Why Crypto is Prime for Emerging Markets
With cryptocurrencies, the unequal exchange barrier created by national currencies is eliminated and users can conveniently conduct transactions from all corners of the globe as they directly exchange value for services and products.
TL;DR
- Emerging markets are generally plagued with weak economies, with crypto, values can be harmonized for users globally
- Cryptocurrencies remove the barrier to international transactions and eliminate the high cost of transactions
- IvoryPay helps businesses in emerging markets connect with the rest of the world through its crypto payment gateway solution
Characterized by Weak Economies
Generally, emerging markets are plagued with weak national economies where currency devaluation is quite common in a bid to attract foreign investment. This makes the purchasing power of citizens fall below what is attainable in other parts of the world.
Unstable government and lack of continuity in governmental policies from one regime to another is yet another problem that is rampant. Therefore, more often than not, economies are weak and fragile as the purchasing power of citizens drops.
With cryptocurrency, the barrier of a weak national currency is eliminated as the forces of demand and supply determine the value of cryptocurrencies from time to time. Due to their universality, the fluctuation in prices is even in all parts of the world and value is equivalent at every point in time.
Removing Barriers to International Transactions
It is not uncommon for national governments in these countries to put measures in place to shore up the flow of funds. One of these measures is to rapidly increase the cost of international transactions in a bid to encourage in-flow and reduce the outflow of funds.
The cost of international transactions in itself could be huge and the transactions could take days before they are completed. This creates a barrier to international trade where funds might be required to be moved around quickly.
Cryptocurrencies pose a double advantage in this regard. First, there are currently no barriers to transactions as all transactions take place within a giant blockchain ecosystem. This directly impacts the rate of transaction completion where payments could be confirmed within seconds irrespective of the location of the parties involved in the exchange. As for the cost of a transaction, cryptocurrencies generally charge a fraction of the total amount in question, an amount that is considerably lower than what banks and traditional financial institutions charge.
IvoryPay Solutions for Emerging Markets
As a support to the many prospects domiciled in emerging markets, the IvoryPay payment gateway offers businesses and crypto users in the emerging markets the opportunity to accept and make payments with cryptocurrencies. Businesses will be able to deploy any of IvoryPay’s payment solutions which include checkout, QR code, payment link, and button.
Businesses will be able to deploy one or a combination of these tools to meet their peculiar business needs. Having access to all of the benefits already discussed in this piece, businesses in emerging markets (Africa, Asia, and South America) are well positioned to reach a global audience and overcome all of the barriers to international transactions.
Conclusion
Emerging economies have a lot to benefit from adopting cryptocurrencies. The ease of completing transactions and the opportunity to compete with businesses on the global stage are some of the immeasurable benefits that accrue from adopting cryptocurrencies.
To learn more about IvoryPay, feel free to use the links below:
