Interest in and demand for crypto has been rising in developing nations for some time now.
This has presented a problem in that while mobile phone usage is now high in many parts of the developing world, most citizens of such countries still do not have reliable access to crypto.
Thankfully, this has begun to change.
One of the larger cryptocurrency news stories in the second half of 2018 has been about the integration of developing nations and cryptocurrency.
Paxful Bringing Developing Nations Cryptocurrency
Paxful, a bitcoin exchange, has plans to bring crypto to the unbanked in inflation-torn Venezuela.
We have previously written about the tragic situation in Venezuela with the Bolivar entering hyperinflation and how some Venezuelan citizens have turned to crypto as a financial lifeboat of sorts.
Avesta can also be part of the solution in preventing catastrophes like this from happening in the first place. The demand for crypto in Africa shows that it can be done.
In June of 2018, the Paxful exchange saw over 770,000 bitcoin trades occurring in Nigeria and over 50,000 in Ghana. And that’s only two African nations interacting with a single exchange. These numbers provide a glimpse into the great potential for developing nations and cryptocurrency.
Unbanked populations of countries being ravaged by the effects of runaway inflation stand to benefit the most from the integration of cryptocurrency and blockchain technology.
We’ve also written much about the potential crypto market in Africa . In addition to having extraordinary demand for cryptocurrency services, the African continent has the largest population of unbanked adults in the world.
Meanwhile seen on the streets of Nairobi….😃Driven by the volatile fiat currencies, the enthusiasm, hype, and the slow but progressive acceptance of #crypto and #blockchain in #Africa is exciting #Bithelaofficial #Remittances #FinancialInclusion pic.twitter.com/N9avqNYDzm
— Pesabase (@pesabase) June 7, 2018
Coinbase Charity to Bring Developing Nations Cryptocurrency
In addition, Coinbase recently announced the creation of a charity aimed at bringing developing nations cryptocurrency. The charity intends to donate cryptocurrency to those in developing nations who are not currently able to participate in any financial system.
Brian Armstrong, CEO of Coinbase, gave the following statement, as summarized by Coindesk:
“In a release, Armstrong wrote that “most people I respect and know in the crypto ecosystem believe we have a moral responsibility to shepherd this technology forward in a way that allows it to reach its full potential.” He cited lower fees, reduced transaction times, micropayments and mobile device-friendly payment systems as some of the advantages for blockchain technology.”
It’s interesting to note that Avesta fulfills all of the advantages listed. “Lower fees, reduced transactions times, micropayments and device-friendly (including point-of-sale) payment systems” are all features of Avesta.
According to a 2012 report issued by The World Bank , the “unbanked,” or people without access to traditional banking services, total approximately 2.5 billion. That’s about one-third of the world’s present population.
Without access to a financial account, it’s unlikely that an unbanked person will have the means by which to escape poverty. And three out of four people that are in poverty are also unbanked, according to the same World Bank report.
Avesta – the Developing Nations’ Cryptocurrency
Avesta aims to provide a means by which the unbanked can use crypto as well. Being easily integrated into point-of-sale systems, merchants everywhere can use Avesta tokens as a means of payment and receipt.
The unbanked in Africa and elsewhere will benefit from Avesta as its low transaction fees allow for financial actors of all sizes to take part in its financial ecosystem.
On top of its ease of use and utility value, Avesta will also solve the legal issues surrounding the use of crypto. From the Avesta white paper:
“By partnering with legal entities around the world, Avesta will launch the development of a legal framework for wider adoption of blockchain technologies and payment solutions.”