The post Crypto can boost economic welfare in underbanked regions appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. The world’s economy is rapidly evolving, yet financial exclusion remains a persistent issue. A 2022 report by Visa revealed that 2.1 billion people globally remain unserved or underserved by digital financial services. This gap often traps individuals and businesses in underbanked regions in a cycle of limited growth and opportunity. The good news? Emerging technologies, especially cryptocurrencies, present an opportunity to rewrite this narrative. Merchant adoption of crypto payments has the potential to significantly uplift the welfare of these underbanked economies. Inflation is crippling cash It is getting harder and harder to rely on cash in economies with significant inflation and price instability. Local currencies have depreciated so much in nations like Argentina, Venezuela, and Zimbabwe that regular cash transactions are fraught with inefficiencies. Stablecoins that are linked to fiat currencies, such as Tether (USDT) and USDC (USDC), or cryptocurrencies like Bitcoin (BTC), can save the day. In enabling safer, peer-to-peer transactions without relying on erratic local currencies, crypto can help businesses protect their revenue value. Crypto payments are less susceptible to the inflation rates that cause cash to depreciate. This is invaluable to regions in which central banks struggle to preserve economic stability. The shift is already evident. According to a 2022 Deloitte survey, 93% of merchants accepting crypto reported positive impacts on customer engagement and satisfaction metrics. As more merchants recognize that crypto allows them to offer more efficient transactions, consumer trust is enhanced. In the long term, this galvanizes more sustainable economic activity. Crypto payments: An interconnected future for merchants and cross-border transactions Rising rates of crypto adoption among merchants are also bolstering cross-border growth. Crypto’s ability to provide reduced rates and faster settlement…

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Filed under: News - @ December 17, 2024 12:23 pm