Crypto Is the Revolution Leading Developing Countries to Financial Inclusion

World regions with fast-growing financial and economic potential, such as Africa, could become the predominant crypto adopters.
Back when digitized banking service evolutions such as debit cards, online banking and check imaging were sweeping the financial sector, one could have never imagined what was coming next. I certainly did not, having spent more than 10 years during this time advising executives of major global banks on the implementation of these game-changing technologies.The creation and digitization of new currencies, not owned by the government but by the people, has found its home in the global market over the last decade, starting with Bitcoin (BTC) and soon exploding to thousands of alternative digital currencies available for exchange and with a total valuation of $285 billion, each with its own form of value and usage.When it comes to developing countries, in particular Africa, and why this revolution will usher in people’s financial independence and inclusion, we start with the eye-opening reality that African users have essentially leapfrogged developed nations in usage of both technology — where mobile phones have long been the African primary tool of choice for business and daily life exchanges — and also in terms of their cryptocurrency usage and adoption.The key factor in these realities is found in the youth. The continent boasts the world’s youngest population, with 200 million people between the ages of 15 and 24 — and it continues to grow. Having been born well into the age of technology, today’s youth are naturally more adept than their seniors in terms of understanding and leveraging mobile technology, cryptocurrency and related online tools and services. By 2045, the African workforce will be the world’s largest.We then move into the second-largest factor that prohibits financial inclusion, and where cryptocurrency unleashes a radical empowerment to rising entrepreneurs. Cryptocurrency and related blockchain companies have brought to market financial tools and services that allow for seamless and affordable exchange (globally and locally) and a more secure store of value without users having to hold their assets a bank account or secure credit card debt.With the rise of tools such as m-Pesa in markets such as Kenya, where its use accounts for close to half of the country’s GDP, we can clearly see the need for simple tools allowing for the transfer of assets (i.e., remittances or transfers across borders), all the way to purchase of goods and services digitally without the need for a bank or credit card. As the world cries to “bank the unbanked,” Africa has another opportunity to leapfrog into the most modern technologies and models.But why is Africa having its own cryptocurrency important for these types of models to succeed, and why do we need more than one? Another question often asked is, “Why not just use Bitcoin?”The answer to the first question lies in the complications of banking the unbanked and whether it’s even necessary. Over 1.7 billion people globally are unbanked, lacking a bank account or credit card to partake in the

Post written by our friend Lynn Liss and Syndicated from Cointelegraph
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Syndicated from CoinTelegraph.com