The Social Impact of Cryptocurrencies on Developing Countries

Link

For some days now Cryptocurrencies have been gaining popularity steadily in the whole world, with so many people who are investing and also using digital currencies which it include Bitcoin, Ethereum, and also Ripple. For the developed countries the have been so fast to face the new form of currency, the developing countries are more cautious in their adoption. Meanwhile the social impact of cryptocurrencies on the developing countries is a thing that need discussion, because it has that future to affect the lives of many people.

One of the main merit of cryptocurrencies in all these advancing countries is their potential to create all these service financially to those people who are financial services to those who are unfinancial or undeserved. In plenty of advancing countries, traditional banking services are restricted, which makes it hard for people to have assess to basic financial tools such as having savings accounts and applying loans. Cryptocurrencies offers a decentralized and secure choice to traditional banking, making people to have the ability to send and receive money without the use of a bank account.

Link

I will say cryptocurrencies it really help to reduce the high cost of remittances for the families in growing countries.
So many people in the develop countries put their hope on remittances from family members who are working abroad to help themselves financially. Meanwhile the traditional money transfer services sometimes may be expensive, with fees sometimes reducing to the amount of money that the recipients receive. Cryptocurrencies sometimes gives cheaper and faster way in sending money across borders, at the same time saving families significant amounts of money in fees

To look at it on the other side, the cryptocurrency volatility can also bring an increase to individuals in advancing countries. The worth of cryptocurrency can change rapidly, leading it to a high financial loss for those people who are not well oriented on how to run the market. To add, the lack of regulation in the space which can make it more simple for all this fraud to take opportunity of unnoticed individual, taking it to all this financial fraud and scam

CONCLUSION

Link

In my understanding I will say the social impact of cryptocurrencies on the developing countries is such a complicated issue with both potential benefits and also risks involved.Meanwhile cryptocurrencies at the same time have that future at hand to change the way the people in developing countries access their financial services, they came with their own personal set of challenges that must be seen. As cryptocurrencies keep gaining traction round the world, it is very important for the policymakers, the financial institutions, and also their individuals to stay updated and also educated about the way to safely and carefully use digital currencies well.