Bitcoin & cryptocurrencies for people without access to traditional banks.
Savings accounts, loans, cheap money transfers - for many people without access to the banking system, this is not possible. Bitcoin and other cryptocurrencies are accessible to everyone with internet access. They promote fair financial services, social justice - and economic growth. Because of their decentralized nature and low transaction costs, cryptocurrencies offer an alternative to traditional banking services and enable people around the world to participate in financial services, regardless of their geographical location or socio-economic status.
Salary accounts, savings deposits, pensions, cash from ATMs, online payments - for most of us, this is part of everyday life. But not for 1.4 billion adults worldwide. This small fifth of the world's population has no access to services from banks or other regulated financial institutions. This means that one in five people cannot simply put their savings into an account, send and receive money or take out loans. The lack of financial services not only makes it difficult to access basic banking transactions, but also hinders economic development and social advancement for many communities. In this situation, Bitcoin and Co. can play a transformative role by enabling access to financial services for unbanked people, thus promoting financial inclusion and social justice.
Bitcoin and other cryptocurrencies can make an important contribution to financial inclusion. This is because they are accessible to everyone globally and without bank intermediaries, regardless of nationality or wealth.
One in five people in the world has no access to banking services. Thanks to cryptocurrencies and decentralized technology, everyone around the world with an internet connection can participate in the financial system.
"Financial inclusion" means that all people have access to financial services on fair terms. Through access to financial services, we can invest in education or health or set up businesses. Financial inclusion helps to reduce poverty as it enables people to invest savings, take out loans and take out insurance. It promotes better income equality and is an important driver of economic growth, as it enables more people to participate in the formal financial system and thus increases the potential for productivity and innovation.
As you can imagine, people without access to a bank face many challenges. They may have to use overpriced personal loans because they are not eligible for a bank loan without a bank account. For payments, they have to resort to traditional money transfers or checks and pay high fees. There is also a lot of bureaucracy: in a remote region, you may have to travel for a day to pick up your paycheck. Moreover, millions of people do not even have the identification documents needed to open a bank account. These barriers lead to financial exclusion and make it difficult to access basic financial services, hindering the economic and social development of many communities.
And how do cryptocurrencies help? Crypto transactions are based on decentralized and transparent blockchain technology and take place from network to network - without intermediaries such as banks. This makes crypto transfers fast, secure and cheap. Everyone can access blockchain-based services such as lending, savings and insurance. Secure digital identities can also be created for identification purposes. In short, with just an internet connection, everyone worldwide can participate in the global economy. Thanks to this innovative technology, financial inclusion becomes a reality and enables people without a bank account to participate in the benefits of digital finance.
Cryptocurrencies also give unbanked people access to digital financial services and connect them globally. This is fair, it supports social justice and the fight against poverty. This in turn promotes economic growth and innovation, which benefits us all. Many are convinced that cryptocurrencies and decentralized technologies represent the future of inclusive finance. These progressive approaches are crucial for a fairer society and help to ensure financial participation for all.
Around 20% of the world's population lacks access to traditional banking services. However, by using cryptocurrencies and decentralized technologies, everyone with an internet connection can participate in the global financial system. Let us show you how.
A mobile wallet, essentially a digital purse, allows users to receive money transfers, pay bills, or withdraw cash at authorized locations.
Borrowers are directly connected with lenders, utilizing the transparency and security features of blockchain. This enables microloans to be issued over the internet to small businesses and individuals, particularly in developing countries.
Platforms leverage the decentralized nature of blockchain to store and manage digital identities. This provides users with a verifiable form of identification. They can securely and transparently share their information with others, enabling them to access loans and participate in the formal economy.
Sources and further reading:
- Cointelegraph: The role of cryptocurrency in advancing financial inclusion
- Givepact: How Crypto Is Driving Financial Inclusion in Developing Countries
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