Cryptocurrency can promote economic welfare in areas lacking banking services

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The global economy is rapidly developing, but financial exclusion remains a long-standing issue. A report by Visa in 2022 shows 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 opportunity.

Bitcoin can turn the tide. By enabling more secure peer-to-peer transactions without relying on unstable local currencies, cryptocurrency can help businesses protect the value of their revenue. Cryptocurrency payments are less susceptible to inflation rates that lead to the devaluation of cash. This is invaluable for regions where central banks are striving to maintain economic stability.

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

Cryptocurrency payments: The interconnected future of merchants and cross-border transactions

The rising rate of merchants adopting cryptocurrency is also fostering cross-border growth. Cryptocurrency can provide lower fees and faster settlement times, making traditional SWIFT-based banking systems seem increasingly outdated. Especially for small businesses, cryptocurrency payments allow for more efficient transactions, avoiding excessive fees and reducing the risk of currency 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, which will have an inevitably positive impact on the broader economy.

Integrating cryptocurrency into the merchant ecosystem of underbanked areas is not just a technological shift; it is an opportunity to drive economic welfare and promote inclusivity.

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