Web3 Could Be The Future - Depending On The Demography

The campaign about how web3 is the future of the global financial system is unceasing. And daily, we see more remarks, articles, and publications on how the centralized financial system is ineffective in its rights.

While there might be some truth considering the change web3 offers, some of these claims and conclusions are far-fetched.

The questionable part of it all is the citings of how web3 would have been a better approach or system to managing financial crises like the current cash scarcity in Nigeria.

The feasibility of such is a hundred-to-one shot for several reasons, many of which depend on the country’s socio-economic and demographic characteristics.

Web 3.0 is a system that thrives on existing infrastructure. Before we conclude on how it could be the future for all, we should also consider how these infrastructural factors could contribute to the improbability of such happenings.

Nigeria’s Cash Scarcity Piques Interests In Web3

On the 16th of February, 2023, I came across an article published on crypto potato. The title rang, “Why Bitcoin? Nigeria faces violent protests amid cash scarcity.”

The author discusses how the cash withdrawal issues in Nigeria had made a strong case for Bitcoin as a better store of value and digital assets and how it is a censorship-resistant asset that better promotes decentralization.

Also, she highlights how Bitcoin fixes the issues by offering citizens access to instantaneous funds at cost-effective charges.

The issue with web3 propaganda is that many enthusiasts forget that people cannot embrace what they do not understand or cannot fathom.

In a country where citizens do not welcome easy centralized banking transactions due to ignorance and illiteracy, how do you integrate web3 into such a system?

How do you convince them that cryptocurrencies are better alternatives or ideal stores of value?

The issue of cash scarcity in Nigeria is indeed appalling. Still, the debate about web3 solving this is unsubstantial because when you consider the larger population of people in this location, we can agree that it’s a folktale. And it might not be possible until the next century or decade.

Development and Demography: Two Irrefutable D’s Of Web3

The actual conversation when it comes to the adoption of web3 should be whether these countries are developed enough to embrace this technology.

Only a small percentage of Nigerians accept online transactions and digital payments, while a larger percentage are still wary and skeptical of such means of payment.

This is largely attributed to incompetent banking systems and recurring failed transactions from local banks. Introducing web3 into such a system is laughable because it isn’t possible at this age and time.

The average trader, market woman, or transport worker barely accepts a centralized digital payment using local banking systems. So, the trillion-dollar question is, how do you introduce web3 to such persons?

According to statistics, the literacy rate for Nigeria is 62.02%,  meaning that close to 38% of the population is more close-minded to new technologies and skeptical about change.

Now, 62.02% of this literate population includes older generations that are equally rigid to innovations and slow to understand how recent tech works. This brings us to another problem: getting these older generations to know how to operate these systems.

Mind you, the complexity of web3 systems is still, albeit confusing to the younger generations. How much more older adults still struggle to use centralized digital banking systems.

Let’s Also Talk About Infrastructure

Internet access is another challenge that would hinder the adoption of blockchain technology as a tenable financial service in Nigeria.

The country’s average fixed internet speed is ranked 151st amongst 182 countries, making it one of the slowest internet access among many others. Electricity comes next as a problem in terms of the country’s infrastructure.

According to the Energy progress report of 2022, Nigeria comes lowest in access to electricity, with about 92 million persons lacking proper access to power. These factors are basic infrastructural needs that could infringe on adopting new technologies like web3 in the country.

Web3 needs seamless infrastructure to drive adoption, and it is clear enough that Nigeria is lacking in providing these infrastructures presently.

Take Away

The holy grail of crypto adoption in developing countries like Nigeria is deeply rooted and goes far beyond the possibilities of the technology solving feasible problems. It depends mainly on the population, the people’s mindsets, development, infrastructure, and everything in between.

And until these factors are improved, the possibility of adopting web3 in such a system will remain improbable.