A common reason developing countries turn to cryptocurrency is their country’s economic instability or the lack of banks. With some exchange channels allowing people to exchange their cryptocurrency for free, cryptocurrencies can be an effective way for people to send and receive remittances to developing countries.
They can also be a way for the population to avoid the Government stealing from them. Any person can buy a Bitcoin coin section even if they cannot afford to make the coin a good investment idea. The reality of purchasing Bitcoin that many poor people have to face is that it requires technology.
There are several bits of technology that you are going to need to buy Bitcoin. The first and most apparent device necessary is a mobile phone. According to Pew research 2019 data, around three billion people worldwide have access to mobile phones.
The growth in mobile phone usage has not been equal. The majority of advanced economies have access to a mobile phone, whereas only 45% of emerging economies have access to a mobile phone.
Only recently has free phone access become a phenomenon due to the pandemic. In Lagos, Nigeria, the Guardian documented that free phones have been distributed to 20,000 children, and the goal is to reach 300,000 kids without a phone.
It is unlikely that, in the case of Nigeria, young people would think to use their free phones to allow their parents access to crypto. What the free phone scheme in Lagos shows is that a free phone scheme is possible.
Not just any phone is necessary to buy Bitcoin but a smartphone. It would help if you had a wallet to store Bitcoin coins as many recommend this as the safest way to keep them, and you need a crypto exchange to buy them. Most crypto wallets function as apps.
PayPal is advancing and hopes to make Bitcoin mainstream. PayPal may extend their service far and wide. Currently, PayPal is operating its crypto services in the US, and people can buy coins, sell, and hold their crypto assets via PayPal, but you cannot use the service to purchase goods.
This means individuals may incur costs from selling their coins via PayPal. There are some free crypto exchanges and others that were once free but have now started charging people. Hopefully, in the case of developing countries, exchange services will remain open and free.
Latin America is on the rise for using cryptocurrency. Chain Analysis released data suggesting that digital currencies could completely transform Latin America, home to many developing countries.
What helps is that, according to Statista, in Latin America, there are 510 million mobile phone subscriptions, and the figure is predicted to rise. Latin America is evidence of the supposed power that Bitcoin could have in countries without a banking system, given they have access to the technology required.
Up to almost 2 billion people in the world are unbanked, which means they cannot participate in the international economy. Making cryptocurrencies accessible worldwide would provide significant support and a lifeline to all the world’s unbanked populations.
To achieve this, everyone would need access to a mobile technological device. With this accessibility set in place, Bitcoin would provide a reasonable financial banking option worldwide.