The Power of Blockchain: How Cryptocurrency Is Empowering People Around the World
Technology has come a long way. It has transformed our lives for the better — the way we communicate with each other and how people connect globally, the way we receive information, and most importantly, how it is changing the lives of many through blockchain.
Blockchain has been a disruptive force ever since its emergence. With its immutable, transparent, and decentralized capacities for the recording and sharing of data and transactions, blockchain technology is being recognized as an innovative approach to step into the future.
- Cryptocurrency has been playing a major role in solving hyperinflation.
- Cryptocurrency plays an essential role as it has the ability to empower social and economic growth by offering modern banking solutions.
- Financial inclusion is bridging the gap between the rich and the poor, boosting job creation and accelerating consumption.
- LYOPAY was created to empower people, giving them an ease to adopt cryptocurrency on a daily basis.
Cryptocurrency — An Inflation Hedge
One such innovative creation out of the blockchain technology is cryptocurrency. Cryptocurrency mass adoption has been taking over and people are now recognizing it as a mode of payment for their everyday use. And to an extent, cryptocurrency has been playing a major role in solving some of the world’s greatest issues. One such issue is hyperinflation.
Inflation refers to a broad rise in goods and services across the economy, thus declining the purchase power over time. In a nutshell, when inflation gets out of control, it leads to hyperinflation causing extreme rise in prices, usually at a rate of 50% per month, in a short period of time. Meanwhile, wages stagnate and currency purchase power decreases, making living costs extremely expensive.
Inflation has always been a constant threat to the value of fiat, and in order to protect themselves from this issue, people often start investing in digital assets that maintain their value over time. Historically, people would buy gold as a hedge against inflation, but with the rise of innovation and technology, cryptocurrency has now become a popular alternative over the years.
This is because decentralized cryptocurrencies can deliver a consistent yield that matches or at times even beats the inflation rate by a big margin. Its value increases over time due to the fact that they are scarce. Unlike central banks that can increase the supply of fiat money, cryptocurrencies have a fixed number of coins throughout.
Empowering People With “People’s Money”
The very reason why cryptocurrency has been termed “people’s money” is the reason why it has been empowering people.
Apart from hyperinflation, cryptocurrency can be a leap to solve major global issues such as poverty, lack of access to banking, lack of capital, and poor access to markets. Cryptocurrency is becoming a medium to improve people’s lives around the world, especially within developing countries, by allowing them to participate and actively be a part of the global economy.
This is achievable through providing everyone with access to modern banking and innovative financial services through blockchain and cryptocurrencies.
Modern Banking Solution for the Unbanked
Developing countries have always faced difficulty when it comes to banking services. For instance, people living in small villages of Africa have no ID, or a bank account to help them participate in the global economy. These people lack resources and are deprived of basic needs, as well as international markets and convenient payment methods.
According to statistics, about 57% of the population of Africa, around 95 million people, do not have a traditional bank account. As per the data from the World Bank, that makes it about 31% of the adult world population with no access to banking facilities.
This is where cryptocurrency comes into the picture. For developing countries such as Africa, cryptocurrency plays an essential role as it has the ability to empower social and economic growth by offering modern banking solutions.
Cryptocurrency gives people a digital identity with modern solutions. With cryptocurrency, people are provided with means for trading and investment purposes, as it doesn’t require traditional banks to exist. This financial inclusion is bridging the gap between the rich and the poor, boosting job creation and accelerating consumption.
All you need is a mobile phone and you are ready to step into the global economy. Reports reveal how mobile banking is happening through text messages, notably in Kenya. According to the World Bank, “Studies have shown that mobile money services –which allow users to store and transfer funds through a mobile phone — can help improve people’s earning potential and thus reduce poverty.”
Additionally, it has been reported that blockchain technology can also facilitate micro-credit services or any other much-needed community-based networks.
Mobile banking and access to digital currency has especially been beneficial for women in Kenya. It has been reported that modern banking enabled women-headed households to increase their savings by more than 20%; it allowed 185,000 to leave farming and develop their own businesses and helped reduce extreme poverty among women-lead homes by 22%.
Accelerating Impact with Blockchain and Cryptocurrency
To realize the impact of blockchain and cryptocurrency and how it empowers people on such a large scale, let’s take an example of the United Nations (UN).
One of the many ways the UN has embraced blockchain and cryptocurrency is through its ‘UNICEF Innovation and Crypto Funds’ programme, that enables UNICEF to receive, hold, and disburse cryptocurrencies, specifically Bitcoin and Ether, to open-source software start-ups in support of solutions to challenges faced by children and young people.
Moreover, UN agencies have also been using blockchain to create innovative projects that help millions of marginalized individuals. One such instance would be the United Nations’ World Food Programme (WFP), which is making use of blockchain to safely and efficiently provide aid directly to beneficiaries.
Cryptocurrency is called “people’s money” because people have the authority to own it and access it without the need to ask for permission from a central bank. This is exactly how they feel empowered with cryptocurrency, especially in developing countries, or countries going through major economic crises, that makes them an essential part of the global economy and revive sustainable development.
LYOPAY was created to empower people for the very same reason. We have created an Ecosystem filled with crypto products, and are setting a benchmark in the world of crypto. We give people an edge of ease and convenience that helps them to adopt cryptocurrency on a daily basis.
With over 150,000 customers, the LYOPAY ecosystem is growing everyday where people get an opportunity to become a part of the bigger picture, empowering them with an access to the world of crypto so they are ready for the ongoing mass adoption.
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