How Bitcoins and other cryptocurrencies can help developing countries?

How Bitcoins and other cryptocurrencies can help developing countries?

Corruption in developing nations

There is no doubt that there is rampant corruption in developing nations all around the world with contracts being offered for government projects funded by the international lending institutions at inflated costs to appease those close to the powers that be.

The world’s lending institutions find their hands tied due to the political ramifications that could overflow if they tend to ruffle any feathers hence keep their distance from the projects other than funding them and monitoring their progress.   

Pilfering funds

It is because project funding is paid in hard currency that this situation arises and is uncontrollable but if a system could be initiated that could arrest the pilfering of funds then corruption could be limited or even eliminated from the very same developing nations that have mostly stood still in time for decades due to the bottomless piggy bank they have been using to engage all the funds that they have received over the years.

The introduction of Bitcoin in the year 2009, the digital currency that took the world by storm and the blockchain technology it initiated to help  in the endeavor opened a new page where money could be used securely especially to fund projects with smart contracts, where everything pertaining to it could be transparent eliminating corruption.

Unrealistic government contracts

The use of blockchain opened a new dimension where normal banking procedures were transparently unbanked giving access to anyone wanting to see the progress in a particular project and the cost that would be incurred on the treasury of the concerned nation and in retrospect to the citizens of that country.

The era of unrealistic government contracts would be a thing of the past and underbanked smart contracts would be the future for all developing nations hoping to see a new horizon with the full implementation of the blockchain technology into their monetary system.

Blockchain technology to help

Blockchain technology would be a blessing in disguise for all developing nations but the big question that is still to be answered is whether the governments concerned and the lending institutions are ready to implement it. The people want it and are clamoring for transparency because they have been taken for a “right royal ride” all these years and are still in the doldrums they were in decades ago too.

There were some issues with Bitcoin but the technology that was initiated has very good hope and scope for tremendous improvement as it would also control and detect unauthorized money laundering which is the bane of the banking industry of the world today.

Hard currency that are pilfered from developing nations are easily finding their way into secure banking systems within the present banking system and whether blockchain technology could arrest this corruption is every body’s hope. If a converted effort is made and steps are taken within the world banking system which is obsolete today, it would save the monies of many developing nations and all those funds could be channeled into constructive development.

Conclusion

Now you have a clear understanding on how Bitcoin and other cryptocurrencies are in a position to provide an excellent assistance to the developing countries out there in the world with eliminating corruption. In addition, you know how the cryptocurrencies can help them to achieve their development goals. Necessary plans are currently being made on the above-mentioned principles. We will be able to see them in action in the near future. As a result, the developing countries will experience an accelerated development by eliminating more of the inherent issues that restrict development.