The Role of Cryptocurrency in Developing Countries' Financial Inclusion

shahariar1 (71)SOA [Mod]in Steem Alliance • 5 days ago

Steem Alliance

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In this regard, the use of Cryptocurrencies helps in the acceleration of financial inclusion particularly in the developing world. Here are some ways they contribute:Here are some ways they contribute:

Low Entry Barriers: They also enables anyone and everyone with internet connection into a large financial system which is not bound by geographical location, employment status or income level¹.

Decentralization: Unlike other banking systems, these cryptocurrencies are distributed on different platforms which do not discriminate those at the lower end of the society. This inclusiveness benefit the financially excluded and marginalised members of the society.

Cross-Border Transactions: Cryptocurrencies have the potential, to lesser the time taken and cost incurred on cross border transactions and hence the remittance and trade transactions.

Access to Credit: Peer-to-peer platforms that are based on decentralized systems of blockchain allow one to receive lending services without the use of third parties. People can borrow various forms of cash or financial credit, which stem from the individual’s worth in the online market, even if they are not able to secure a credit record.


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Empowering the Unbanked: Cryptocurrencies also help to minimize the people’s direct reliance on the classic banking system. As mentioned earlier, this empowers the people particularly those without bank accounts in the developed countries.

Store of Value: Thus, decentralized currencies can act as more stable money in countries which fiat currencies have high volatility. Assets being inflation and currency devaluation resistant, persons are shielded from loses due to fluctuations in the market.

Financial Innovation: The crypto ecosystem brings innovation closer, thereby urging more and more young people and investors to develop new financial assets and solutions suitable for today’s minorities.


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Summing up, one gets the understanding that cryptocurrencies do possess the ability to decrease poverty rates and improve access to and thus the status of financial services and overall grow, at least in the countries of the third world.

Thus, as we proceed further into this revolutionary sphere, the aims and advantages have to positively impact those in the society who require such assistance.