Understanding the Global Digital Divide: Can Crypto Bridge the Gap?

I don't think anyone would be surprised if I said the digital divide exists. How did we end up here? 

Well, the digital divide is fueled by several key factors, primarily impacting developing countries where limited access to digital technology and internet services remains a prevalent issue. Unfortunately, this disparity extends beyond basic connectivity and affects the adoption of transformative tech such as crypto and Web3.

Inadequate infrastructure and limited broadband coverage play a significant role in hindering widespread digital access. Furthermore, economic challenges, including poverty and income inequality, often limit individuals' ability to afford and maintain digital devices and internet subscriptions.

At the core of this issue lies an uneven distribution of computing devices and internet accessibility. While some individuals enjoy the convenience of high-speed internet on their home computers, others lack access to even the most basic computing devices. The disparity is evident, with varying degrees of connectivity across regions.

Back in 2005, internet usage in the USA and Europe had reached an impressive 40-50%, whereas African countries lagged behind at a mere 2%. While progress has been made since then, with America and Europe now boasting a 90% internet usage rate, Africa still grapples with a 40% figure. Although growth is evident, the digital divide remains a substantial hurdle to overcome.

To illustrate the magnitude of this gap, let's consider some eye-opening examples. In Norway, a staggering 96% of the population uses the internet, whereas in Somalia, the figure plummets to a mere 2%. When it comes to download speeds, the disparity is equally striking. In Yemen, it would take an average of 30 hours, 1 minute, and 40 seconds to download a 5GB movie, while in Japan, it would take just 5 minutes.

Inequality can also be identified in the field of banking services, which are now inextricably linked with technology.

Regionally, stark inequalities emerge in the realm of financial inclusion. In the Middle East and Africa, a striking 50% of citizens remain unbanked, while the average in South and Central America stands at 38%, Eastern Europe at 33%, and Asia Pacific at 24%. In contrast, a remarkable 94% of citizens in Western and Central Europe are considered banked.

One area in which crypto can aid financial inclusion is bank transfers – particularly cross-border, as is often the case with breadwinners working in a different country from the rest of their family. Traditionally, what should be a simple process is both costly and beset by bureaucratic compliance hurdles. However, crypto has the capacity to simplify this, slashing cross-border fees and allowing people to make overseas transfers instantaneously.

Low transaction cost, low level of entry, worldwide high velocity, and anonymity of the transactions are the main advantages of cryptocurrency use, making it an attractive transaction medium for emerging markets.

All eyes on map. More than 21% of crypto asset owners from the CIS countries use digital currencies to pay for goods and services, according to a Binance survey. It is forbidden to use crypto as a means of payment in Russia, but in other CIS countries, a number of companies have already begun to accept crypto along with fiat money. 

To help bridge the gap, Choise.com took the initiative to launch a pioneering bank card. It allows users to conveniently spend their preferred cryptocurrency worldwide.

As we consider the roadblocks and prospects for Web3 adoption in both emerging and developed markets, accessibility emerges as a key hurdle. Web2 applications like Instagram and Facebook have established user-friendly experiences, whereas Web3 projects often appear daunting and inaccessible to the general population. Achieving widespread adoption necessitates simplifying and streamlining the user experience, making crypto and Web3 technologies more intuitive.

While emerging markets struggle with limited internet access, even developed countries face similar hurdles. Consumer adoption of crypto poses significant challenges, as a considerable number of buyers admit to lacking understanding in this domain. And this knowledge gap is concerning.

Additionally, in developed countries, issues of mistrust and government regulation come to the forefront. However, amidst these challenges lie opportunities, particularly in addressing users' needs. Crypto has the potential to offer solutions to numerous problems, provided that Web3 becomes more user-friendly and beginner-oriented.

By addressing these challenges head-on and seizing the opportunities, we can pave the way for broader Web3 adoption, not only in developed nations but also in emerging markets, unlocking the transformative potential of this technology for all.