Introduction
In the rapidly advancing realm of modern technologies, finance has discovered novel avenues and substantial approaches to traverse the globe. These innovations, initially recognized as cryptocurrencies, have undergone a transformative evolution, blossoming into a dynamic tool with the potential to revolutionize numerous sectors and alter their landscapes on a profound scale. Particularly for developing nations, the implementation of blockchain technology can exert a pivotal influence in bolstering their economies and facilitating the management of economic applications worldwide.
Blockchain in developing nations promises a new and safe method for funds transfer all across the globe through a chain of networks that is so well encrypted that these payments and money transfers cannot be tracked by nonsocial elements that can use these finances to hinder the economic development of a nation. The major promise that comes with the blockchain form of financial management is that these finances have no significant races that are left behind after a transaction is complete.
For a developing nation, the major area of concern is its finance management and how to utilize it for its benefit and fast and stable economic growth. Blockchain in developing nations has promised to address these demands of developing nations in a way that is even more secure and requires less level of infrastructural development to inculcate. This article will delve into deeper aspects of blockchains in developing nations and how these payment methods and financial management systems find their economic applications in developing nations.
Also will see some challenges and benefits of implementing this method of financial management when it comes to a nation’s overall economic stability.
Blockchain helpful in financial inclusion
Since in developing nations, the society is filled with underprivileged populations that lakhs financial stability and banking procedures blockchain can help bring these underprivileged populations towards the banking sector thus promoting financial inclusion for all.
When all sections of the society would come together under the same banking and financial sector it would be easy for the country’s government and the decision-makers to take a look at the financial stability of its population and also at the same time determine the per capita income and what is needed to increase it with the passes of time.
As the per capita income of people in a developing nation increases the nation develops a more financially and economically stable structure thus helping in its rapid GDP growth. Blockchain in developing nations has thus proposed a solution for the biggest hurdle that was breaking all the financial levels of society and there is the same banking section thus promoting financial inclusion.
By the report published by the World Bank around 1.7 billion adults around the globe remain undermined by the banking sector of which the major population is from the developing nations. Blockchain-powered financial service platforms enable these undermined sections and all other individuals to have access to banking facilities without getting into trouble with the traditional banking infrastructure.
The cross-border transactions
Did the traditional remittance system and the older cross-border banking and financial management system take a lot of time and high involvement fees for these high-valued and even low-valued transactions? For every developing nation the major source and the most important asset is the falling exchange that is brought in by the nation’s business individuals and other cross-border transactions made daily.
Blockchain in developing nations has proved to be a more reliable way and convenient method for these cross-border transactions at both an individual level and an organization level.
These developing nations can acquire the blockchain method and thus help and facilitate their individuals and business owners to do cross-border transactions with greater valued remittances and less amount of time. When the fee is reduced over these transactions the more the individual saves the more he invests in his nation’s development providing a more financially stable cross-border transaction method for a developing nation.
The World Bank published a report in which it mentioned that the average cost of sending remittances across these cross-global transactions is around 6.38%. The above-mentioned percentage is a lot when it comes to huge transactions in 5 digits that often occur in these cross-border transactions. If these transactions and fees are the same these developing nations would lose a big amount of the financial assets.
Blockchain promoting transparency
Blockchain in developing nations of which agriculture is a major pillar of the economy has promoted supply chain transparency. The blockchain uses the tracing agenda to detect the route of agricultural products from farms to markets and then to stakeholders that can ensure good safekeeping and quality of the product. If the buyer is satisfied with the quality he will pay a good balanced amount for the product enhancing the per capita income of both the farmer and the developing nation.
When the foremost pillar of these developing nations is agriculture becomes strengthened with the help of these blockchain-dependent financial setups the nations automatically grow towards economic stability thus promoting development for all sections of the society.
For a happy and well-developed nation, the major secret is that its farmers and the most important pillars of its economy stay happy and satisfied with both the quality they produce and the quality they sell for your stock blockchains have promoted transparency and help farmers to trace the quality of their products all across the market.
When these individuals have direct access to what’s going around in the market they can find the best-suited buyer for the quality product which they have produced and can sell they are produced at appropriate rates.
The food and agricultural organizations clearly say that smallholder farmers who make up a significant portion of the agricultural pillar for developing nations face a challenge in accessing the market and receiving good prices for what they have produced for the stop blockchain can openly address these issues in developing nations by providing supply chain transparency to both the farmers and the buyers.
The most needed identity system
For a developing nation, identity is a major requirement for accessing various sectors of facilities that are ensured by individual organizations or even government organizations. Blockchain in developing nations has established a fundamental identity system and offers a complex start clean solution to enable a decentralized identity system that provides individuals total control of their personal information.
In today’s era of modern technology, information theft has become a major challenge for these developing nations and blockchain shows that an individual has full access and control over their personal information reducing the threat of financial theft for these developing nations. When this threat is reduced these developing nations can focus more on their infrastructural development rather than focusing on how to keep and store this information of individuals safely.
For any nation, its individuals and their information is a major asset that a developing country cannot afford to lose to a nation that is an enemy or a foe for its development stock the more the information is encrypted the more individual has the right over a their personal information the less chances are there for the information thefts.
In this way, the developing nations can focus their financial management and economies towards developing educational and other helpful infrastructures rather than focusing on developing encryptions and structures that can ensure the safekeeping of this critical personal information.
Conclusion
Blockchain technology in developing nations has proved to be a major pioneer for their economic development and quick economic stability attainment. The blockchain system has promoted more financial inclusivity for these developing nations thus ensuring their financial stability. Also, blockchain in developing nations has proved and founded a new way to promote product supply line transparency which helps these developing nations to ensure the quality of produce that their farmers produced over is specific period.
For a developing nation having agriculture as its major pillar when these farmers can earn goods, they can contribute more towards the economic development of these developing nations. Blockchain technologies in developing nations have promoted and produced a greater landscape that lays a big table of opportunities for these developing nations to attain financial instability and inclusivity at the same time with less effort low management costs and reduced time.
These developments and supports are quite significant for these developing nations as they are seeking low low-maintained financial stabilized system that can address major sectors of society and can promote total financial inclusivity for all the sections prevailing in a society. The more the banking system is promoted in a developing nation the more the government can keep track of its finances thus increasing its financial pillows and financial involvement with H citizens and individuals.
Organizations in cross-border transactions can save a high amount of fees by employing these blockchain financial distribution methods thus helping a nation to acquire more foreign exchange and promoting the overall economic stability of the nation.
