Top 7 Countries That Would Benefit from Digital Currency

We are living in a digital world, where it is usually easier to pay by plastic or your phone than by cash, which used to dominate society. That being said, there are still many countries around the world that rely on fiat cash for payment.

Although we assume there will still be cash-centric societies for years to come, some countries are beginning to edge into the digital realm. Read on to discover the top countries we believe would benefit from digitization.

What Makes a Country a Bad Candidate for Digitalization?

While we truly believe that digitalization is better for almost every country in the world, there are a few where cash might still reign king. This could be for several reasons.

1. Communism

In a country under communism, cash is still a better option for making purchases, as it keeps the government out of your activities. However, the government will still know you withdrew the money, so cash isn’t even fully private, but it is more private than the alternative.

2. Countries Not Set Up for Digitization

Although you will be hard-pressed to find one, there are still some countries that don’t have the infrastructure for digital adaptations—either because internet connections are not widely available or because the climate prevents the creation of good digital infrastructure. Examples include Nepal, where the internet connections are still rocky, and countries like the Central African Republic and South Sudan that are torn by war.

3. Lack of Education

Education is on an upswing worldwide, but in some countries where an education is not provided by the government, it can be difficult for individuals to learn how to work digital payments or identities. While this is becoming less of an issue as the years go by, countries like Guatemala still struggle with getting their citizens an equal basic education, much less one sufficient enough for them to understand digitization. Somalia is another country that would struggle as the literacy rate is only about 41%.

Top Countries That Would Benefit from Digitization

Now that we’ve established what countries won’t be on our list, below are the top countries we think could benefit from digitization.

1. Colombia

Colombia has been rising through the ranks in terms of technology and education, which has led to it having a country that is 70% online. Although tech has come a long way, crime is still relatively high, with a crime index of over 60. Thus, carrying cash in the country could be dangerous, and we think it would be much safer and more convenient for many Colombians to have a digital currency to use.

2. Peru

Like Colombia, Peru has high crime rates, with an index of 74 (out of 90 for those who are unaware of the scale). With 74% of the country having an internet connection, it really wouldn’t be too hard for them to create a digital currency. Unfortunately, there are some concerns about communism in Peru (the politics are increasingly leaning that way) so we aren’t sure whether or not digitization will be a good idea in the long run.

3. Switzerland

A bit of a weird addition to our list, many individuals don’t know that Switzerland has long been a cash-heavy society. While this offers increased privacy, which the Swiss love, changes to the European Union have caused rising crime rates all throughout Europe. While the crime rate is still much lower than Peru or Colombia (25 out of 90) the average Swiss citizen carries around over 10,000 Swiss francs—which can both be inconvenient and dangerous. Thus, it’s probably time for the banking capital of the world to take the plunge and go digital.

4. France

The fourth pick on our list is France, for many of the reasons we mentioned above. France has taken in a large percentage of refugees, which has spiked already high crime rates. With a crime rate ranking of 55 out of 90, France has the highest crime rate in all of Europe—far surpassing Italy. With the internet covering 99% of their country, we have no idea why France hasn’t made the switch to digital currency yet. Even after the COVID-19 pandemic, 59% of French residents still regularly use cash to make purchases.

5. South Africa

South Africa is well on its way to becoming a powerhouse in Africa. But it’s their crime rate that holds them back, as they score 75 out of 90, surpassing even Peru. Much of this violence is related to apartheid, which won’t be resolved by digital currency. But, with 75% of the country having access to the internet, we think a digital currency would help curb the high crime rates.

6. Libya

Surprisingly, 88% of the country of Libya is online—one of the highest rates in all of Africa(Second only to Morocco which is 90%). Unfortunately, the crime rate is a whopping 60, so just like with Peru and Colombia, we think switching from a cash-based society to a digital currency would help tremendously. Especially because only about 15% of Libyan adults have a credit card, meaning all shopping is still done in cash. That being said, card payments are on the increase, so we hope that continues to be the trend.

7. Malaysia

The last on our list is Malaysia, where 97% of the country is online. Although Malaysia has one of the lower crime rankings on our list, it still pulls a 50 out of 90, meaning it isn’t the safest country ever. We think that digitization of currency could help curb some of the crime that remains. Additionally, Malaysia has a very rainy wet seasons, and it would just be nicer not to carry around a bunch of paper which could easily get wet.

Overall, there are many reasons a country should consider a digital currency, such as to lower robbery or mugging rates, and to make it easier for their citizens to move ahead in life. Either way, many of these countries are exploring a digital currency and we are curious to see where they go!