The Crypto Revolution is here - It's just not where you think it is.

Will Mainstream Crypto Adoption See Third World Currencies Become Extinct - Despite Government Intervention and Regulations?

3rd World and "developing" countries, where the economy is on the brink of collapse, will be the first to adopt crypto into the mainstream, and they already are. As those economies begin to collapse, and the governments print more fiat to try to prop up the economy, in an ever-increasing hyper-inflationary cycle, businesses are using cryptocurrencies more and more as a means to bypass the inflationary pressures on supply-side pricing of goods and services from overseas, and even locally. It is a revolution of sorts.

Zimbabwe bans crytpo to fiat payments

I read an article on reuters.com earlier, stating that the Zimbabwean Central Bank has ordered financial institutions to stop processing crypto payments, with a two month ultimatum to comply. It effectively bans them from allowing anyone to trade crypto for fiat, putting a stop to a very active crypto market. In Zimbabwe, crypto is already being used for airline ticket payment, buying goods and services, and even importing used vehicles from Japan.

“The Reserve Bank has directed all banking institutions not to provide banking services to facilitate any person or entity in dealing with or settling virtual currencies,” Reserve Bank Governer, John Mangudya said. “The nature of cryptocurrency transactions make them the currency of choice for money launderers and other criminals.”

This could mean one of 3 things happens:

1. In 2 months time you will not be able to buy goods and services with crypto as businesses using fiat would not be able to accept payments and trade the crytpo into fiat. Most businesses will stop accepting crypto payments, and will be locked into the inflationary fiat economy of their government.
2. In 2 months time you will only be able to buy goods and services with cryptocurrency, because there will have been a mass adoption in crypto usage within the local economy as the preferred method of payments. The crypto would be immune to the government's mass printing of fiat and massive inflationary pressures, meaning businesses would have a more stable digital economy in which to operate. The country's fiat currency would be worth absolutely nothing. This would essentially bankrupt the country completely, unless the government backtracked on its ban.
3. Fiat to crypto trading goes underground, and more peer-to-peer trading occurs where regulation is impossible to enforce. Businesses will continue to accept payments in crypto, and will trade them for fiat in unregulated markets, probably at much higher prices than before.

Change happens first where there is little left to lose

Where economies are weakest, and there is not much left to lose, we will see the people revolt more readily against the government's regulatory pressures, and mass adoption of cryptos will take place. Countries like Zimbabwe and Venezuela are already conducting a lot of business though crypto transactions because of the valueless fiat currency of their own country. Those governments trying to ban it, instead of harnessing the power of the technology for the good of the economy, will find themselves even worse off when those who have very little to lose choose not to be controlled by their own government regulations. It becomes a fight for survival in these countries where their own currency is worthless.

The crypto revolution is closer than we realize, and it may not start quite where we expect it to. It looks like it may have already started in some places...

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