryptocurrencies is the aspect of paperless onboarding. In most cases, a person just needs to download a wallet, set a private key, and they are good to go. This is easier since it can be done anywhere instead of visiting banks to open accounts.
Furthermore, crypto provides many alternatives for people to grow their money through staking, lending and borrowing. These are the expected roles of a true financial system. Cheaper transactions make saving, lending, or borrowing even easier, enabling people to save funds and access those funds when needed.
Crypto can aid many communities to connect with a global financial system free from government monopoly. When technology is adopted at a community level, more social buzz gets created, which results in greater adoption. Subsequently, with greater adoption, prices of coins start to increase due to greater demand, thereby rewarding those who have invested earlier.
Philcoin, for example, is a project that is helping communities get access to global financial systems through cryptocurrencies. Philcoin is created to bring communities closer to financial inclusion with the help of cryptocurrency. It was created to support the 17 Sustainable Development Goals of the United Nations. The receiver gets almost 100% of the donation in seconds through cryptocurrency donations. This is due to Philcoin’s low fees and faster cross-border access.
Philcoin can let people earn rewards through referrals, transactions, and staking. They just launched a new coin staking program that allows users to earn attractive interest while donating a percentage of their profits to a charity of their choice. This staking mechanism is specially developed to create wealth for everyone.
Keeping in mind that high-speed internet is rarely available in remote areas, the PHILApp has been developed to adapt to any internet speed and provide you with a seamless experience. Philcoin is also in talks with several Latin American and South African countries to bring about financial sovereignty through cryptocurrency.
Ripple is one of the oldest cryptocurrencies, founded in 2012 and another great example. It has helped the Colombian government digitize their land records, ensuring transparency in that domain.
As a cryptocurrency, Ripple and its blockchain charge very low transaction fees. This is essential because people in low-income countries cannot afford to pay a hefty transaction fee each time they pay someone. They can further invest the money through staking, which they save while transacting on Ripple.
Cryptocurrency can be a boon to marginalized communities that were cut off from the financial system. With the help of cryptocurrencies, these communities can earn money through referrals and staking. They can borrow and lend money, which should support them to grow. They can connect to global financial systems, which can override the fluctuations in the local economy. Cryptocurrencies like Philcoin and Ripple can benefit every community through financial inclusion.
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