It is no longer news that blockchain technology is here to stay. Since its inception, several developed countries around the world have utilized blockchain adoption in their economics systems. Moreover, other countries with emerging economies have joined in the adoption of this technology towards enhancement of their economic systems.
Are third world countries left out of this emerging economic shift? As countries regarded as “third world” continue to strive towards economic growth, they cannot afford to miss out of this opportunity.
The Current Situation
Third world countries are non-aligned countries. They represent countries that remain neutral in their international dealings, showing no support for neither the east nor the west bloc. More third world countries have started adopting blockchain technology.
A Japanese software developer mentioned in 2018 that it had successfully demonstrated the application of the blockchain system to microfinance services in Myanmar highlighting the usage of blockchain technology for economic development. Similarly, in 2017, the Rwandan Government established a blockchain project to secure transactions, digital authentication and legally binding signatures. The project helped the government to ease issues concerned with the registry of land.
The importance of block chain technology to third world countries cannot be overemphasized. It provides easy access to banking, creates a faster and efficient money transfer system, relieving customers of irrelevant charges. Small and medium scale enterprises have also benefited from the adoption of blockchain technology in these countries.
Challenges of Blockchain Adoption
Since the majority of third world countries are poverty stricken countries, some countries have faced the challenge of adopting the usage of blockchain technology. One of these challenges is the availability of the internet. This is relatively a problem in African countries.
It was reported that “Only 31.2% of the total population in Africa has access to internet connection” Despite the growing number of internet users in the continent, the framework for internet access needs to be established. Poor internet connectivity is a great challenge that hinders or slows the deployment of blockchain technology.
With materials and information on the net, it is easy for anyone to understand it fully and make up the decision of adopting it in his or her business, one must invest a lot of time to study and research about it. However, some of the current exchanges where people can buy/sell cryptocurrencies are not suited for all local markets in Africa.
For this reason, some persons decide to stay away from adopting it as it is perceived to be too complex to handle.
Trend for the Future
Despite the challenges and other issues with adopting blockchain technology, more third world countries will likely adopt blockchain technologies. Third world countries cannot afford to be left out of the recent trend. It is expected that more countries will utilize blockchain technology to facilitate smooth financial transactions.