Ever since Bitcoin’s launch in 2009, cryptocurrencies and the blockchain technology backing them have proven to be highly utilitarian, so far as showing the potential to replace the traditional financial system all over the global markets. Cryptocurrencies provide a wider access to capital and financial services for the general population, and they indeed have the potential to enable economic growth across the world – especially in developing countries.
If you have wanted to buy cryptocurrency in India in recent times, you might be aware of how India is among the fastest-growing crypto markets. The Bitcoin market in India, the most popular one by far, has been experiencing a massive rise in peer-to-peer activity and has opened up a whole new range of opportunities for early adopters.
In this post, we explore how cryptocurrencies can advance developing countries like India, and potentially meet the many requirements of the current economy and the individual traders who would like to buy cryptocurrency in India.
So, How Can Developing Countries Benefit from Cryptocurrencies?
- Reduced Corruption, Increased Transparency:
In economically developing countries, corruption is directly linked with poverty. Therefore, to ensure economic development and take an impactful step towards eradicating poverty, it’s important to eliminate corruption.
All crypto transactions performed on a blockchain are recorded on a digital, distributed ledger available for anyone to see on the blockchain. All users are identified by their digital signatures as well, so the increased transparency of blockchains can prevent corruption.
Additionally, there’s no central authoritarian figure controlling the blockchain systems, therefore they can not be manipulated either; this decreases any threats of corruption by a considerable margin. Moreover, citizens can use the recorded data on the blockchains to monitor where state funds are being oriented, and cryptocurrencies would also make it easier for governments to track their spendings.
- Reduced Transaction Time and Costs:
Cryptocurrencies offer worldwide financial transfers without requiring organizations in different countries to act as intermediaries, so crypto transactions are swifter than central bank-issued currencies.
Plus, cryptocurrencies do not need any expensive infrastructure to operate: there’s no need to pay employee wages or utility bills, unlike centralized financial institutions like banks. Therefore, the costs associated with cryptocurrency transactions are a lot lesser compared to the fees and charges common to fiat currency transactions.
However, the trading fees vary depending on the platform you choose to buy and trade cryptocurrencies. For instance, if you want to buy cryptocurrency in India, WazirX allows you to do so with minimal charges. Plus, the platform also offers lightning-fast transactions!
- Greater Financial Inclusion:
As per a recent study conducted by the Illinois News Bureau, around 190 million of India’s population still remains unbanked, despite the various financial inclusion initiatives undertaken by the government. This is due to a variety of reasons, including location issues, the requirement of higher minimum balances to open bank accounts, the lack of necessary documentation, and the high banking fees.
However, anyone with a semi-decent internet connection and a smartphone/computer can buy cryptocurrency in India and trade, since cryptocurrencies are purely software-based and can be accessed through cryptocurrency wallets, without requiring any bank accounts. So cryptocurrencies also enable widespread financial inclusion.
- Easier Cross Border Payments:
As mentioned before, cryptocurrencies are decentralized, so they are not watched over by a central institution, neither are they restricted to a specific geographic area. This means with cryptocurrencies, cross border payments get a lot easier; and cost effective too.
This in turn helps even small and medium businesses from developing countries gain better financial connections with the rest of the world, and access the global markets when they want to expand, as customers can easily pay companies in other countries with cryptocurrencies.
- Cryptocurrencies and Inflation:
Inflation is an economical issue the general populace in developing countries might have to face at any point. For example, the Venezuelan currency has become essentially useless because of the hyperinflation caused by socio-economic and political crises, as well as failed macroeconomic policies.
Cryptocurrencies, on the other hand, have emerged as an alternate and more stable currency that can hold their value even when traditional currencies are affected due to inflation and are almost worthless for the purchase of goods/ necessary services. As proven by the cryptocurrency petro (₽) or petromoneda, launched by the Venezuelan government back in 2018, cryptocurrencies can give back control to individuals in developing countries suffering from high inflation.
In conclusion, even though cryptocurrencies haven’t broken out into the mainstream markets yet, it’s undeniable that as developing countries gradually gain better access to the internet and smartphones, cryptocurrencies open up a horizon of brand new opportunities. Besides, the need for economic growth and complete financial inclusion in countries such as India can not be ignored, and so it’s only a matter of time until cryptocurrencies find a way into our daily lives and become the norm, replacing fiat currencies.
Where can you buy a cryptocurrency in India, you ask? Well, you can do that through a cryptocurrency exchange like WazirX. To find out more about how to buy cryptocurrency in India, you can visit our website here!
Also you can download the app and Start Trading Now!
Android App – Cryptocurrency Exchange
iOS App – Cryptocurrency Exchange