NEW YORK—Crypto hubs are popping up in growing numbers in developing countries, according to a new report.
“Countries in the developing world are seeing the potential in digital funds to address their economic challenges, spur innovations, and attract foreign investments,” Analytics Insight said.
Analytics Insight outlined reasons it said make cryptocurrency more and more popular in developing countries, including:
Economic Instability: “Most developing countries, especially the third- and second-world countries have inflation, devaluation of their national currencies, and lack of proper banking facilities. Therefore, the best solution to hedge against economic instability or store value is through cryptocurrency,” Analytics Insight said.
Financial Inclusion: “Cryptocurrency potentially stands to boost financial inclusion by giving the unbanked and underbanked populations important access to financial services. This could increase economic activity, supposedly reducing poverty,” Analytics Insight reported.
Remittances: “In countries showing heavier dependence on remittances, cryptocurrencies provide faster, cheaper, and more secure alternatives versus traditional remittance frameworks,” according to Analytics Insight.
Job Creation and Innovation: “Cryptocurrency creates both new jobs and innovations in the blockchain development, digital asset management, and cybersecurity space,” the report explained.