How Inflation in Developing Countries Fuels Crypto Adoption

By Scott Cooper, updated May 23, 2025

In 2025, inflation in developing countries continues to challenge their economies. From Argentina to Nigeria to Turkey, millions of people are watching their national currencies lose value at an alarming rate. With traditional banking systems offering little protection, ordinary citizens are turning to cryptocurrencies — specifically Bitcoin (BTC) and Tether (USDT) — as a way to preserve their savings and secure their financial future.

The Inflation Crisis in Developing Countries

Inflation is not a new problem, but in recent years it has worsened. In countries like Venezuela and Zimbabwe, hyperinflation has made local currencies nearly worthless. Even in more stable economies like Egypt or Pakistan, double-digit inflation is shrinking purchasing power daily. For example, in Argentina, annual inflation reached over 200% in early 2025. Saving money in the local currency has become nearly impossible.

In response, many people have turned to hard assets like gold or U.S. dollars. But storing cash is risky, and access to U.S. dollars is often limited. That’s where crypto comes in.

Why USDT and BTC?

Cryptocurrencies offer several advantages in inflationary environments:

• Decentralization: No government can devalue them by printing more.

• Accessibility: All you need is a smartphone and an internet connection.

• Security: Private wallets protect savings from government seizure or theft.

• Borderless: Crypto allows people to send and receive money across borders instantly.

Among thousands of cryptocurrencies, two stand out: USDT (Tether) and BTC (Bitcoin).

USDT: A Stable Dollar Alternative

USDT is a stablecoin pegged to the U.S. dollar. For every USDT, there is supposed to be an equivalent dollar held in reserve. This makes it stable and predictable — unlike volatile cryptos like Ethereum or Solana.

People in inflation-hit economies are using USDT to:

• Hold their savings without worrying about daily price swings.

• Pay for goods and services from international vendors.

• Send and receive remittances from family abroad.

In countries with strict currency controls, like Lebanon or Nigeria, USDT has become a popular underground currency.

BTC: A Long-Term Store of Value

While Bitcoin is more volatile than USDT, it is also seen as “digital gold.” With a fixed supply of 21 million coins, BTC is resistant to inflation. Over time, it has appreciated in value significantly, especially during periods of fiat currency instability.

People use Bitcoin to:

• Protect wealth over the long term.

• Hedge against collapsing national currencies.

• Participate in global finance without bank intermediaries.

In places like Turkey and Ukraine, BTC has become a trusted store of value, especially among the tech-savvy younger population.

Real Stories: Crypto in Daily Life

María, a school teacher in Argentina, used to save in pesos. “I worked all month, and by the time I got paid, my salary was worth less,” she said. In 2023, she began converting her income into USDT using a local peer-to-peer platform. Today, she keeps her savings in a digital wallet and sleeps better at night.

Ahmed, a freelancer in Egypt, receives payment in BTC from clients in Europe. With limited access to foreign currencies through local banks, Bitcoin gives him financial freedom. He can convert small amounts to Egyptian pounds when needed or hold BTC as a long-term investment.

Ngozi, a mother in Nigeria, uses USDT to send money to her sister in Ghana. With traditional bank transfers taking days and charging high fees, crypto lets her send funds instantly for a fraction of the cost.

Government Reactions and Challenges

Governments in developing countries face complex challenges due to inflation in developing countries and are divided on how to handle crypto. Some, like El Salvador, have embraced it — making Bitcoin legal tender. Others, like India and China, have imposed restrictions or bans.

Challenges remain:

• Lack of regulation can lead to scams and fraud.

• Internet access is still limited in rural areas.

• Education about safe crypto usage is still needed.

However, the trend is clear: crypto adoption is growing fast in countries where people have few good alternatives.

Conclusion: A New Financial Lifeline

In 2025, Bitcoin and USDT have become more than just investment tools — they are survival tools. For people in countries suffering from high inflation, these digital assets offer a safe, accessible, and borderless way to protect their hard-earned money.

As crypto infrastructure improves and more people gain access to digital finance, the line between “developed” and “developing” financial systems may begin to blur. In the end, it’s not about speculation — it’s about stability.