Cryptocurrency: The Solution To Unbanked Adults đŠ
The world struggles with Unbanked Households. Can Cryptocurrency be the problem to an age old banking problem?
In 2021 the world has been accustomed to the concept of Cryptocurrency . Itâs explored by traders, investment firms, banks and even countries. Crypto is used for quick payments without the need of middle men (banks), both to avoid charges and have some form of anonymity when making transactions virtually. While some use it as an investment in the hope that the value goes up (thatâs where I fall). There was always talk of a world someday into the distant future where Cryptocurrency would be the main form of currency for nations. People would get paid in it, they would make transactions with it, and generally use it in the same way we use all other currencies. While it had just remained a murmur of talks as to how this would work, we received the news that the government of El Salvador had purchased 400 Bitcoin. They did this in an attempt to use it as a legal tender for citizens of their country. But why? Itâs because Cryptocurrency offers all people a fair chance at finance.
Why Does This Matter? đ€·ââïž
Not everyone has access to a financial system in terms of banks, and that may come as a surprise to some of us who live in western countries and had bank accounts made for us at birth (to save for university). In the United States, 1 in 9 households remain unbanked as of 2021. 80% of Africa also remains unbanked and it all accumulates to just about 2 billion people unbanked worldwide. Thatâs quite a bit to take in and itâs very sad that this is simply the harsh reality of banking systems all around the world. There is little access to it and minimal financial literacy teaching people how to store their money, and access their local banks. Now letâs take a look at these numbers; As of January 2021, 4.6 billion people accessed the World Wide Web through personal devices. This equates to just about 60% of the world population, and 93% of that 4.6 billion people accessed it through mobile devices (the others remaining as access through computers etc.). Although in contrast with the world population, it doesnât compete all too well, it does still trump the number of unbanked adults. If that large of a portion does have access to the internet and other programs, could we push for a Crypto world? With this knowledge we now know that we can utilize Blockchain and Cryptocurrency to solve the worldâs problem of unbanked adults, by giving people more access to virtual currencies. Now letâs see how that would work. More financially stable countries can purchase large amounts of mainstream Cryptocurrencies to use as legal tenders (which El Salvador is doing as I mentioned before), while others would have to have a slightly different approach to it.
Whatâs A Stable-Coin? đȘ đ§
Other nations should take an approach through Stable-coins. Governments can develop Stable-Coins tied to their national currency and have platforms that are easily accessible to the people of the country, and if they require aid with development, other countries can offer their services to help develop the token and in return receive a certain amount of the countryâs token. They can produce and distribute devices (much like credit card scanners) that allow people to access their wallet, which is assigned to them when they register to their countries platform, and dedicate the required amount to whoever may be on the receiving end of the transaction. This doesnât mean erasing all bank systems and pushing everyone for a new change, itâs simply providing a more accessible form of currency.
Can We Do It?
This is not an easy process by any means. It would require a large sum of money put towards development, and a strong system support such a large change. Not to mention how it would take time for people to adjust to this new setting. But by doing this, they can allow more of the masses to have access to some sort of fair financial system and put a dent in the worldâs unbanked adults problem. đ đŠ
