Cryptocurrencies: The Perfect Solution For Unbanked People

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Staff Writer

Bitcoin has something special that attracts everyone without any reason. Without any reason! Is that right?

No! 

Bitcoin is a kind of Cryptocurrency that has many things to offer you and is full of modern facilities wrapped in the foil of technology. We are living in a world of digital renaissance, and people are accepting the gifts of digitalization with two hands. 

How Cryptocurrency came! Do we know the master process behind it? 

Well, it’s Blockchain.

Yeah! Blockchain is the master stroke behind not only Bitcoin but whole digital currencies. The efficiency of Blockchain with its decentralized process has forced us to like its unmatched process of transacting money with any currency in any corner of this planet. 

Isn’t that interesting? If you find it interesting, you can try it through the bitcoin era.

How Many People Remain Unbanked?

We are living in the same world and have different perspectives and needs. But to fulfill our needs, we need finance and financial facilities. Do we have that? Yes, we have the desire to fly with our financial facilities, but so many people still do not even have access to their banks. 

How can you explain that in today’s world? 

According to the World Bank, there are still 2 billion people left without any banking services. And among these numbers, a third part is from Sub-Saharan Africa. Some of them need a proper and convenient way to go to the bank, and some of them need an ID to have their bank access.

Why Is It Essential To Have Financial Services?

If you have financial services, you have a chance to improve the quality of your life. Suppose you are willing to start a business and you need an immediate loan. You can get loans and mortgages from the financial sector.

Better access to banking means you have new possibilities to get financial rewards from time to time. There was a time in the middle when micro-financial institutions were providing financial facilities to unbanked people. 

But nowadays, large banks are also providing small schemes, and thus the overall interest rate has gone sky high, which is not possible to afford for an unbanked person.

Why Is Crypto The Best Solution?

Now coming to the point about why Cryptocurrency is the solution for millions of unbanked people! 

Cryptocurrency is literally for all, including those who do not have access to good traditional banks. Regardless of income and location, Crypto can provide you with all financial facilities. 

What do you need to have? Nothing much but a smartphone or a laptop and an internet connection. Crypto is the gift of the digital world, and thus you need to have internet access for sure. Crypto does not care if you are rich or not; it has the ability to provide access to all. 

With a smartphone and internet connection, you can start using Bitcoin by sending and receiving money. It is fast and cheap and has better security than any traditional banking process. Moreover, the technology is very flexible, and the entry process has fewer barriers

Coming to the identification, banks mostly suffer with this process. Many people cannot show their proper identity to the banks, and that is a barrier for the banks to help the unbanked people. Crypto does not care about KYC verification and provides a unique identity digitally. 

Cross-border payments are very hectic, including high taxes. If you want to send money to Africa, you will have to consider an almost 10% transaction fee for that. Moreover, the Intra-African money transferring process seems to be more expensive. The fee can rise up to 17%, which is quite a headache for unbanked people. 

On the other hand, Bitcoin has a very low transaction fee, and you can send money anywhere in the world.

To Conclude

After considering all the above-mentioned problems of the unbanked people and the facilities provided by Cryptocurrency, what do you think the unbanked people go for! 

Mostly, it is not possible for all unbanked people to manage their finances without any financial service provider, and there comes Bitcoin as a lifesaver. The market of Cryptocurrency is volatile, but this is still the best option for the unbanked people with its other benefits.

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