One of the most commonly cited use cases for cryptocurrency today is as an alternative form of payment — payments that are faster, cheaper and more secure than what the legacy banking system provides. The act of paying is the product of a currency and a payment method, and the reason for the cryptocurrency industry’s interest in developing economies is because their payments are broken on some fundamental level, due to factors such as hyperinflation.
If your currency is broken, then payments are broken as well; you can’t safely store or transact with a currency that nobody wants because it consistently loses enormous amounts of value. When that happens, the economic impacts are immediately felt, as we’re seeing today in Venezuela, Argentina, and Turkey. People need a better way to pay and get paid because the status quo is no longer working. In Venezuela, people need to carry a backpack full of cash to pay for a coffee and merchants can’t afford the FX impact of waiting for credit card purchases to settle. This creates the need for a solution that cryptocurrencies can provide.
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