Can Cryptocurrencies Help The World's Poorest People?

Cryptocurrencies such as Bitcoin, Ethereum, and YoCoin are famed for their security and their inherent removal of the middleman in a financial transaction between two parties. Now, with the total value of all Bitcoins above the $6 billion mark, there is an understanding that cryptocurrencies are only going to soar in usage across the world. As of now, the biggest supporters of cryptocurrencies are cybergeeks and forward-thinking businessmen, but the technology is most likely to benefit the world's poor and unbanked.

The best aspect of a cryptocurrency is that it does not involve an intermediary, effectively eliminating the banking sector that charges stupendous for international transactions. In addition, the public ledge of most cryptocurrencies allows people to verify and analyze transactions with ease. The address of every recipient and sender is permanently located in the currency's public ledger. This could significantly combat corruption and reduce instances of fraud as anyone who tries to steal money via Bitcoin or Ethereum is automatically booted out of the blockchain.

Cryptocurrencies will help the unbanked

The World Bank estimates that up to 2 billion adults across the world do not have access to financial services. As smartphones and internet connections are spreading faster than financial services, cryptocurrencies can allow the unbanked to have cheap, secure, and robust access to financial services.

As 70% of the world's population is expected to possess a smartphone by 2020, cryptocurrencies such as Blockchain and YoCoin can allow poor people to transact without being subject to costly banking services. YoCoin is expected to be a leader in this field as it focuses on providing access to poorer markets.

Cryptocurrencies can decrease remittance costs for developing nations

As the US Dollar and other powerful western currencies have effectively monopolized currency transactions and as a result, most developing nations are at the mercy of western financial services that charge exorbitant fees for transferring money between countries. People in the developing world tend to receive money from their relatives in western societies, and the money is subject to ludicrous transaction fees.

With cryptocurrencies, money can be transferred without a significant chunk of it going to an exploitative intermediary. In 2015, nearly $430 billion made its way to countries such as India, Mexico, China, and Nigeria, and it was estimated that nearly 10% of this amount was lost to intermediaries. In Sub-Saharan Africa, nearly 12-13% was lost, which is among the poorest regions in the world.

Cryptocurrencies can fight inflation

When the US Dollar, the GBP, or the Euro inflates, individuals from nations with weaker currencies face the brunt of the higher costs, which is then in effect transferred to the poor people of the developing world as goods and services move west. The problem was far worse in countries such as Zimbabwe and Argentina that possess highly unstable currencies.

Zimbabwe's dollar has to be ditched as it super inflated to monstrous levels. The likes of Vietnam and Argentina have experienced first hand the benefits of cryptocurrencies in the face of unstable currencies. People can convert their currencies to YoCoins or Bitcoins in order to hold more secure resources.

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