How can decentralized payments become an “economic gateway” for developing countries?

The rapid adoption of Web3 payments in developing countries is driven by a combination of economic, regulatory, and grassroots factors, each contributing to the acceleration of this trend.

The world of financial transactions is being transformed, driven by the emergence of Web3 payment solutions.

While this evolution is visible across the globe, what is truly remarkable is that it is being led by developing countries.

The active exploration of Web3 payment solutions reflects the flexibility and adaptability of developing countries, and puts them at the forefront of financial innovation.

From revolutionary decentralized money transfers to the democratization of payment tools, the rise of Web3 payments in developing countries heralds a sea change in how we think about and participate in financial transactions.

In the uncharted “decentralized” realm, developing countries are expected to surpass mature economies such as the United States and usher in a new era of vibrant global economy.

For a long time, developing countries have been facing many challenges in financial inclusion, such as expensive and inefficient economic systems.

Traditional transfer methods usually require a transfer fee of 10% or more, cross-border payments take up to 5 working days to process, and some people often do not have a permanent address, government identification documents or fixed income, etc., which limits the convenience of transfers.

However, the emergence of Web3 technology is reshaping this landscape. It provides a new solution for those who are excluded from the traditional financial system.

In developing countries, Web3 daily payments have also completely changed the way of transfers at the macro and micro levels.

Whether it’s buying food, paying rent or sending money across borders, Web3 everyday payments not only simplify the process of sending and receiving money, but also reduce reliance on intermediaries, thereby alleviating the “customer identification” standards and delays associated with banks.

At the same time, using Crypto assets for payments is good news for business owners, as the average return on investment (ROI) of businesses that adopt Crypto assets for payments has reached 327%, and the rate of new customer acquisition has also surged by 40%.

Looking around the world, we can see some examples of developing economies that have successfully implemented Web3 transfers, such as Brazil.

From P2P Crypto asset exchanges to decentralized protocols that facilitate cross-border transactions, these platforms provide unprecedented transparency and security, rebuilding people’s trust in the previously suspicious financial system.

In fact, the shift to Web3 payments holds great promise for developing countries. By removing barriers to financial access and promoting greater financial inclusion, it paves the way for economic empowerment and resilience.

As developing countries embrace the transformative potential of Web3 payments, they are not only closing the gap with developed countries, but also becoming trailblazers for the continued development of global finance.

The rapid adoption of Web3 payments in developing countries is driven by a combination of economic, regulatory, and grassroots factors, each of which has contributed to the acceleration of this trend.

At the same time, the impact of this adoption extends far beyond the borders of these countries, helping to reshape global economic and financial trends.

The adoption of Web3 payments in developing countries is not just for convenience, but in response to urgent economic and social needs.

In countries plagued by hyperinflation, such as Venezuela and Argentina, traditional currencies are already in jeopardy, and Crypto assets provide these countries with a lifeline, providing both a stable store of value and a hedge against the risk of economic volatility.

Similarly, concerns about financial freedom and government overreach are driving adoption of Crypto assets in regions such as Afghanistan, where the ability to freeze assets can have dire consequences, especially for marginalized groups such as women.

With an urgent need for alternative solutions, the regulatory environment in many developing countries is increasingly conducive to the adoption of Web3 technologies.

Recently, South Africa's FSCA clarified Crypto asset regulations, sparking formalization efforts.

Recognizing the potential benefits of Crypto assets, African Union members in many regions continue to take positive steps to establish frameworks that support innovation and investment in the field.

By providing clarity and regulatory certainty, these initiatives have encouraged a thriving ecosystem of Web3 solutions, further driving adoption and fueling economic development.

Grassroots movements and entrepreneurial initiatives are playing an increasingly important role in driving global adoption of Web3 payments.

From community-driven projects to innovative startups, these initiatives demonstrate the bottom-up demand for alternative financial solutions that address the unique needs and challenges faced by individuals and businesses.

Grassroots Crypto asset adoption continues to surge in low- and middle-income (LMI) countries, with total adoption set to surpass pre-bull run levels from Q3 2020 onwards.

Notably, 40% of the world’s population lives in low-income countries, more than any other single income category.

As these grassroots movements grow and develop, they will lead the world into a new era of Web3 applications. The Web3 revolution has just begun, and the world is watching.