Blockchain and cryptocurrency in developing countries

Blockchain and cryptocurrency in developing countries

Economic backwardness is associated not only with poverty but also with the lack of access to a formal economy. Could the blockchain help to solve this problem in the third-world countries?

Blockchain technologies can change everything. Already, the cheapest smartphones with applications like BanQu or Humaniq allow you to make payments and transfers even to those who do not have access to banks. Also, for the residents of the poorest countries, these technologies can become a real bridge to a better life.

For example, IBM has already agreed with large banks on the creation of a system of international cryptocurrency transfers based on the blockchain. So if now such transfers can take several days, then the new system will work almost instantly.

The payment system MasterCard also introduced its blockchain technology for cross-border payments. The company cooperates with 22 thousand banks around the world, and the interest of such a giant to the blockchain can become a signal for the whole market.

For emerging countries, the spread of blockchain may be a real miracle. For example, it will help microfinance organizations significantly reduce the cost of issuing loans. Peer-to-peer lending platforms (in which private individuals and lenders act as lenders and borrowers) can use smart contracts to control payments and manage investments. All this will make financial services much more accessible.

Recently, the head of one of the largest financial companies in Africa — Alexander Forbes Group Holdings — said that he sees the advantages in using blockchain technology in corporate operations. So, executive director Andrew Darfur considers it an exciting technology, which is beginning to evaluate and find more and more local businesses. The company is registered in South Africa. Besides, its services are used in Botswana, Namibia, Kenya, and Zambia. Also, the company's activities are approved by local regulatory bodies.

There are already several projects aimed at resolving individual problems in the countries of the third world. For example, the Startup Input Output HK, which created the Cardano platform, plans to provide its benefits to customers from developing countries in Asia and Africa.

Cardano blockchain will be used in Ethiopia to manage the supply chain of coffee. IOHK will also assist Ethiopian authorities in training young developers who will then be hired to create blockchain-based farming solutions based on Cardano.

The technology will also be used to register land in Rwanda, Kenya, and South Africa, and some even want to use technology to maintain a variety of wildlife.

Also, IOHK intends to use the Cardano blockchain to track beef supplies in Vietnam and Cambodia. Another developer of Cardano, Emurgo Hong Kong, plans to issue academic certificates using a blockchain.

Zimbabwe is a country in Africa that has no access to the sea, but now it's not about that. Representatives of the Reserve Bank of the country announced their intention to study the blockchain and subsequently apply it in the sphere of public administration.

John Mangudia, who holds the post of Central Bank Governor, added that, following the Central Banks of other countries, Zimbabwe is also ready to take advantage of the so-called 'developing global innovation'.

The potential of this market is enormous. However, to realize this potential, it is necessary to establish interaction between all players, including banks, payment systems and mobile operators.

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