The digital revolution has taken a decidedly different turn in developing countries than it did in developed countries. The heydays of the “old internet” were desktop based, with Bill Gates’ famous “a computer in every home” looking to become a reality for many in Europe and the US. However, the digital revolution only really took off when Apple created a whole new industry with its iPhone – the smartphone market.
Today, almost every family has at least one portable computing device, and the services that have mushroomed in the wake of this paradigm of computing power has definitely been noticed by financial companies that work in developing markets. Banking is mobile, and payments for everything from bread to top-ups are going mobile as well.
Enters Electroneum (ETN)
While cryptocurrency and blockchain applications have so far been the domain of power-hungry desktops, the real value of any app in this modern world is how mobile-focused it is. Almost everyone, no matter what sector of society they belong to, has a smartphone. So having a mobile-focused view is a blessing that many do not take into account.
While many cryptocurrencies have mobile based options, and most of the exchanges have smartphone apps, this is not the same as building for mobile from the ground up, which is precisely what Electroneum had in mind when the cryptocurrency was being constructed.
It is a cryptocurrency that is built for mobile from the ground up and has the app, and back end technology to show it. Since it is a relatively new entrant into the market, coming in January 2018 which was around the same time as the crypto crash of 2018, the crypto has lost a lot of its value that it gained in an ICO.
The great thing about Electroneum is that it is made with financial regulations in mind. Their KYC/AML procedures are part and parcel of their technology, and they do not skimp out on it. The group behind Electroneum is taking its role in the market place very seriously and looking to become a competitor to payment platforms and other cryptocurrencies alike.
It could become, quite possibly, the killer app that drives wholesale blockchain adoption into the mainstream. The quick, efficient and almost instantaneous transfers of value in an easy way between both average users and consumers/businesses, means that it is an exciting option for small businesses in developing countries to look at.
South Africa as a stepping stone
South Africa is perhaps the best example of how a mobile-focused cryptocurrency can have a significant effect when applied correctly. ETN’s marketing is hyper-focused on South Africa for two reasons. The first reason is the substantial tech sector there – which can push adoption by getting the news out to the general public and help with the support of the cryptocurrency.
The second and far more critical reason is that there are still many who do not have a computer or a functional bank account. The vast majority of the people in this situation do, however, have a mobile phone and use airtime transfers and micro-banking services to transact, as well as cash. The crime scene in the country is such that a cryptocurrency that can replace cash is perfect for those who already have a mobile phone – which almost everyone does.
If Electroneum can continue its push into developing countries, and back up its KYC/AML procedures to ensure that they are compliant with local regulations, they could soon be a force to be reckoned with. The current figure of 3 million users is an excellent starting point, but they will need quite a lot more to become a mainstay in the mobile payments market in South Africa and beyond.
However, if they do manage to break through a general population resistance barrier, then it will spell the beginning of the cryptocurrency in many developing countries, and we could finally be seeing the Paypal of crypto come to the fore.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.