The global Covid19 pandemic has threatened the financial capacities of most nations as they were literally brought to their knees due to the associated challenges of the inability to work and move from one place to another in a convenient manner.
Similarly, this has also engulfed other sectors of the global economy, including health, agriculture, education, and supply chains. As a result, humans have developed the ability to think critically and propose solutions that can help mitigate the current issue.
However, the flexibility in the blockchain technology and cryptocurrency space has created a new means of financial survival. Taking a cue from the president of El Salvador who made his country the first official country to accept Bitcoin as their official currency.
Initially many thought he was making a big mistake for the choice he made but obviously he knew what he was doing. The nation has profited from the transaction made some months ago by purchasing these crypto currencies. As of today the government is using the funds generated as profit to build schools and hospitals for the good of the people.
Below are some solutions to global problems that crypto can solve:
Cross-Border Payments: The current state of international payments through banking channels is a pain in the neck, to say the least. It is a multistep process that involves a lot of intermediaries.
Furthermore, each step of the process takes a lot of time and also requires a large amount of money that needs to be exchanged. By using a secure and sophisticated distributed ledger, once a transaction gets recorded, the payment is almost instantaneously transferred to the receiving party.
Since the transaction can’t be reversed or changed, it also ensures better accountability and security than the currently employed system.
Cryptocurrencies have the potential to help people escape poverty by overcoming a lack of social trust and increasing access to financial services.
They can be used to support the growth of developing countries by increasing financial inclusion, improving fund traceability, and assisting people in escaping poverty especially from the rural communities and major cities and towns of the affected countries.
Cryptocurrencies assist firms in gaining access to the global market, particularly when they are looking to expand. Their clients can therefore pay businesses in crypto currencies from other countries, even if the businesses do not have a bank account with an international identification number. A website developer in a poor country, for example, can be hired by consumers from other countries and earn money.
Cryptocurrencies, particularly when used in conjunction with smart contracts, can help to enhance societal trust and combat corruption by facilitating a more transparent contract system.
Citizens can monitor how governmental monies are used by using the publicly available record data of crypto currencies in the blockchain. It would also make it possible for governments to keep track of their spending.
The benefits of crypto can not be exhausted in just one post but we would ensure we communicate all these benefits in subsequent articles. The Klever team would continue to communicate basic educational contents on our social media platforms.
We would use this as a medium to encourage new users to create their own accounts and start following the Klever family to achieve knowledge on financial freedom and development.
It is a Klever thing to do.
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