7 things you need to know about Money from the West

Whether it’s dollars, nairas, euros, pesos, rupees, dinar or pounds, there’s no denying that money is a critical piece of OPay News’s global coverage. Have you been staying informed? In this article, we’ll enlighten your knowledge on soaring inflation, questionable loan apps, and the rise of crypto-powered movements.

Let’s get started!

1. Do you know that Argentina holds the world’s highest inflation rate annually?

Inflation has been an ignition point for the 2024 elections in the U.S., where rates have reached 2.9%. But that’s nothing compared to Argentina. Argentines have been contending with high inflation for years now, with recent annual rates around 288%. You can imagine that right?

In the first half of 2024, the country’s cost of living surged close to 80% compared to the same period last year. Little wonder people are looking for extra income wherever they can, including, as it was reported, exchanging eyeball scans for $50 in crypto.

2. Do you know that Filipino foreign workers sent home the net worth of Michael Jordan ($3.2 billion) in the first half of 2024?

Cross-border payments, otherwise known as remittance payments, from the 10 million Filipinos who work overseas are a major source of income for the Philippines, roughly 1% of the country’s GDP. The work of this large labor force is often invisible and sometimes dangerous.

3. Do you know that OKash loan app texts every contact in defaulter's phone to shame them into paying?

The OKash app will text every contact in your phone to shame you, as reported in 2020. Two years ago, Nigeria banned OKash and several other loan apps that engaged in similarly shady and sharky behavior.

These loan apps were also accused of using aggressive and unfair methods to recover loans, such as harassment, invading users' privacy, and charging excessively high interest rates. The government's decision aimed to protect consumers from these predatory lending practices and create a safer financial environment.

4. Do you know that a crypto-libertarian startup city is suing Honduras two-thirds the annual budget of the country?

U.S. investors in Próspera are unhappy with the Honduran government’s treatment of special economic zones, so they’re suing the country for two-thirds of its annual budget, which comes out to a cool $11 billion. (The annual budget of Honduras in 2023 was $15.9 billion).

In other words, they are seeking a staggering $11 billion in damages, which amounts to two-thirds of Honduras’ entire annual budget. To put this into perspective, Honduras’ budget for 2023 was $15.9 billion, making the lawsuit an enormous financial burden for the nation. This legal dispute highlights the investors' dissatisfaction and the potential economic impact this could have on the country.

5. Do you know that content creators in Cuba monetize their videos simply by asking someone outside the country to handle it and send them the profit?

Digital/Online Payment Services like PayPal and Stripe are banned in Cuba as part of the U.S. commercial embargo, and Instagram and YouTube monetization features are unavailable for local creators.

So Cuban creators looking to make money from their videos have to ask someone outside of Cuba to handle it and send them the profit. This issues underscores the financial barriers Cuban creators face, making it even harder for them to thrive in the digital space.

6. Do you know that Japan was slow to adopt mobile money because the country is too safe from thieves and frauds?

Yes, Japan was relatively slow to adopt mobile money compared to other countries, and one surprising reason is its high level of safety and low crime rates. Despite having plenty of cashless infrastructure available, Japan’s low levels of theft and fraud have historically meant that locals feel safe carrying lots of cash around, per the Tokyo Review. Another contributing factor? Its rapidly aging population.

Additionally, the country's robust cash culture, where physical money is trusted and widely accepted, further delayed the shift to mobile money. The combination of safety, convenience with cash, and a well-established banking infrastructure contributed to Japan’s slower adoption of mobile payment systems.

7. Do you know that Myanmar’s National Unity Government (NUG) made its own cryptocurrency to fund revolution?

After a military junta took power in Myanmar in the 2021 coup d’état, a government-in-exile formed by opponents of the military junta, the military restricted use of foreign currency in the country. Hard cash became largely unavailable. In June 2022, the National Unity Government, Myanmar’s anti-coup revolutionary civilian administration, launched its own digital currency to help fund resistance activities.

For more detailed records, this cryptocurrency was launched as part of efforts to bypass the military's control over the country’s financial systems and to raise funds from both local and international supporters. The NUG's move is also part of its innovative strategies to finance resistance, as it seeks to gain resources without relying on traditional banking systems that are under the junta’s influence.