Developing countries find their haven in the Crypto Market / Digital Information World

Many developing countries have been through a tough time since the COVID outbreak. The scale of the economic contraction is pushing them to the brink of growing responsibility and tension to avoid future bankruptcies and protect the needs of their people.

To combat inflation in developing countries, the government has started investing in cryptocurrencies. The Middle East has long been one of the smallest markets when it comes to investing in anything like cryptocurrency.

However, since the inflation boom, the countries of the Middle East have faced many challenges, and in order to overcome these challenges, they have started to take an interest in cryptocurrencies. Both the Middle East and North Africa (MENA) have become fertile ground for crypto.

Chainalysis researchers recorded the increase in received cryptocurrency in Middle East countries. 48% of crypto assets MENA received in one year. Not only that, they have benefited more than $566 billion from the cryptocurrency. MENA has left other countries behind to make more profit. Latin America is said to be the second fastest growing crypto market at 40%, while North America is at 36%.

The growth of the crypto market is increasing due to the high rate of inflation in the developing world. Egypt and Turkey have faced ups and downs during inflation to keep up with cryptocurrency investments. Chainalysis reported that this drop has led to investments in crypto to stabilize the financial complications.

Chainalysis also testified that MENA provides a stable foundation for more than 30 other countries with higher crypto adoption rates. For example, according to the report published by the Global Crypto Adoption Index, Egypt ranks 14th, while Turkey ranks 12th and Morocco ranks 24th.

Moreover, in 2020 Turkey has experienced the biggest decline of its economy. Turkey is considered to be the fastest growing crypto market in the MENA and the main reason behind the surge is inflation in the economy. The Turkish lira is said to be at its lowest against the US dollar. The Egyptian pound has also weakened increasingly.

Thanks to the crypto market, these countries are trying to balance their financial problems by investing in crypto. Turkey has received $192 billion in cryptocurrency, while Egypt has its own game to keep up with its competitors and has received $222 billion.

After observing the increase in the volume of crypto savings transactions in Egypt, other countries with rising inflation have decided to learn from it. For example, Morocco tried to change the course of its government by turning to the cryptocurrency market. They have decided to fully embrace the new culture to protect their consumer interests and prevent the collapse of the government.

Meanwhile, the Egyptians are strengthening ties with the biggest investors, the United Arab Emirates. Egypt and the United Arab Emirates have struck a pact to build a crypto-based remittance corridor to fuel their investments. The UAE is considered to be the third largest crypto market in the MENA.

Although the crypto market is a great opportunity for all developing countries, it is also home to wealthy countries. The Gulf Cooperation Council reported that the UAE, Saudi Arabia and Dubai are the richest in the market and not just in the Middle East. They also reported that the crypto market is helping developing countries balance their economic conditions.

Despite this fact, Afghanistan has refused to invest in crypto assets ever since the Taliban intervened. However, countries like Vietnam, the Philippines and Ukraine are growing fast and benefiting from the market.

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