As the Web3 ecosystem continues to evolve, it’s easy to get caught up in the hype surrounding the potential for overnight millionaires and meme-based market movements. However, this attention can be misleading, creating a narrative that suggests Web3 is nothing more than a speculative playground.
The Reality of Web3: A Force for Good
But there’s another story unfolding – one that highlights the genuine impact of blockchain and crypto on humanity, particularly in emerging markets. The numbers are staggering:
- 1.4 billion people worldwide remain unbanked, according to the World Bank (2024).
- 300 million adults in Sub-Saharan Africa alone couldn’t access essential banking services as recently as 2021.
- Africa is leading the charge in crypto adoption, driven by limited access to traditional financial services.
In these regions, crypto is not just a speculative asset; it’s a practical tool for everyday transactions, savings, and business growth. The numbers speak for themselves:
- Developing nations dominate the rankings on Chainalysis’ 2024 Global Crypto Adoption Index.
- Sub-Saharan Africa had the highest Bitcoin adoption rate in the world by mid-2023.
- Nigeria ranked second globally on the Global Crypto Adoption Index.
Functionality is Advancing
In emerging markets, we’re witnessing a shift from speculative use cases to practical applications of crypto. Local entrepreneurs are driving meaningful change with innovative solutions tailored to local problems.
Initiatives like CARE’s pilot programs in Kenya and Ecuador demonstrate how crypto can provide access to essential goods and services while fostering economic recovery from the COVID-19 pandemic. Non-fungible tokens have become accepted cross-border fundraising vehicles.
Necessity is Driving Adoption
Acute governance problems can also drive adoption by necessity. Recent examples include:
- The Indian city of Raipur using blockchain-based solutions to prevent forgery and reduce processing time for real estate records.
- The increasing recognition of the potential in emerging markets, with a growing focus on supporting builders committed to driving change.
Fund Adoption, Not Shiny New Things
While capital flows into crypto projects in emerging markets are becoming more significant, they still fall short compared to funding available for projects in well-developed nations. Developed countries, particularly the United States, led with approximately $1.975 billion invested in Q3 alone.
Emerging markets struggle to secure comparable funding, with Africa’s total venture capital investment around $1 billion for the entire year. This highlights the challenges projects face in these regions and emphasizes the need for more targeted support.
Conclusion
The future of Web3 is not just about speculation; it’s about creating meaningful change in emerging markets. As we move forward, it’s essential to recognize the potential of crypto as a functional tool rather than a speculative asset. By supporting builders committed to driving change and focusing on mass adoption, we can create a more inclusive and equitable ecosystem.
References
- World Bank (2024). Global Findex Database.
- Chainalysis (2024). 2024 Global Crypto Adoption Index.
- CARE (2023). Pilot Programs in Kenya and Ecuador.
