Cryptocurrencies, a Way to Help Consumers in Developing and Unstable Economies
By now, even the people that do not hold cryptocurrencies for one reason or another are familiar with them, this is, their power, and their potential as valuable assets. It is not a coincidence that the market cap in the industry has grown substantially in the past few weeks, and that each day, more people jump in the crypto bandwagon.
However, what most observers may not realize is that crypto also represents the future of money for consumers in countries with unstable economies. That is precisely what OKEx, which is one of the largest cryptocurrency exchanges by trading volume, thinks about the potential of these assets.
OKEx is an exchange platform based in the very stable European country of Malta. By this time last year, the ecosystem became the single biggest exchange by reported turnover. It serves a large market of traders, offering a suite of enticing tools. It has been around the industry since 2017.
A Similar Sentiment
In the same vein, and, much like OKEx, other exchanges, platforms, and crypto services providers believe that these assets represent not only the present, but also the future of money, transactions, and finances, especially in developing or unstable nations.
Officials at OKEx believe that digital currencies have the capability of providing freedom to consumers in nations where the overall state of the economy is considered unstable. The reason behind this is mainly that inflationary rates make fiat payments nearly impossible and thoroughly impractical.
Digital Dominance
The platform identifies an era of digital technology “dominance,” in which the more traditional systems and processes are having a hard time adapting to the incredible demand for financial services all around the world. And it is a fact that a large portion of these demands come from developing countries.
These nations are known for having unstable banking services, and the access to them is not always guaranteed, or easy for that matter. Other problems may arise in these countries, as well, such as high costs for currency exchanges and remittances for people to send money to their homes. These situations often result in inequalities, which can be attacked by cryptocurrencies and the blockchain technology.
It is staggering that almost 2 billion adults (1.7 billion, to be more precise, according to 2017 data from the World Bank) are not receiving banking services and do not have an account. However, the crypto fever is evident in nations with high inflation and unbanked people rates.
Taking the Power to the People’s Hands
Whilst it is true that the lack of a proper regulatory framework has been a significant stumbling block in specific locations in the past (such as India, for example) and still at present, the blockchain technology applied in the crypto space has the potential of taking the power to the people’s hands when it comes to financial services, eliminating waiting times in currency exchanges and remittances, as well as third-party payment networks and systems.
Some notable fiat currencies have lost steam at the same time that people become more and more interested in crypto assets, which has resulted in a crisis of the former around the planet. Experts firmly believe that the planet’s financial environment will be based on the blockchain model, which is welcome news for the unbanked and the people struggling with inflation and other related situations in third-world and developing nations.
By Andres Chavez