Bitcoin Is Being Adopted in These Developing Countries
The past decade has proven rather exciting and challenging for bitcoin. It has been tricky for the leading cryptocurrency to gain mainstream adoption, although momentum has begun to shift. Various developing countries now openly embrace it for multiple reasons, confirming the appeal of this technology and the financial alternatives it represents.
Developing Countries Flock To Bitcoin
The core principles of bitcoin have not changed since the day Satoshi Nakamoto introduced the project's whitepaper. Bitcoin is peer-to-peer digital cash suitable for transactions, payments, etc. Although BTC has become a speculative asset in the minds of most, those core values can still change people's lives for the better. Developed countries can see bitcoin as speculative because they have existing payment rails that provide essential financial services, but things are very different in developing regions.
A recent study conducted by Forrester Consulting on behalf of AAX confirms the public perception of bitcoin has changed in those developing regions. AAX continues to play a critically important role in the bitcoin and cryptocurrency space, making it crucial for them to evaluate emerging markets. With this research, the company gained more insights into BTC use across Africa, Latin America, the Middle East, and Southeast Asia. These are all regions where bitcoin can positively impact people's daily lives in multiple ways.
The study finds that bitcoin adoption has increased significantly across these emerging markets. While some still treat bitcoin as an investment, users in the Middle East and Southeast Asia use it as a means of money management. Bitcoin can empower people to seek financial independence, save money, invest in other markets, and hedge money. Moreover, users in Latin America and Africa use BTC for transactions and payments, two of the cryptocurrency's core use cases.
There is still much room for growth where bitcoin adoption is concerned. Dedicating more time and resources to educational ventures will change that narrative for the better. Many still struggle to grasp how bitcoin works - and its associated risks and potential rewards - or why this cryptocurrency even exists. Answers to those pressing questions are in high demand, as it remains a familiar challenge on the path to mainstream bitcoin adoption.
Overall Growth Is Promising
The study by Forrester Consulting and AAX points out how more people in emerging markets use bitcoin to invest, complete payments, or send transfers. That remains a bit tricky due to BTC's volatile value, but more people have learned to understand the risks. Even so, one of the bigger hurdles to overcome is the responsibility of owning bitcoin, as there is no government or centralized company to fall back on if something goes wrong. That responsibility is part of achieving financial freedom.
The ongoing growth of bitcoin in developing countries is influenced by many factors. Per the report, there are numerous ways for bitcoin to become more prominent:
- Inflation in the UAE - up to 14.9% - has made consumers more aware of the need for alternative economic solutions, driving more people to bitcoin.
- In Bahrain, the Central Bank of Bahrain introduced a regulatory sandbox for bitcoin companies to thrive in. That also fueled broader bitcoin payment adoption by local businesses.
- Users in Turkey appreciate the safety and empowerment bitcoin provides them, as users keep their money under their control at all times.
- Southeast Asia is a prominent region for bitcoin due to macroeconomic events (India's Rupee hit a record low against the USD), dissatisfaction with existing services, and how bitcoin is cheaper to use while providing pseudonymity and innovation.
- In the Philippines, bitcoin provides a much-needed alternative to scams and hacks involving traditional payments. Additionally, locals use BTC to pay for goods and services, renting motorcycles, etc.
- The Central African Republic adopted bitcoin as an official currency, following in the footsteps of El Salvador.
- In Uganda, bitcoin gains momentum due to being a secure payment system and not involving intermediaries, both of which are a welcome change of pace.
- In regions like Kenya, bitcoin remains a go-to solution for intra-African remittances, a relatively neglected industry segment.
- Most countries in Latin America benefit from bitcoin's potential to save money, receive payments, and other management purposes. Traction keeps accelerating in El Salvador, Brazil, etc.
It is impressive to see so many countries pay attention to bitcoin and its various potential implications. While investing remains a primary use case across developing countries, the leading cryptocurrency builds momentum across money management, payments, and helping people achieve financial independence. Whether due to macroeconomic developments - inflation, falling FX rates - or dissatisfaction with existing solutions across payments and banking, bitcoin adoption keeps accelerating in developing countries.