The Global South set to be key driver in Bitcoin growth
IN recent years, Bitcoin has seen an unprecedented surge in global interest, adoption, and value.
While much of the attention has historically been on Western nations and major financial hubs, a growing and often underappreciated force is driving the world’s largest cryptocurrency’s ascent: the Global South.
Countries in Africa, Latin America, Southeast Asia, and parts of the Middle East are becoming critical players in the crypto revolution, and their role is poised to expand significantly in the coming years.
One of the most significant reasons Bitcoin is gaining traction in the Global South is due to widespread economic instability and currency devaluation in many countries.
Economies in regions like Latin America and Africa have historically struggled with hyperinflation, political corruption, and unreliable banking systems, making their local currencies volatile and prone to collapse.
For example, countries like Venezuela and Argentina have experienced hyperinflation rates that have severely devalued their national currencies.
In Venezuela, inflation rates reached over 1,000% in 2018, rendering the bolivar nearly worthless. Today it’s around 400% - which is still utter madness. In such circumstances, people often look for more stable alternatives to preserve their wealth, and Bitcoin provides a viable solution.
Unlike traditional currencies, Bitcoin is decentralized, meaning it isn’t controlled by a central bank or government, and its fixed supply (capped at 21 million) makes it immune to inflationary pressures.
As citizens of these nations seek refuge from their unstable currencies, the crypto has become a preferred store of value and medium of exchange, especially for those without access to stable financial institutions.
Another key reason for the rise of Bitcoin in the Global South is the lack of access to traditional banking services.
According to the World Bank, roughly 1.7 billion people globally remain unbanked, meaning they don’t have access to a bank account. Many of these people are concentrated in the Global South, where poverty, lack of infrastructure, and distrust in government institutions have left millions without basic financial services.
Bitcoin and other cryptocurrencies offer a way for these populations to access financial tools without relying on traditional banking. All that’s needed is a smartphone and an internet connection, both of which are becoming more widespread even in remote and economically disadvantaged areas.
Mobile wallets and peer-to-peer Bitcoin transactions allow people to send, receive, and store money securely, bypassing the need for local banks.
This democratisation of finance offers an unprecedented opportunity for financial inclusion, empowering individuals who’ve previously been excluded from the global economy to participate in it directly.
The rise of remittances
Remittances are a critical part of the economy in many countries in the Global South, particularly in regions like sub-Saharan Africa, Southeast Asia, and Latin America.
Millions of people who migrate to wealthier countries send money back home to their families. According to the World Bank, remittances to low- and middle-income countries reached $656 billion in 2023, a vital source of income for millions of households.
Traditional remittance services like Western Union and MoneyGram charge high fees and can take days to process, making them expensive and inefficient. Bitcoin offers a much more efficient alternative.
By using Bitcoin and blockchain technology, remittances can be sent instantly and at a fraction of the cost. As awareness of this advantage grows, more and more people in the Global South are turning to the digital asset to send and receive remittances, further boosting its adoption.
The Global South is also emerging as a hotbed for innovation and entrepreneurship in the cryptocurrency space.
Countries like Nigeria, Kenya, and El Salvador are leading the way in Bitcoin adoption and blockchain innovation. For example, Nigeria has one of the highest rates of Bitcoin usage in the world, driven by a young, tech-savvy population that has embraced the digital economy.
Governments are also starting to see the potential of Bitcoin. El Salvador became the first country to make Bitcoin legal tender in 2021, with the aim of reducing remittance costs and promoting financial inclusion. Other countries in the region are watching closely to see if crypto can help solve long-standing economic problems, from inefficient banking systems to corruption and inflation.
In Africa, the rise of cryptocurrency-based startups is providing new opportunities for financial innovation. Blockchain technology is being used for everything from micro-lending to supply chain management, showing how decentralized systems can thrive in regions where traditional infrastructure is lacking.
Finally, Bitcoin’s appeal in the Global South is growing as a hedge against the economic policies of Western countries.
In times of global financial crises, policies in the United States and Europe, such as quantitative easing and low interest rates, can have adverse effects on emerging economies by increasing inflation and devaluing their currencies. By turning to the crypto, countries ‘down south’ can reduce their dependence on the US dollar and other fiat currencies.
Bitcoin’s ability to empower people in the Global South is, I believe, going to be one of the most transformative factors in its future, offering the potential to reshape economies and create new opportunities where traditional systems have failed.
Nigel Green, deVere Group CEO and founder
