As a co-founder and CEO of Huddle01, I’ve had the privilege of witnessing firsthand the transformative power of blockchain and crypto technology. While many have dismissed Web3 as a speculative playground, I’m here to tell you that there’s more to it than meets the eye.
A Glimmer of Hope in Emerging Markets
Despite the media narratives that often focus on the get-rich-quick schemes and memes, there are indeed bright spots in the industry. Blockchain and crypto technology have the potential to genuinely benefit humanity, particularly in emerging markets where traditional institutions often fail to deliver.
The Unbanked: A Growing Concern
According to the World Bank’s estimates, 1.4 billion people worldwide remain unbanked as of 2024. Decentralization is about addressing uneven value distribution and providing equal access to financial services. The industry needs to support more builders who are committed to driving change.
Africa: A Leader in Crypto Adoption
Sub-Saharan Africa has been at the forefront of crypto adoption, largely 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/invest.
Crypto is Changing the Narrative
The adoption rankings are dominated by emerging markets. Countries such as India, Indonesia, and Nigeria lead the way, with Africa ranking second globally on the Global Crypto Adoption Index. As of 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 beyond speculation. Local entrepreneurs with first-hand insights into local problems drive meaningful change and technological innovations are developed to fit specific needs.
Initiatives Making a Difference
Pilot programs like CARE’s 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, further solidifying their utility.
Adoption by Necessity
Acute governance problems have led to adoption growing out of necessity rather than speculation. The Indian city of Raipur’s use of blockchain-based solutions for real estate records is a prime example, preventing forgery and reducing processing time from a month to three days.
Fund Adoption: A Matter of Priority
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. The recognition of potential in emerging markets has grown, but investment should now focus on where mass adoption is happening.
Crypto as a Functional Tool
In emerging markets, crypto is not just a speculative asset; it’s a functional tool providing equal access to financial services and driving meaningful change. It’s time for the industry to pay attention to where mass adoption is happening and support projects that are committed to driving real-world impact.
As the co-founder and CEO of Huddle01, I urge investors and builders to refocus on emerging markets, recognizing their potential as a catalyst for global economic growth and development. The future of Web3 lies not in speculative assets but in providing practical solutions to real-world problems.
The Future of Web3: A Call to Action
It’s time for the industry to shift its focus towards supporting projects that drive meaningful change, particularly in emerging markets where blockchain and crypto technology can have a profound impact. By doing so, we can create a more inclusive and equitable financial system that benefits all.
References
- World Bank: Unbanked population worldwide
- Chainalysis: Global Crypto Adoption Index
- CARE: Pilot programs in Kenya and Ecuador
Note: This article is for general information purposes only and should not be taken as investment advice. The views expressed are those of the author alone and do not necessarily reflect the views of Cointelegraph.
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