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I wonder if there's an opposite term for 'leapfrogging' [1], whereby the pace or focus of technology -- instead of allowing poorer countries to skip trends altogether -- it leaves them behind.

An example of leapfrogging is China's payment system which switched directly from a cash-only system to a mobile-payment system in the span of a decade, entirely bypassing the need for credit cards.

I believe that cryptocurrencies, ironically, are leaving the unbanked populace behind by being a payment-only system instead of being a payment-credit system. If Bitcoin is truly successful and replaces Visa and MasterCard -- both of which also operate as a credit system -- then that's just going to result in slower economic growth in underdeveloped countries.

[1] https://en.wikipedia.org/wiki/Leapfrogging



I get your point. Although (as I have touched slightly upon in the article) several crypto-based donation systems exist and some companies are already working on crypto-based lending.

BTW: the only term I can think of is "leaving behind"


Ideally, we would be able to provide modern financial services backed by first world institutions to underdeveloped countries. An example of this came through a podcast I listen to [1].

For the most part, I am skeptical of cryptocurrencies since they need to solve stability and identity first before tackling credit. An additional problem might also be usability; private-public key pairs should be abstracted away to the end user. As for donation systems, I don't think they have the same network effect as credit systems.

[1] https://www.npr.org/sections/money/2016/09/07/492988779/epis...


"need to solve stability and identity first before tackling credit." that makes sense, yes.

"private-public key pairs should be abstracted away to the end user" what do you mean by that?

"I don't think they have the same network effect as credit systems" What kind of network effects to do you see w/ a credit system?


1. Having something equivalent to account with a username and a recoverable password.

2. Credit systems where you loan money to other people based on other's deposits has a multiplier effect [1].

[1] https://en.wikipedia.org/wiki/Money_multiplier


Now I understand you first point.

Did not know about the Money_multiplier. Cool info, thanks!


Leapfrogging-from-the-front-using-a-trampoline-and-taking-the-trampoline-with-you?


definitely better than my "leaving behind".




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