Bitcoin Use Cases: KPMG Report Highlights Benefits for Developing Countries4. August 2023
• KPMG, one of the world’s largest accounting firms, released a report discussing the use cases for Bitcoin (BTC).
• The report highlights how Bitcoin is providing value and how it has benefited people in developing countries with cross-border payments.
• In addition, Bitcoin mining was found to be helpful to rural African communities by providing more consistent and less expensive electricity.
KPMG Report on Use Cases of Bitcoin
KPMG, one of the world’s largest accounting firms, recently published a new report highlighting use cases for Bitcoin (BTC). According to the Big Four accounting firm KPMG, the flagship cryptocurrency consistently provides value despite being an often-misunderstood technology and asset class.
The report says Bitcoin’s technology transformed cross-border payments and particularly benefited people in developing countries who face high transaction fees, logistical challenges and risks from gangs when claiming remittances from abroad. “Bitcoin provides the ability for these payments to take place nearly instantly so long as users have a cell phone and an internet connection, and with far cheaper transaction fees.”
Ukraine Raising Funds
KPMG also says that Bitcoin helped Ukraine raise nearly $70 million when the country was invaded by Russia. “This allowed the Ukrainian government to take possession of these funds nearly instantly compared to using legacy financial rails which would have taken days, even weeks, to clear and settle given the various restrictions imposed as a result of the war.”
Bitcoin Mining in Africa
. The report says Bitcoin mining likewise helped provide more consistent and less expensive electricity to people in rural Africa who rely on small electrical grids that struggle to remain financially viable. “Bitcoin miners are able to co-locate within these microgrids and allow the operators to monetize what would otherwise have been wasted energy. This in turn has provided more consistent and less expensive electricity to residents by increasing the useful load factor on the local grid and decreasing the cost per kWh (kilowatt-hour) by increasing total sales.
The report says Bitcoin also provided financial access to people who do not have bank accounts and those facing monetary restrictions. “In first quarter (Q1) 2021, following a crashing Turkish Lira, Chainalysis reported that crypto asset transaction volume in Turkey ranked 4th globally. This correlation was evidence of crypto assets being an exit ramp to hyperinflation that would otherwise erode people’s savings.