If you take a look at one of the United Nations sustainable development goals, you’ll see that the organization has acknowledged that reducing inequality around the world is a major objective.
SDG 10 refers to the economic pain that the world’s poor are feeling around the globe, and analysts highlight some trends and influences that could be important in how we build tomorrow’s more equitable economy.
The decline of global remittances
One major problem being observed by professionals at the World Bank and elsewhere is a declining global remittances of about 14%, where migrant workers from economically weak countries are sending less money back to their families.
As for the sources of this change, analysts suggest that even these host countries are seeing various kinds of economic weakness. Some trace back to the coronavirus, and others emerging from a riotous trade war between two nations considered two of the world’s top superpowers, the United States and China.
The semiconductor shortage now evident in the technology industry is just one example of economic fallout from massive trade hostility in geopolitics. Another is falling agricultural exports. Whether it’s microchips or grain, though, the impact of capricious protectionism in a global economy so tightly interconnected is something the world could not afford as a pandemic stresses markets in unprecedented ways.
Against this backdrop, the world’s poor are feeling the impact. Economists also point to inflation and weak national currencies as barriers to greater support for the poor and unbanked, or those marginalized by economies roiled with in equity. Even economists sometimes warn of the consequences of widespread inequity, acknowledging the common relationship between economic instability and civil unrest.
Cryptocurrency and solutions
With that said, cryptocurrency is offering some a road map to move forward in today’s challenging economic environment.
First, as new decentralized finance tools break down barriers, it becomes easier for those in unstable or poorer countries to work for multinationals with fewer friction points in global enterprise. Then, too, it also allows people in less vibrant economies to start their own businesses in more diverse ways, reaching out across the globe for economic opportunity. In a piece at DW titled “Africa’s Quiet Cryptocurrency Revolution,” African startup leaders Elisha Owusu Akyaw and Emmanuel Tokunbo Darko talk about how this works.
“It’s easier for Africans to understand (new cryptocurrency systems) as opposed to people in the West who already had more financial inclusion and easy access to banking systems,” Darko says.
These factors in defi adoption are evident in some analysis of the African continent, where nations traditionally seen as preindustrial are quickly modernizing and leapfrogging the advances of other modern first-world nations. Much like the move to mobile devices that skipped the massive infrastructure and slow technology build of the landline, cryptocurrency may become the piece of the puzzle that allows African economies to skip the PCI and card-based systems for fiat currencies that were cutting-edge at the turn of the millennium.
To get an idea of how this is working, visit CoinZoom, where the ecosystem offers many trading pairs, low trading fees, and other support tools. Within this environment, CoinZoom offers the ZoomMe global remittance engine that helps senders and receivers to avoid fees, costs, and burdens associated with traditional routes like Western Union or other third-party bankers.
What does it mean to create a global remittance engine? It’s part of a strategy to free up money to move across national boundaries in ways that are regulated and controlled but not encumbered by traditional banking processes. In addition to this sort of functionality, CoinZoom also offers a range of crypto Visa cards in partnership with the top PCI brand, with their own rewards and earning structures. Take a look, and you’ll see some of the synergies that are driving prosperity today in the crypto world.