Good question. Choosing an ideal cryptocurrency for a developing country depends on several factors such as economic stability, digital infrastructure, regulatory policies, and social needs. Here’s a list of the best candidates and why they could be useful:
1. Bitcoin (BTC)
Advantages: Globally recognized, high liquidity, decentralized.
Ideal for: Protecting against inflation in unstable economies or with weak local currencies (like Venezuela or Zimbabwe).
Disadvantage: High transaction costs and relatively low speed.
2. Ethereum (ETH)
Advantages: Supports smart contracts and decentralized applications (dApps).
Ideal for: Countries looking to create decentralized financial systems or digital identity solutions.
Disadvantage: Gas fees can be high during times of high demand.
3. Stellar (XLM)
Advantages: Fast, cheap, and designed to facilitate cross-border payments.
Ideal for: Remittances, financial inclusion, central banks looking to tokenize their currencies.
Disadvantage: Not as well-known or adopted as Bitcoin or Ethereum.
4. Cardano (ADA)
Advantages: Academic focus and in developing countries (like Ethiopia).
Ideal for: Government projects (education, records), digital identity.
Disadvantage: Ecosystem still expanding.
5. Stablecoins (like USDT, USDC, or DAI)
Advantages: Stable against the dollar, useful for payments and savings without the volatility of BTC or ETH.
Ideal for: Avoiding inflation, facilitating trade, paying salaries digitally.
Disadvantage: Centralization (in the case of USDT and USDC).
Conclusion:
For a developing country, a combination of stablecoins for stability and currencies like Stellar or Cardano for financial inclusion and digital infrastructure development may be the best option. It depends on the goal: to protect against inflation, attract investment, or develop more efficient public services?