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Crypto Powers True Financial Inclusion for Those Left Out
Cryptocurrency and DeFi aren’t just virtuous because they promote privacy, censorship resistance and are a better alternative to TradFi and fiat currency. They don’t just provide a means of exchange or an alternative investment. And blockchain can’t just provide us the tools to get to Web3. Crypto is a tool of financial empowerment and freedom – a democratizing financial tool that allows for true economic opportunity, Cointelegraph reminds us.
Access to and use of financial services, known as financial inclusion, is crucial for economic growth and development. Unfortunately, a large portion of the population, particularly in developing nations, still lacks access to basic banking services. The World Bank estimates that 1.4 billion adults worldwide are without access to these services, which limits economic opportunities and perpetuates poverty.
Cryptocurrency, with its decentralized and digital nature, may provide a solution to this issue by advancing financial inclusion. Cryptocurrencies can be stored and transferred digitally and do not require physical banking infrastructure. This enables individuals living in remote or underserved areas to access and use cryptocurrency without the need for a traditional bank branch, providing an alternative solution for those who may not have access to traditional banking or prefer to maintain their privacy.
Beyond providing access to traditional banking services, cryptocurrency can also offer a range of other financial services. For example, cross-border payments can be made more efficient using cryptocurrency, making it an attractive option for migrant workers sending money to their families. Furthermore, it enables access to alternative financial services, such as loans, savings and insurance, without the need for intermediaries, making it more cost-effective for those who use it.
Cryptocurrency can also help improve financial transparency and reduce corruption by creating a decentralized and transparent ledger, which can help to increase trust in financial systems globally. The use of smart contracts can help automate the execution of financial agreements and reduce the need for intermediaries.