The rapid application of Web3 payments in developing countries is driven by economic, regulatory, and grassroots factors, and each factor is accelerating this trend. This article is sourced from the author Blockchain Knight, compiled and written by PANews.
(Background:
After a six-year hiatus, Stripe returns to “cryptocurrency payments” to support the USDC stablecoin, processing $1 trillion in transactions annually.
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(Background Supplement:
Venezuela expands the use of USDT for oil payments to counter US sanctions.
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With the emergence of Web3 payment solutions, the world of financial transactions is undergoing a transformation. Although this transformation is evident globally, what is truly noteworthy is that the leaders of this revolution are developing countries.
The active exploration of Web3 payment solutions reflects the flexibility and adaptability of developing countries, placing them at the forefront of financial innovation. From the revolutionary decentralization of funds to the democratization of payment tools, the rise of Web3 payments in developing countries signifies a major change in how we view and participate in financial transactions.
In the unknown realm of “decentralization,” developing countries are poised to surpass mature economies like the United States, ushering in a vibrant new era of global economy.
For a long time, developing countries have faced many challenges in financial inclusivity, such as costly and inefficient economic systems.
Traditional transfer methods often require a transfer fee of 10% or higher, with cross-border payments taking up to 5 working days, and certain populations often lacking permanent addresses, government identification records, or fixed income, limiting the convenience of transfers.
However, the emergence of Web3 technology is reshaping this landscape, providing a new solution for those excluded from the traditional financial system.
In developing countries, Web3 everyday payments have completely changed the way transfers are conducted on both macro and micro scales.
Whether it’s buying meals, paying rent, or making cross-border remittances, Web3 everyday payments not only simplify the process of remittance and collection, but also reduce reliance on intermediaries, thereby alleviating the “customer identification” standards and delays associated with banks.
At the same time, using crypto assets for payments is beneficial for business owners, as companies that adopt crypto asset payments have an average return on investment (ROI) of 327% and a significant increase in customer acquisition rate of 40%.
Looking globally, we can see successful implementations of Web3 transfers in some developing economies, such as Brazil.
From P2P crypto asset exchanges to decentralized protocols facilitating cross-border transactions, these platforms provide unprecedented transparency and security, rebuilding people’s trust in the previously suspicious financial systems.
In fact, the transition to Web3 payments brings great hope to developing countries. By eliminating barriers to financial access and promoting greater financial inclusivity, it paves the way for economic empowerment.
With the transformative potential of Web3 payments being embraced by developing countries, they are not only narrowing the gap with developed countries but also becoming pioneers in the continuous development of global finance.
The rapid application of Web3 payments in developing countries is driven by economic, regulatory, and grassroots factors, and each factor contributes to the acceleration of this trend. At the same time, the impact of this application extends far beyond the borders of these countries, contributing to the reshaping of global economic and financial development trends.
The adoption of Web3 payments by developing countries is not just for convenience, but to address urgent economic and social needs.
In countries like Venezuela and Argentina, plagued by severe currency inflation, traditional currencies are in jeopardy, while crypto assets provide a lifeline by offering stable value storage and mitigating the risks of economic volatility.
Similarly, concerns about financial freedom and government overreach are driving the adoption of crypto assets in regions like Afghanistan, where the ability to freeze assets can have dire consequences, especially for marginalized groups like women.
Due to the urgent need for alternative solutions, the regulatory environment in many developing countries is becoming increasingly favorable for the adoption of Web3 technology. Recently, South Africa’s FSCA clarified regulations on crypto assets, sparking efforts towards normalization.
Recognizing the potential benefits of crypto assets, members of the African Union in many regions continue to take proactive measures to establish frameworks that support innovation and investment in this field.
By providing clarity and regulatory certainty, these initiatives encourage the flourishing development of the Web3 solution ecosystem, further driving application and economic development. Grassroots movements and entrepreneurial initiatives are playing an increasingly important role in promoting global adoption of Web3 payments.
From community-driven projects to innovative startups, these initiatives demonstrate the bottom-up demand for alternative financial solutions that can address unique needs and challenges faced by individuals and businesses.
The adoption rate of grassroots crypto assets in low- and middle-income (LMI) countries continues to rise, and their overall adoption level will surpass pre-bull market levels from the third quarter of 2020.
It is worth noting that 40% of the global population lives in low-income countries, more than any other single income category. As these grassroots movements grow and develop, they will lead the world into a new era of Web3 application. The Web3 revolution has just begun, and the world is paying attention.
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