Imagine not being able to buy one day’s groceries with your monthly salary – this is the reality for people in Venezuela. Low wages, inflation, and economic instability are all reasons for citizens to search out ways of coping. It is possible to increase economic growth through cryptocurrencies.

Anyone can create a cryptocurrency wallet and receive funds or make transactions every day. This is how digital assets can assist in financial inclusion.

Remittances from overseas are crucial to the economies of many developing countries. The transaction fees for blockchain technology are very low or negligible. It can be used to exchange money and transfer funds. It is also fast and free from third-party intervention.

Shukry Haleemdeen, founder of My Crypto Tax and crypto accounting and consulting firm My Crypto Tax spoke exclusively to DailyCoin about the key crypto issues facing migrants as well as people living in poorer countries.

Some advantages of using crypto are the easier and quicker transfer of funds; users can have more control and people don’t have to go through independent vendors or third-party organizations.

However, in some countries when people want to take money out, they need to have access to banks so if a country doesn’t have the facility, that’s going to create a problem. Haleemdeen stated that they cannot spend cryptocurrency in the country without crypto.

“To make crypto really functional, the infrastructure globally has to improve, because especially in third-world countries crypto isn’t very much welcomed. So even if people have crypto access, transfers and cashing out crypto is going to be an issue.”
Their financial systems are still not sufficiently developed in the developing world. This is their main worry. These countries still have two steps to go before they can compete with Western countries in this sector. The acceptance of crypto will remain limited until systems can be developed.

“Few people might use crypto, but a widespread day-to-day use of digital money will take time and we’re not there yet,”
Haleemdeen spoke.

Flipside

• The adoption of crypto for migrants is not without its challenges. Some crypto currencies, especially those based upon speculation, are more volatile than major currencies. These currencies can be a risk to lose money especially for those with limited financial literacy.

What are the reasons to care?

Global acceptance of cryptocurrency could make a huge difference in your life and change the way you view financial services.

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