For the longest time, it seems like the world’s poorest have being neglected. Hit day after day with misfortune, it seems like the world — with its corruption, high inflation, high unemployment rates and lack of opportunities — is rigged against them. It is global issues like these that the blockchain platforms seek to address. What follows are a few ways blockchain can be of use to those who need it most.
Reducing Remittance Cost
If you have ever sent money to a relative overseas, you know that intermediaries like Western Union, Uni Transfer etc. collect high transaction fees. One of the benefits to using cryptocurrencies instead of fiat (cash) money is transferring money anywhere with no hassle, at zero or low cost. Blockchain platforms allow users to send money at a lower rate than conventional money transfer services.
Enhancing Financial Inclusion
More than 2 billion people worldwide are unbanked, according to the World Bank, meaning they have no way to open a bank account. Even those in developing countries that do have bank accounts are underbanked, meaning they don’t have access to certain advantages like participating in global commerce. The benefits of using cryptocurrencies can empower small businesses so they can take part in global imports and exports. Another aspect of financial inclusion that developing countries lack is access to international payments, which can help small businesses immensely.
A difficulty that most developing countries seem to go through is the corruption of those in power. With data being stored on a blockchain platform, the public will be able to monitor the way state funds are being allocated, leading to a more transparent contract system. The blockchain technology will also help in the election process, making the electoral process more transparent, with lack of transparency being one of the reasons most of the developing countries have corrupt rulers.
All eyes are on this advancing technology as people look to see where blockchain will take them. It will be exciting to see how far developing countries will go to apply blockchain solutions to address their problems.