Can Cryptocurrency Change the Global Economy?

Cryptocurrency has been a hot topic for several years now. But only recently they have caught attention as financial tools that can be accessible and put to many uses, rather than just being a digital commodity.

Crypto-related jobs are currently in demand, as the market continues to expand, affecting the world economy positively as a whole.
Digital money plays an essential role as it has the ability to empower social and economic growth by offering modern banking solutions.
Cryptocurrency is used as a crucial tool for cross-border transactions to ensure economic equality, impacting the global economy majorly.
Crypto’s utilitarian structure allows people to invest and transact with a global economy.
Because of its decentralized nature, cryptocurrencies act as a global economy in which all the users can participate in, which helps support new businesses and create more competition in financial services.

Cryptocurrency and Its Impact on The Global Economy

Termed as “people’s money” and nowadays known for empowerment, cryptocurrency is more than just a financial innovation. It is one of the most revolutionary and disruptive innovations in the world of modern finance – a factor that has majorly disrupted the lives of people, causing a major positive impact.

Digital money has proven its potential of transforming the financial world with remarkable benefits, especially for countries with lower-income alongside emerging markets. Cryptocurrency is a social, cultural, and technological development that is setting a spur on the world economies.

Let’s take a look at how cryptocurrency has affected the global economy as a whole:

Increased Job Markets

The development and rise in cryptocurrency have led to the crypto industry being a massive ecosystem filled with experts, exchanges, and participants that requires people to manage everything. Crypto-related jobs are currently in demand, with the number of crypto job listings for the US skyrocketing by 395% in 2022, as per a LinkedIn report.

LinkedIn has even mentioned blockchain and digital assets skills as one of the leading in-demand skills sought by employers nowadays. People’s interest in cryptocurrency never fades out, and with the radical growth of crypto popularity, the job markets will continue to expand and in return, have a positive impact on the global economy.

Financial Stability for The Unbanked

Despite the widespread poor economic conditions in developing countries, cryptocurrencies and digital money are now being used for online transactions. Let’s take an instance of Africa.

According to Chainalysis, a blockchain forensics firm, Africa’s cryptocurrency market grew by over 1200% between 2020 and 2021. They added that four African countries – Kenya, Nigeria, South Africa, and Tanzania – all rank in the top 20 for global crypto adoption.

This is mainly because 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, here, is mainly used as a way to solve economic issues associated with limited access to traditional banking systems and poor financial inclusion. People in countries with financial instability can now use cryptocurrency as a crucial tool for cross-border transactions to ensure economic equality, impacting the global economy majorly.

Increased Transparency of Transactions

Criminal activities such as money laundering and illegal use of financial assets have become too common in financial systems. In this case, a clear audit and monitoring system of every detail of transactions made helps as a combat to minimize these issues.

In centralized systems, malicious entities can also manipulate documents and transactions, and to avoid this, a digitized and automated system is needed that can track financial transactions at a deeper level.

Fortunately, blockchain and cryptocurrency also provide you with a distributed ledger that keeps information of every transaction made. This not only makes people feel empowered with the freedom and ownership of their digital money, but also minimizes the risk of fraud and corruption within a financial system.

This, once again, gets linked with people in the underdeveloped countries, where cryptocurrency’s utilitarian structure allows them to invest and transact with a global economy, making them part of a bigger picture and helping them boost their own economy and quality of life.

Accelerated Entrepreneurship

Because of its decentralized nature, cryptocurrencies act as a global economy in which all the users can participate in, which helps support new businesses and create more competition in financial services.

This fact especially attracts entrepreneurs that need a global audience with a wider reach, but due to international laws and exchange rates, they feel stuck. In fact, some cryptocurrency companies involve business owners in underdeveloped countries such as Africa, for financial transactions within European, American, and Asian companies to help create financial coverage and liberation of money through exchanges worldwide.

In an ever-growing digitized world, cross-border transactions have become primarily important and with cryptocurrency, this can happen without any hassle compared to traditional banking systems. In time, entrepreneurs will soon be able to invest in, save, and send money beyond borders, which will in turn reframe global business practices.

Conclusion

Cryptocurrency has been changing the socio-economic landscape throughout the world with its essential features. This digital money not only provides value and advantages for the economy, it also helps elevate people by empowering them and making them part of the global economy.

LYOPAY was created for the same purpose. We envisioned to help facilitate the use of cryptocurrencies as primary money on a daily basis, allowing more and more people to get involved and be a part of the modern finance world.

We formed an ecosystem filled with crypto products, with a goal to provide people with tools to use cryptocurrencies on a daily basis.

With LYOPAY, people get the opportunity to use cryptocurrency with the feeling of complete ownership and security. It is a platform to leverage payment solutions as the primary tool for driving adoption and user acquisition while simultaneously building trading and financial service solutions as major revenue sources.