3 Сrypto-Inspired Ways to Bank the Have-Nots

News / February 21, 2019 / Comments: 0
bank the unbanked

Some of you, guys, may recall our blog story about the value money can buy. Yep, all we need money, alright! Now, here’s another news for you: crypto cash can be even more “heavyweight” as it offers a range of solutions to bank the unbanked. The reason is, accepting cryptocurrency has every chance to reduce the poverty level. Follow the story to learn more about the great “Crypto vs Poverty” stand-off.

Bitcoin versus Poverty

For many people seeking a chance to improve their economic conditions, Bitcoin and the most common altcoins can be a true gift. Blockchain technologies underlying modern cryptocurrencies have enough potential for great social changes. And we’re not talking about classy revolution! When it comes to hapless have-nots living in developing countries, P2P electronic cash can give access to stable financial services. As a result, global poverty can suffer a great defeat. Well, some finance-savvy folks say so. Anyway, existing financial system needs improvements, that’s for sure!

When the global financial system is broken

If there was a financial therapist trying to describe the current condition of our global financial system, it could get the following diagnosis: “I’m afraid I have some bad news for you. Only a little time remains to you.” Teh Drama, indeed!

But, like it or not, our current financial system aka The Global Payments System isn’t efficient. The reason is, it isn’t fair. It works for the benefit of a few. It’s designed to favor the elite, people who are hilariously rich without it. The current financial system gives an average John or Jose no chance to succeed.

The point is, only 1% of the world’s population owns more than a half of the world’s wealth. In other words, the gap between the super-rich and everyone else has become even wider in recent years.

Want to Bank the Unbanked? Build the trust first!

Is there a chance to bank the unbanked? Why, of course! They say, if you have a lock, there’s a key… somewhere around.

However, there’s a serious issue: a potential Richie Rich living in Myanmar or Ghana doesn’t like dealing with banks. Frankly, it’s hard to blame people for trying to save their little money from wandering hands of financial institutions’ clerks. Yep, in recent years, people have got enough reasons to do without traditional banking services.

Most important reason for not having a checking, savings, or money market account

Suppose you like the very concept and really want to reduce poverty and bank the unbanked. In this case, the first to-do thing for you is to build trust between main parties: a blockchain provider (you) and your potential clients.

Now, let’s turn to the main point of this story. It’s about time to take a closer look at prospects crypto-based financial services offer to us mere mortals. So, put your skepticism aside and check out 3 crypto-inspired ways to bank the unbanked!

Way #1: Accessible Financial Services

If you are fond of big & bright pictures of the nearest future, you’ll definitely like the idea of happy instant financial inclusion brought by cryptocurrency to everyone (Gosh bless the Internet). In fact, financial inclusion is a must-have thing to achieve Universal Financial Access (UFA) that is a proposal by the World Bank Group, to be achieved by 2020.

Sure thing, banking the unbanked is a piece of work. Luckily, there are various solutions for providing financial inclusion. For example, Elegro blockchain provider offers its banked and unbanked clients a suite of full-on payment processing solutions running within extra-safe Elegro ecosystem. So, people all over the globe can get their very own pocket banks and enjoy instant payments in crypto and fiat with Elegro crypto wallet. On the other hand, small shop owners can do without cumbersome devices to accept payment for their regular customers. With a user-friendly app, it’s more than easy to transform a smartphone into a full-on POS and accept Bitcoin payments in a flash.

New-age payment solutions will become a part of our everyday life pretty soon. As a result, we’ll get more opportunities to make financial services much cheaper or even manage funds on our own.

Way #2: Bank the Unbanked

Cryptocurrency can be easily used to offer a financial identity to unbanked adults living in developing countries. For instance, only 23% of Myanmar’s population have a bank account. Other residents are less lucky due to wide range of factors including fees, long distance, lack of required documents, and – drum roll please – lack of funds to activate an account. Sad but true.

These days, you can find companies helping the unbanked manage their savings, receive loans, and build credit.

The most important thing here is that cryptocurrency supported by blockchain technology makes it possible for “average” people and small local businesses to create their own financial alternatives in a transparent, cost-efficient efficient, and secure environment!

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Way #3: Stable Money-Saving Solutions for Unstable Regions

Lots of people living in emerging economies, an opportunity to save some money for years to come is crucial. Well, they have enough challenges to meet: high inflation, government corruption, and the risks of assets being seized if funds are stored in local banks.

In this regard, cryptocurrencies such as Bitcoin offer a way to bypass local financial service providers.

And guess what, high volatility could work in coins’ favor. The point is, poor people living in countries with hyperinflation like Venezuela (5000% in 2017) can get an alternative, more stable currency to save.

Wide range of coin projects worldwide are trying to come up with a more stable cryptocurrency and give people a real opportunity increase savings with crypto and cut fund-related risks. A noble goal, indeed!

Instead of Summary

The very idea of transparent, cheap and limitless payments enabled by crypto, sounds great not only to blockchain enthusiasts but also for a wide range of business owners. Believe it or not, but to lift lots of families out of poverty, it’s important to keep a small amount of stable and “fair” assets at hand. Will crypto defeat poverty? Who knows? At least, we could give cryptocurrency a chance to make the world of finance a bit brighter.

Like the story? Want to know more? Ask true blockchain experts about crypto payment processing in a user-friendly environment!

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