Digital transformation is rapidly shaping the global financial landscape, and bitcoin, the pioneering decentralized cryptocurrency, stands as a symbol of this revolution.
While the global popularity of bitcoin is undeniable, there is an emerging trend highlighted in a recent survey conducted by Jack Dorsey’s Block, Inc., in conjunction with Wakefield Research: developing nations are showing growing optimism around bitcoin.
The survey, which spans 15 countries and collects information from 6,600 people, offers an intriguing snapshot of how perceptions about bitcoin are evolving. Between 2022 and 2023, bitcoin experienced significant price fluctuations. However, rather than being discouraged by these market dynamics, optimism about bitcoin‘s future has remained above skepticism on average. Vietnam, Brazil, China and Mexico led the way with the biggest increases in optimism. Nigeria, India and Argentina saw optimism tempered somewhat, but still remain well above average.
One of the central attractions of bitcoin has traditionally been its potential as a lucrative investment. But the data suggests a fascinating trend: While countries with established banking systems are slowly recalibrating their views on investing in bitcoin, developing nations increasingly view it as more than just a speculative asset. For these countries, bitcoin represents a symbol of financial freedom, a protection against economic instability and an opportunity to overcome traditional banking limitations.
A key highlight of the survey revolves around the close relationship between remittances, optimism and commitment to bitcoin. Traditional remittance channels, often characterized by exorbitant fees and tedious processes, appear to put bitcoin‘s value proposition as a neutral cross-border monetary network center stage. This, in turn, appears to be leading to increasing recognition of bitcoin as an effective tool for international remittances in developing countries.
For context, 86.8% of adults who own bitcoin are part of a household that regularly sends or receives remittances, and people at this intersection are much more optimistic about the future of bitcoin than those who don’t. to remittances. This is evident in countries such as Vietnam and India, which have high rates of household participation in the remittance economy. Stablecoins remain more popular than btc for remittances on average, but bitcoin‘s proposition as a fast, transparent and cost-effective remittance tool is gaining traction.
Without a doubt, government regulations play a critical role in shaping a country’s cryptocurrency landscape. While developed countries struggle with regulatory ambiguities, the narrative is markedly different in developing countries. However, India presents an intriguing scenario. Despite regulatory uncertainties, India exhibits the highest bitcoin ownership rate among the nations surveyed. Notably, a higher percentage of Indian women own bitcoins than men, indicating a socioeconomic shift in which women actively seek financial empowerment. Similarly, countries like Nigeria and Vietnam, despite their various economic challenges, are demonstrating growing enthusiasm for bitcoin, revealing an inherent confidence in its potential to address their unique financial needs.
At the other end of the spectrum, countries like China, with a stricter regulatory stance against cryptocurrencies, present a contrast. Although many in China claim to know bitcoin owners, very few said they own bitcoins themselves. This divergence underscores the critical role of government regulations in shaping citizens’ public stance on their relationship with bitcoin, while reinforcing the technology‘s antifragility. In fact, bitcoin cannot be banned.
Argentina and Brazil, two South American giants, are also showing a growing affinity for bitcoin. Both countries show higher ownership rates than most countries in the survey and are also more optimistic about bitcoin than average. In Argentina, where inflationary pressures persist, bitcoin is increasingly perceived as a protective shield against economic volatility. Meanwhile, Brazil appears to recognize bitcoin‘s multifaceted potential, from diversifying investment portfolios to its usefulness in acquiring goods and services.
This difference in perception between the two countries can be explained by the contrasting realities of their economies. While Brazil, South America’s largest economy, has enjoyed a fairly stable fiat currency since the arrival of the real in the 1990s, Argentina has been plagued by hyperinflation for decades. Brazilians can transfer reais to each other instantly and commission-free through Pix in a relatively stable financial system. As a result, they view bitcoin primarily as an investment. Argentinians, on the other hand, see bitcoin as “more reliable than the government-backed currency.”
Block’s comprehensive survey is a testament to the unique value proposition that a global monetary network without gatekeepers or policymakers presents to developing nations. As traditional global financial centers continue their cautious dance around bitcoin, developing countries, driven by a combination of economic aspirations and challenges, are emerging as the new vanguards of the bitcoin revolution. Their collective sentiment serves as a powerful reminder: bitcoin‘s appeal lies not simply in its market value but in its transformative potential to redefine the contours of global financial inclusion.
