As we navigate the complex landscape of Web3, it’s easy to get caught up in the hype and speculation surrounding its potential. Many claim that Web3 is nothing more than a playground for millionaires, where memes reign supreme over actual utility. Long-term builders and dreamers can quickly lose faith in the industry’s future, given the media narratives surrounding it. However, despite the noise, there are bright spots in the Web3 ecosystem.
Blockchain and Crypto: A Force for Good
Blockchain and crypto technology have the potential to genuinely benefit humanity, especially in emerging markets. By providing access to financial services and combating the deficiencies of traditional institutions, Web3 technology is driving societal shifts that prioritize the underserved and underbanked.
The Need for Investment
As the industry continues to grow, it’s essential that investment follows suit. Emerging markets, which are leading the charge in crypto adoption, require significant support from builders who are committed to driving change.
Emerging Markets Dominate Adoption Rankings
According to the World Bank, an estimated 1.4 billion people worldwide remain unbanked as of 2024. Decentralization is fundamentally about addressing uneven value distribution, and the industry must prioritize supporting more builders in emerging markets who are committed to driving change.
Africa: A Region Leading the Charge
Sub-Saharan Africa is one of the regions leading the charge in crypto adoption, primarily due to limited access to banking services. In 2021, around 300 million adults in Sub-Saharan Africa couldn’t access essential banking services, severely limiting their ability to conduct everyday transactions and save for the future.
Crypto Adoption: A Game-Changer
Crypto is changing this narrative by providing a functional tool for people in emerging markets. According to Chainalysis’ 2024 Global Crypto Adoption Index, developing nations dominate the rankings, with countries such as India, Indonesia, and Nigeria leading the way.
Sub-Saharan Africa’s Bitcoin Adoption Rate
As of 2023, Sub-Saharan Africa had the highest Bitcoin (BTC) adoption rate in the world, with Nigeria ranking second globally on the Global Crypto Adoption Index. By mid-2023, Sub-Saharan Africa accounted for 2.3% of global cryptocurrency transaction volume, receiving around $117.1 billion in on-chain value.
Functionality is Advancing
In emerging markets, we’re witnessing the functional use of crypto rather than just its speculative use case. Local entrepreneurs with first-hand insights into local problems drive meaningful change, and new technological innovations are being developed to meet the needs of these communities.
Initiatives Like CARE’s Pilot Programs
Initiatives like CARE’s pilot programs in Kenya and Ecuador demonstrate how crypto can provide access to essential goods and services while fostering economic recovery from the COVID-19 pandemic. Non-fungible tokens have become accepted cross-border fundraising vehicles.
Adoption by Necessity
Recent examples, such as the Indian city of Raipur’s adoption of blockchain-based real estate records with Airchains, demonstrate how acute governance problems can drive adoption in emerging markets.
Fund Adoption, Not Shiny New Things
While capital flows into crypto projects in emerging markets are becoming more significant, they still fall short compared to the funding available for projects in well-developed nations. In 2023, developed nations led with approximately $1.975 billion invested in Q3 alone, while emerging markets struggled to secure comparable funding.
The Recognition of Potential
Lately, there has been a growing recognition of the potential in emerging markets. Crypto investment should now prioritize where mass adoption is happening, rather than chasing shiny new things.
Conclusion
As we continue to navigate the complex landscape of Web3, it’s essential that we recognize the bright spots and prioritize supporting builders who are committed to driving change in emerging markets. By doing so, we can unlock the true potential of blockchain and crypto technology to genuinely benefit humanity.
About the Author
Ayush Ranjan is the co-founder and CEO of Huddle01.
Disclaimer
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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