With the inflation that has plagued the global economy, millions of people are looking for a way out to protect themselves and stay afloat. One of the ways they are doing that is through the aid of USDT- a stablecoin pegged to the US dollar.

This translates to mean that each USDT token is equivalent to the value of one dollar. This is why it is said that USDT is a stablecoin as its value is not as unstable as other cryptocurrencies.

With USDT, individuals can send and receive funds, make payments, buy other cryptocurrencies, as well as trade. In addition to its stability, and the versatility it provides to users, it has become a primary tool in combating economic downturns.

In this article, we will explore how USDT is being used to combat the economic challenges in Africa.

What is USDT (Tether)?

USDT is pegged to the US dollar and this provides it with a great form of stability. This is why regardless of the situation of the economy, it still maintains its value.

If you are concerned about staying afloat and avoiding the downturns of the economy, as well as managing the volatility that comes with other cryptocurrencies, then the USDT is your best bet,

If you have to travel to Europe for example, you would need Euros to be able to handle transactions. But traveling with Euros from your destination country to Europe wouldn’t be ideal.

With USDT, you have a stable currency that you can easily swap for Euros once you get to Europe. It’s like a portable means of carrying cash about in a digital manner.

What are the Challenges Facing African Economies?

There are so many challenges facing African countries and the major challenge centers around the flow of money. Below are some of these challenges:

Poverty: Statistics from the World Bank show that more than 400 million people in Africa live below $1.90 daily. This challenge prevents so many people from getting better education as well as taking care of their health.
Inequality: Due to the level of corruption, bad governance, absence of education, and access to healthcare for the poor, there is a divide between the rich and the poor. This further amplifies the level of inequality present in this part of the world.
High unemployment: The rate of unemployment is at a higher level in African countries especially as there is a mismatch between the skills available and the job requirement.
High debt levels: Many African countries are knee-deep in debt and this makes them incapable of accessing infrastructure and essential services.
Limited access to Finance: In many remote parts of African countries, there is limited access to financial services like bank accounts as well as loans. This makes it difficult for them to start businesses and gain financial freedom.
Poor financial infrastructure: The underdeveloped financial market as well as weak regulations surrounding the financial system in African countries makes it a bit difficult to make financial services available.
Inflation: This is a major challenge for African countries as they are unable to afford goods and services. This can further lead to more poverty in the land.

How Can USDT be Used to Combat Economic Downturns in Africa?

Protecting against Inflation: With the aid of USDT, people can now protect their savings from the effect of inflation. Instead of keeping their savings in the currency of the country, they can now keep it in a currency backed by the US dollar- USDT.
Promoting Cross-border Payments: USDT can help to send money across borders and continents with very little charge.
Promoting Financial Inclusion: With USDT, those without a bank account can still access financial services.

Case Studies of how USDT is being used to Combat Economic Downturns in Africa

In Zimbabwe, people use USDT to purchase goods and services on digital platforms.
In Nigeria, USDT serves as a means to send and receive money across continents. This is because USDT is more stable and reliable as a means to transfer funds. It also provides a means to stay above inflation as one can save their assets there instead of naira.
In Kenya, the majority of individuals store their funds in USDT instead of the Kenyan shilling due to its stability and predictability. Also, it offers a means to diversify one’s portfolio as well as reduce the risks associated with the Kenyan shilling.

How to Make USDT More Accessible to People in Africa

To make USDT accessible to more people, the following amongst others must be done:

Educate more people about USDT and the utility it possesses: This will help more people be interested in learning how they can make use of this stable currency to protect themselves from the harsh realities of inflation and economic hardships.
Provide new means for people to buy and sell USDT easily: There are multiple ways by which people can trade USDT. However, the easier it is, the more people will be interested in making use of it.
Partnering with more companies and businesses: For USDT to be generally acceptable, there would be a need for more businesses and companies to accept it as a legal tender. Once they do that, it can be used as a means of payment for goods and services. It can also be used to pay employees as well.
Provide more jobs that allow for payments in USDT.

Conclusion

With all of the challenges facing the African economy, USDT has shown itself as a means to provide a means to combat the downturns and give an edge against inflation. This serves as a means to promote an inclusive future for Africa where financial independence is assured.