James Butterfill, who is an investment strategist at CoinShares, the largest crypto exchange traded product provider in Europe, and Marius Reitz, the general manager in Africa of crypto exchange Luno, have both discussed the social benefits of bitcoin for the developing world.
The two technocrats said In third-world countries, there is the emergence and take up of Bitcoin, stressing that the bitcoin volume growth is massive.
Meanwhile, according to a Statistics survey of global consumers in February, nearly one in three of those polled in Nigeria said they owned or used cryptocurrencies, versus just 6 out of every 100 in the United States, in 2020.
However Salvador’s recent decision to make bitcoin legal tender is an example of how developing countries are using crypto.
Unfortunately, the World Bank recently said it would not work with the country on its cryptocurrency plans because of how volatile it believes these assets are.
In view of this, the amount of bitcoin that changes hands in emerging economies is now exploding trading volumes in Latin America has risen. In particular, Brazil have risen 2,247% year-on-year in 2021, while in Venezuela, where political turmoil has created hyperinflation and economic crisis, crypto trading volumes have risen 833% in the last 12 months, according to data provider Kaiko.
However in Nigeria, the most populous nation in the black continent has Africa’s largest economy, as trading volumes have risen 128% year on year, and in Turkey, where inflation and economic decline have hit the lira, they’re up 143%, based on Kaiko’s data.
Furthermore, Bitcoin has been trading between $40,000 and $31,900 over the last month, but has moved between lows of $30,000 and to highs of as much as $63,500 over the course of 2021. Despite its volatility, consumers in developing countries love it.
There are about 1.7 billion people that are considered “unbanked”. However, around 48% of the global population has a smartphone and that percentage, in theory, have access to the internet, and therefore, cryptocurrencies, Butterfill said.
In Latin America, only 30% of the population over the age of 15 have a bank account, according to 2019 data by consultant Mckinsey.
“I think that really is a positive thing that bitcoin’s helping the unbanked be bankable,” Butterfill said.
Meanwhile, Cryptocurrency use has also grown in countries like Ghana, Kenya, South Africa, Botswana and Zimbabwe.