Cryptocurrency in Developing and Underdeveloped Countries: An Economic Perspective

This article provides a comprehensive economic analysis of cryptocurrency adoption in developing and underdeveloped nations. It explores the potential of digital assets to enhance financial inclusion, reduce remittance costs, and serve as a hedge against inflation, drawing on recent datasets from the World Bank, IMF, and Chainalysis. The study examines real-world case studies from India, Nigeria, Kenya, and the Philippines to highlight adoption drivers and challenges. Key risks such as price volatility, regulatory uncertainty, technological barriers, and illicit usage are analyzed in detail. The article concludes with practical policy recommendations, including balanced regulation, tax clarity, stablecoin integration, infrastructure investment, and public financial literacy campaigns, emphasizing how cryptocurrencies can be leveraged for inclusive economic growth while mitigating potential harms.