How Cryptocurrency Can Make the World a Better Place?

Gone are the days when crypto enthusiasts had to spend hours trying to explain the crypto landscape to new people. The concept has now become so popular that most people are now thinking about how cryptocurrencies can add value to their personal and professional lives. Cryptocurrencies have successfully proved their importance over the years.

Businesses and even regulatory authorities are now thinking about how cryptocurrencies can make the world a better place.

Financial Inclusion

This may sound strange but a huge population of developing countries can’t access the basic financial services that are usually taken for granted in developed countries. Fortunately, cryptocurrencies are now bridging this gap by revolutionizing the financial landscape.

The unbanked populations struggle to conduct business with international communities. They’re forced to use less authentic alternatives to transfer or receive funds. The worst part is that more than 1.7 billion adults are unable to access basic banking services due to the absence of banking infrastructure.

Cryptocurrencies provide secure financial services to these populations so they may access financial services without the need for an intermediary. With their user-friendly interfaces, crypto networks enable everyone to access financial services. Blockchain-based remittance services in the Philippines and M-Pesa in Kenya are some of the leading examples of how cryptocurrency can facilitate the underbanked populations.

However, the lack of digital literacy is one of the major reasons why the crypto market hasn’t yet achieved mass adoption in these regions. Similarly, the users are reluctant to explore this landscape due to some security concerns and regulatory uncertainties. The relevant authorities can actively address these challenges to enhance the positive impact of cryptocurrencies.

The governments are now working on launching the central bank digital currencies (CBDCs) which will further strengthen the financial inclusivity of cryptocurrency.

Cross-border Transactions

In the traditional financial market, users have to face a lot of challenges like high fees, currency exchange complications, and prolonged processing times while conducting cross-border transactions. These issues appear because a number of central authorities are involved in processing the transactions.

As a result, individuals and businesses have to struggle a lot especially if they’re engaged in international trade. Cryptocurrencies offer fast and more cost-effective transactions by eliminating intermediaries. Cryptocurrencies also eliminate a set of risks by providing users with direct control over their funds.

Cryptocurrencies are now being used for international trade in various sectors. Similarly, individuals are also taking advantage of this market for remittances.

Empowering Individuals

As discussed earlier, cryptocurrency puts power directly into the hands of individuals. Crypto networks distribute control across a network of node operators with the help of blockchain technology. Thus, the individuals get direct control over their financial assets. The users no longer need to rely on traditional banks as they can now access financial services using digital wallets.

The best thing about cryptocurrencies is that they entertain micropayments and microtransactions. It means the users don’t have to meet a specific threshold to transfer funds globally. They can now send a small fraction of cryptocurrency in a frictionless manner. Similarly, many entrepreneurs have used decentralized finance (DeFi) to grow their businesses globally.

Social Impact

Cryptocurrency has significantly redefined the landscape of philanthropy and charitable giving. Cryptocurrencies offer an ultimate level of transparency allowing donors to transfer funds to a specified cause. The recent examples of the Russia-Ukraine war and the Israel-Hamas war show how cryptocurrencies can be used for charitable causes.

A number of charitable organizations are collecting funds from the donors and transferring them to the affected people in these regions. Cryptocurrency is also creating a social impact by supporting small-scale entrepreneurship in developing regions. At the same time, cryptocurrency is offering new ways for content creators and digital artists to monetize their work.

Writers, musicians, and other artists are taking advantage of the crypto platforms to sell their creative work at an attractive price. It’s also worth noting that cryptocurrencies are often criticized for their environmental impact because Bitcoin and other such networks require a huge amount of energy to run their operations.

But most people don’t know that new crypto projects aren’t just addressing those issues but they’re also introducing innovative ways to support environmental sustainability.

Regulatory Challenges and Solutions

With the evolution of cryptocurrencies, users have to face additional challenges and complexities due to the lack of proper regulatory frameworks. The worst part of the lack of regulatory frameworks is that they prevent the mainstream adoption of cryptocurrencies. Similarly, the decentralized nature of cryptocurrencies poses some unique security challenges that affect the users’ trust.

The regulatory authorities need to introduce new regulatory frameworks that can protect the crypto investors and the businesses that are willing to use these assets for transactions. The global authorities need to work together to set proper standards for cryptocurrencies.

Those who are willing to use cryptocurrency for personal use or for their businesses must make sure that they establish their head offices in countries that support the adoption of cryptocurrencies. Switzerland is one of the leading countries that is setting a welcoming environment for crypto-related businesses.

Similarly, a number of African and Asian countries are defining new regulatory frameworks to support the adoption of cryptocurrencies.

Conclusion

Cryptocurrencies are reshaping the world by addressing financial inclusion, streamlining cross-border transactions, empowering individuals, and making a positive social impact. Despite challenges such as regulatory issues, the ongoing evolution of cryptocurrencies promises transformative solutions.

As global authorities work on regulatory frameworks and new projects focus on sustainability, the potential for cryptocurrencies to contribute to a better world remains significant. From enhancing financial accessibility to supporting charitable causes, cryptocurrencies are proving their worth and paving the way for a more inclusive and efficient global financial landscape.

If you need more information about how cryptocurrencies can make the world a better place, feel free to get in touch with us. We also invite you to subscribe to our Bitcoin weekly newsletter if you need regular updates about Bitcoin and the crypto market.