Bitcoin and other cryptocurrencies are experiencing mass adoption worldwide, especially in emerging markets where they offer solutions to people’s day-to-day problems. However, this trend is not being seen in the United States or Europe. According to Daniel Fogg of IOV Labs, a foundation supporting smart contract platform Rootstock and other projects, people in emerging markets are looking for ways to protect their income, access US dollars, and receive loans. Many people are having their first meaningful digital banking experience on crypto rails. Fogg sees this trend continuing in the coming years, making emerging markets the future of the crypto space.
Two major crypto use cases are driving the growth in emerging markets. Decentralized finance (DeFi) solutions are attracting those seeking outsized returns and alternative investment opportunities. Meanwhile, other people are acquiring stablecoins pegged to the US dollar for savings and daily payments in economies dealing with inflation, devaluation, and other monetary challenges. Developing DeFi products for these areas is a key strategy for Rootstock and its sister company, IOV Labs, to tap the “scale opportunity” in retail finance that emerging markets provide.
Although Bitcoin is a remarkable innovation, it alone is simply not enough, according to Fogg. For billions of users seeking various use cases such as paying, saving, borrowing, lending, and retail finance, experimentation is needed. Fogg emphasizes the need for a versatile approach and not be held back by tradition and conservatism. He believes emerging markets are leading the way in crypto adoption because these countries face significant macroeconomic challenges. Countries such as Turkey, Colombia, Nigeria, and Argentina are already exemplifying what Fogg hopes the crypto space will become.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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