Byline: Hannah Parker
One of the primary candidates for Nigeria’s next President, Adewole Adebayo, has created as part of his plans to use blockchain technology and cryptocurrencies to create up to 30 million jobs for locals. The unemployment rate is one of the country’s primary concerns, reaching nearly 10% in 2022. Fortunately, the President has plans to utilise cryptocurrency to create employment opportunities.
How Crypto Will Come to the Rescue
Adewole Adebayo, the presidential candidate of Nigeria’s Social Democratic Party (SDP), recently appeared on television and promised to solve the country’s unemployment problem by deploying various technologies, including blockchain and digital currencies.
The 50-year-old attorney discussed the idea with the US Black Chamber of Commerce and the National Chamber of Commerce. He has served as a broad adviser to members of these organisations, ensuring that numerous job positions have been created around the world in recent years: “I told them, ‘Look, you know we have done these things before in many countries, and I have been your adviser, and we have done all of these things. In my country, I know the objective conditions we can create for you to come to Nigeria, and we can create jobs.”
Nigeria’s unemployment rate has steadily increased over the last decade, reaching nearly 10% in 2022. Adebayo believes his administration will eventually join forces with 2,000 domestic crypto companies to reduce those figures significantly.
According to the President, “We discovered that we can create 10-30 million jobs – using 2,000 companies and bringing the production they are doing into the country.”
Locals React Positively Toward Cryptocurrency
Adebayo’s involvement with the cryptocurrency sector may earn him additional votes, as locals have already expressed support for the asset class.
According to a KuCoin study published in April 2022, 33.4 million Nigerians (35% of those aged 18 to 60) owned or traded digital assets in the preceding six months. According to the study, the primary reason for the widespread adoption is a lack of appropriate fiat-based opportunities in many parts of the country.
The country’s current inflation rate surpassed 20% in 2022, reaching a 17-year high. The hostile macroeconomic conditions, combined with the depreciation of the Nigerian Naira, prompted many locals to invest in bitcoin and stablecoins to preserve some of their wealth.
According to another recent survey, Nigeria is the most crypto-curious country in the world. Locals are most likely to Google the phrases “buy crypto,” “invest in crypto,” and “buy the dip.”
Cryptocurrency’s Potential to Change Developing Countries
Cryptocurrency is far more than a financial innovation; it is a form of social, cultural, and technological progress. Cryptocurrencies can potentially boost the economy due to their ease of access. Cryptocurrencies are digital assets that use cryptographic algorithms to manage them.
In an interview with Bitcoineer official, they contested that traditional financial systems can be prohibitively expensive and time-consuming. Because many developed countries rely on the remittance market, these costs and delays are frequently viewed as a disadvantage of traditional financial systems, and cryptocurrencies are viewed as a solution.
Cryptocurrencies are a viable alternative to traditional remittance methods, allowing for quick and low-cost international money transfers. They are decentralised networks that eliminate a middleman. Because users can transfer money without dealing with an intermediary authority, international fund transfers are faster than traditional ones. Unlike traditional funds transfers, which can take days to process and approve, cryptocurrency transfers are typically completed in minutes, requiring only the block containing your transaction to be confirmed by the network before it is thoroughly settled and the funds are available.
As a result of traditional financial systems, developing countries have faced decades of restricted banking policies and deteriorating infrastructure, with unpredictable inflation and volatile exchange rates continuously undermining the value of their fiat currency. As a result, cryptocurrencies have emerged as a viable alternative to weak national currencies. Because of their decentralised nature, they are not regulated by governments or banks, so access cannot be restricted and their operation cannot be altered. They are also not affected by market fluctuations in the same way that fiat currencies are.
Furthermore, citizens in developing countries frequently regard fiat currencies as untrustworthy. However, because it is based on a distributed digital ledger where every transaction is recorded and cannot be modified, the blockchains that power cryptocurrencies have increased user trust. Transactions are recorded and cannot be reversed, reducing the possibility of fraud. This also reduces the possibility of transaction manipulation.
The reasons for the rising popularity of cryptocurrencies in developing countries appear to point to it as a solution to the numerous issues that developing countries frequently face with the traditional financial market. Despite its rapid growth and widespread adoption, cryptocurrency still has some drawbacks, and its consequences should be considered.
Since cryptocurrency is a decentralised currency, it can help protect people from unstable economies. It enables people to take control of their finances and invest in something safe, transparent, and easily accessible. Encouraging people to save money and promoting financial literacy can help stimulate the economy. Furthermore, this can help African countries’ economic activity. People who do not have access to financial institutions or banking services can use cryptos to pay for goods and services. Crypto transactions are also thought to be a more secure way of doing business.