The government of Kuwait is still trying to understand the new systems and how they affect their economy. The Central Bank of Kuwait has stated that Bitcoin is not a digital currency and thus not legal tender. Visit the Crypto Genius Official site for more information on bitcoin trading.
At the same time, it was reported that the country intends to create its cryptocurrency as an alternative payment system, which can be used in conjunction with existing fiat currency.
8 ways bitcoin positively affects the economy of Kuwait
- Bitcoin will elevate Kuwait’s position in the world economy. Bitcoin and other cryptocurrencies will make the country more transparent and independent from third parties such as banks, which can (and often do) change rates without warning.
- There’s a reason Bitcoin is decentralized. Governments of many countries manipulate currency values or even create new ones out of thin air, making citizens of those countries have less purchasing power. For example, this is standard practice in Zimbabwe, and the current situation with their fiat currency is chaotic.
- Bitcoin gives people an opportunity to store and invest money without losing its value and disappearing overnight. Savings in local currencies can be devalued by inflation or other corruption and financial crisis factors.
- Bitcoin can assist small enterprises in establishing a name and gaining global exposure. It is unnecessary to open a bank account or deal with annoying bureaucracy – all you need is access to the Internet and a smartphone.
- Lower prices for customers who pay in digital currency such as bitcoin. Merchants save on processing fees and transfer costs. This allows small businesses to compete with multinational companies.
- The impact of bitcoin on trade and the economy is growing every day, so the sooner Kuwaiti citizens realize this, the better it is for them. Moreover, as more people worldwide begin to use cryptocurrency, it becomes increasingly difficult for the government to ignore its power.
- The government might have to revise its current policies in the future. As a result, there is a possibility that the world will look much different when it comes to financing, and it is better to be prepared for changes rather than being left behind.
- Bitcoin doesn’t discriminate. Everyone is equal and can join as soon as they want. Kuwait has an opportunity to become a pioneer of the financial sector and attract international investors with its open-minded approach if it decides to treat digital currencies equally.
There are many ways how using bitcoin benefits economies around the world, even though some people still consider cryptocurrency a novelty or a passing trend. However, once governments and financial institutions learn to accept cryptocurrencies, the world will look very different.
7 ways bitcoin negatively affects the economy of Kuwait
- The lack of regulations makes trading in cryptocurrencies very risky. As a result, the market is volatile, and at times, the bitcoin’s value can drop 20% within just one day.
- The Kuwaiti economy has a lower than average rate for credit card transactions than other countries in the region. As a result, users might be more inclined towards alternative payment methods in the future.
- The number of people using alternative payment methods is not growing fast enough. If the entire world begins to use cryptocurrencies, there will be nothing left for Kuwaiti citizens to spend their money on!
- Cryptocurrencies make money laundering much more accessible. There will be no need to create fake businesses or shell companies that can then be used to hide dirty money from criminal activity such as drugs and weapons trafficking.
- Digital currencies might directly compete with the Kuwaiti fiat currency. If you can easily send money in just a few seconds, why would anyone want to use their government’s cash?
- Cryptocurrencies are not regulated or controlled by any external organization or institution, leading to losses due to scams and theft.
- Buying, selling, and trading cryptocurrencies are not illegal, but there are no laws about them, which can inconvenience both parties.
Every day, the idea of bitcoin becomes more and more famous. People must adapt to emerging innovations as rapidly as feasible since the world is changing exponentially. Kuwait has a lot of catching up, but there are positive signs on the horizon.