Cryptocurrency can promote economic welfare in areas lacking banking services

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The global economy is rapidly evolving, but financial exclusion remains a long-standing issue. A report from Visa in 2022 revealed that 2.1 billion people worldwide still do not have access to or fully enjoy digital financial services. This gap often traps individuals and businesses in underbanked areas in a cycle of limited growth and opportunities.

Bitcoin could change the game. By enabling safer peer-to-peer transactions without relying on unstable local currencies, cryptocurrency can help businesses protect the value of their income. Cryptocurrency payments are less susceptible to the inflation rates that lead to cash devaluation. This is invaluable for regions where central banks are struggling to maintain economic stability.

This shift is already becoming evident. According to a Deloitte survey conducted in 2022, 93% of merchants accepting cryptocurrency reported a positive impact on customer engagement and satisfaction metrics. As more merchants recognize that cryptocurrency enables them to offer more efficient transactions, consumer trust has also been enhanced. In the long run, this will stimulate more sustainable economic activity.

Cryptocurrency payments: An interconnected future for merchants and cross-border transactions

The increasing adoption of cryptocurrency by merchants is also driving cross-border growth. Cryptocurrency can offer lower fees and faster settlement times, making traditional SWIFT-based banking systems seem increasingly outdated. Especially for small businesses, the ability to transact using cryptocurrency allows for more efficient dealings, avoiding excessive fees and reducing the risks of exchange rate fluctuations.

Moreover, decentralized currencies can ensure transparency in financial transactions and minimize corruption, which is crucial for economic stability in low-income areas. The resulting shift towards cryptocurrency will ultimately lead to the expansion of local businesses, having an inevitably favorable impact on the broader economy.

The integration of cryptocurrency into the merchant ecosystem of underbanked areas is not just a technological shift, but an opportunity to promote economic welfare and foster inclusivity.

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