The popularity of cryptocurrency in all the big cities of India is not new to us but what about the effect of cryptocurrency on tier 3 and tier 4 cities?
The cities of India are categorized into tiers on various factors. One of them is to understand how the employees will get paid in that particular area. Every town/ city has different needs and charges differently for the same things like house prices, transport fair, etc. So to understand how to treat the employee, and what is enough for them to live comfortably in that city this categorization can be helpful and also for the taxation process.
The RBI has also categorized it into 6 tiers based on the population. Tier 3 category includes a total population of around 20,000 to 49,999 and Tier 4 has a population of around 10,000 to 19,999. Around 70% of India's population lives in rural areas and in the categorization of Tier 2, 3, and 4.
Challenges people from tier 3 and tier 4 cities are facing
There are various challenges that are faced by people living in these areas mainly getting a quality education for most of the children here. In tier 3 and tier 4 cities there are many factors present that can be considered a barrier to getting quality education such as having no financial stability. There are many families which are working on low wages and making barely any money to support their families. Most people seem to be unable to enroll their kids in the best schools and provide the best education.
And because of this issue, it also gets hard to find a good job out of that region as their qualification and skills got limited.
In these situations especially during the time of Covid-19, digitalization became big support to the people living in such areas. People got the medium of learning things as various platforms provide free courses and also cheap internet offers made things much easier than before.
Characteristics of cryptocurrency that can help
Can provide financial stability
There are so many job opportunities in this field, a person who learned through the internet and has some basic experience in this can, later on, can apply for positions like Blockchain Developer, Data Analyst, Etc. People from not-so-well-off backgrounds who didn't have a good-level education can learn these skills and can make high-paying careers directly from their homes.
Safe transactions for people
One of the biggest benefits of cryptocurrency is that it provides secure transactions. As there are so many illegal activities taking place, losing money out of your hand is no big deal. Scammers can easily hack through your systems but it won't happen if you are making transactions through crypto.
In India or any other developing country, corruption is nothing new as it's going on for years and it will be there in the future as well, crypto can play a role in decreasing this number. As the Indian govt. has applied a 30% tax on the capital gain of the user the Indian govt. has the access to double-check the income of the user through Income tax returns. In this way, it is more efficient to track down any form of illegal money.