Bancor brings cryptocurrency to the poor
While first-world countries consider options on how to regulate crypto, third-world countries are simply adopting it. By definition, this is more than logical – while there’s not enough access to money and resources in their traditional sense, there’s no resistance to the alternative currency.
As part of the Bancor initiative, residents of Kenya’s poorest neighborhoods have recently begun embracing crypto for community purchases, local sundries, and even educational fees. Named after the neighborhood of Gatina in Nairobi, the cryptocurrency Gatina-pesa is available through the Bancor Wallet in combination with the POA Network.
Started by the Californian physicist-turned-development economist, Will Ruddick, the Gatina-pesa community currency project has been rapidly growing. With the involvement of various community currencies, broadly referred to as the Sarafu-Credit system, Ruddick has partnered with Bancor to scale it up and develop into a larger vibrant crypto ecosystem.
The increase in crypto usage in Kenya reflects the broader trend of a rapidly increasing popularity of cryptocurrency in emerging economies in general. Venezuela, where the value of Bitcoin skyrocketed due to the economic crisis and growing inflation, is one of the prime examples. As highlighted in an in-depth coverage released by Bloomberg, in a lot of developing countries, including Kenya, the percentage of residents that use digital currency is a lot higher than those holding bank accounts. Along with the recent regulatory approvals accepted in first- and second-world countries, the trend of a rapid adoption of crypto by emerging economies might turn digital currency into the mainstream a lot sooner than anticipated, possibly even within the next few years, financial experts say.