- According to the Global Findex Database published by the World Bank, a staggering 1.7 billion adults had no access to banking services in 2017, of which 56% or 980 million were women.
- Financial exclusion prevents individuals from enjoying and improving their quality of life.
- Since state actors do not control it, the cryptocurrency's value cannot be manipulated, and it is immune to political uncertainty.
As the internet and smartphones continue to permeate the world, the future will inevitably hinge entirely on being digital. This sweeping change is visible in all aspects of our lives – personal and professional. For instance, one is more likely to find a romantic interest online rather than a local pub. Similarly, it is affordable for companies to set up a remote workplace instead of paying hefty rents and maintenance on office space.
However, the convenience and accessibility that digitization promises have not reached some essential sectors, with banking being one of them. According to the Global Findex Database published by the World Bank, a staggering 1.7 billion adults had no access to banking services in 2017, of which 56% or 980 million were women. Termed as the “Unbanked,” this demographic group resides largely in developing economies.
Several factors are contributing to a burgeoning unbanked population with the major ones being:
- Inability to meet minimum deposit requirements
- High transaction and maintenance costs
- Unable to produce identification documents
- Lack of financial literacy
- Geographical limitations
Financial exclusion prevents individuals from enjoying and improving their quality of life. It also leaves them vulnerable to exploitation and inequality. Furthermore, the disadvantaged cannot partake in basic financial obligations, including savings, loans, and security, thus forcing them to borrow sustenance money from money lenders. This places them in an at-risk position and exposed to fraud, high-interest rates, and cyclical poverty.
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Cryptocurrency Holds The Key
Fortunately, there is one definite and practical solution that can help guarantee financial independence and security to billions of people. The answer is cryptocurrency.
Cryptocurrency, a virtual currency that is underpinned by blockchain technology, is both decentralized and democratic in principle. It does not rely on centralized entities, such as governments and central banks, to manage operations. Instead, it harnesses a vast, trustless network of nodes to verify transactions and secure funds.
Furthermore, cryptocurrency focuses on privacy and anonymity of the user and therefore uses multiple layers of encryption to secure transactions and records. Since state actors do not control it, the cryptocurrency’s value cannot be manipulated, and it is immune to political uncertainty. In fact, in countries experiencing hyperinflation, such as Venezuela and Zimbabwe, the demand for cryptocurrencies like Bitcoin is high.
Below is a list of ways in which cryptocurrency can benefit its users:
- Access to secure and convenient financial services
- Enjoy low transaction costs
- Simple and affordable cross-border fund transfers
- Anonymity and privacy of the user remains intact
- Superior transaction records protect the user against frauds
- Ability to participate in a truly global and digital economy
Most importantly, cryptocurrency syncs well with the individual’s digital lifestyle. They do not need to invest in specialized equipment to store their funds and participate in cryptocurrency trading. They can simply use their smartphones to do so. Moreover, with proper awareness and practice, operating a crypto wallet is not an uphill task. With demand for cryptocurrency increasing, many wallet options are emerging that are user-friendly and secure.
Thus, it can be seen how cryptocurrency can benefit the unbanked and allow them to enjoy financial services on par with or exceed currently available banking solutions.
BitcoinBlink is one company determined to make a change in this domain. By offering regulated and accountable exchange services, the BitcoinBlink cryptocurrency exchange enables users to enjoy secure and value-based services. Through the Blink Stock Token or BSTK, BitcoinBlink delivers a variety of benefits to token holders, including lower fees, monthly lotteries, fund locking, and much more.
To learn more about the BitcoinBlink platform and to register, visit the official website.