Opinion by Ayush Ranjan, Co-Founder and CEO of Huddle01
The Web3 space has been marred by criticism that it’s merely a playground for speculators, where memes reign supreme over actual utility. Long-term builders and dreamers can lose faith in the industry’s future due to these narratives. However, amidst the noise, there are glimmers of hope.
Blockchain and Crypto: A Force for Good
Contrary to popular opinion, blockchain and crypto technologies are indeed having a profound impact on humanity, particularly in emerging markets. By empowering the underserved and underbanked, Web3 technology is combating the deficiencies in modern traditional institutions in finance and beyond.
The statistics are telling:
- 1.4 billion people worldwide remain unbanked (World Bank estimate for 2024).
- 300 million adults in Sub-Saharan Africa couldn’t access essential banking services (2021 data).
Decentralization is fundamentally about addressing uneven value distribution. The industry needs to support more builders who are committed to driving change.
Africa: A Hotbed of Crypto Adoption
Africa, particularly Sub-Saharan regions, are leading the charge in crypto adoption. Limited access to banking services has driven the demand for decentralized solutions.
- Sub-Saharan Africa had the highest Bitcoin (BTC) adoption rate in the world as of 2023.
- Nigeria ranked second globally on the Global Crypto Adoption Index in 2023.
Crypto serves practical purposes beyond speculation, particularly in emerging markets:
Functionality is Advancing
In these geographies, local entrepreneurs with first-hand insights into local problems are driving meaningful change. New technological innovations fit for purpose are emerging.
- Initiatives like CARE’s pilot programs in Kenya and Ecuador demonstrate the potential of crypto-based vouchers to provide access to essential goods and services.
- Non-fungible tokens (NFTs) have become accepted cross-border fundraising vehicles.
Acute Governance Problems Drive Adoption
Adoption is growing by necessity in some regions:
- Cardano founder predicts Bitcoin DeFi will dominate crypto within 3 years.
- The Indian city of Raipur put real estate records on the blockchain with Airchains, an innovative encryption startup.
Focus on Fund Adoption, Not Shiny New Things
While capital flows into crypto projects in emerging markets are increasing:
- Developed nations led with approximately $1.975 billion invested in Q3 alone (2023 data).
- Emerging markets struggled to secure comparable funding, highlighting the challenges projects face in these regions.
The recognition of potential in emerging markets has grown, and it’s time for crypto investment to pay attention to where mass adoption is happening:
Crypto is a functional tool, rather than a speculative asset, in emerging markets.
Conclusion
Web3 offers a beacon of hope for emerging markets. Blockchain and crypto technologies are having a profound impact on humanity, particularly in regions with limited access to traditional financial services. It’s time for the industry to support more builders who are committed to driving change.
The narrative around Web3 needs to shift from speculation to actual utility. The industry needs to focus on fund adoption, not shiny new things. Emerging markets offer a unique opportunity for growth and development, and it’s time for crypto investment to pay attention.
By supporting the builders who are driving meaningful change in these regions, we can unlock the true potential of Web3 and create a more equitable and accessible financial system for all.
About the Author
Ayush Ranjan is the co-founder and CEO of Huddle01. This article is for general information purposes only and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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