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Cryptocurrency for the SDGs
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THE MAIN IMPLICATIONS OF THE EXPANSION OF CRYPTOCURRENCY MARKETS FOR SUSTAINABLE DEVELOPMENT
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A) THE MAIN IMPLICATIONS OF THE EXPANSION OFCRYPTOCURRENCY MARKETS FOR SUSTAINABLE
DEVELOPMENT
By Pius Bigembe, Nov 2023
The expansion of cryptocurrency markets has both positive and negative implications
for the SD. Below are some potential impacts of cryptocurrencies:
Positive implications
Social impact: Cryptocurrencies help on many social impact activities, like
providing microloans to traders and businessmen in poor countries or financing
disaster relief works.
Accountability and transparency: Blockchain automations that support many
cryptocurrencies, are helpful to creating transparent and accountable systems for
tracing transactions and controlling funds. This can also help reduce bribery or
fraud and promote good governance.
Payments: Crypto money can provide a quick and affordable way to send
money to another country which it helps to reduce the cost of remittances, and
this improves economic development in poor countries that face financial
problems while sending money to other countries (avoiding charges).
Environmental sustainability: cryptocurrencies use less energy than classic
cryptocurrencies like Bitcoin. This can help to minimize the environmental
effects of cryptocurrency drilling.
Financial inclusion: Cryptocurrencies are good ways to improve monetary
services for persons who can’t access bank services, which can decrease poverty
and increase economic growth for such people.
Negative implications
Fraud: The cryptocurrency has scams, that cause investors to lose their money
and most people don’t trust it because of that issue.
Regulation: The regulatory landscape for cryptocurrencies is still emerging,
which makes people doubt these businesses and investors.
Environmental impact: The mining of cryptocurrencies, like bitcoin, consumes
an important amount of energy, that can sometimes contribute to climate change.
Generally, the implications of the expansion of cryptocurrency markets for sustainable
development are multifaceted and somehow complicated. It is necessary to carefully
take into consideration the possible risks and benefits of cryptocurrencies before starting
investing in them or using them. I think cryptocurrencies have both positive and
negative impacts, and those impacts depend on how they are advanced or used.
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