You’re probably familiar with cryptocurrency, such as Bitcoin and Ethereum, but have you ever considered its potential impact on financial inclusion?
Although first-world countries have access to advanced financial systems, many developing countries still struggle with traditional banking and financial services. Crypto may hold the key to unlocking financial inclusion for millions of people worldwide.
Here’s why…
The Current State of Financial Inclusion
According to a report published by the World Bank back in 2018, about 1.7 billion adults globally do not have access to a bank account or any formal financial services. That’s roughly one-quarter of the world’s population. Without access to these services, individuals are left with limited options for storing and managing their money, making it difficult to participate in the global economy and improve their financial situation.
Although a few years have passed since this report was published, the numbers are still concerning. Limited access to financial services is often due to barriers such as geographic location, lack of infrastructure, and high fees associated with traditional banking systems. This leaves many individuals excluded from participating in financial activities that could greatly benefit them.
How Financial Inclusion Improves Global Economies
Financial inclusion is a crucial aspect of economic development. It enables individuals to save money, access credit and insurance services, and make payments more efficiently. By having access to financial services, individuals can better manage their finances, plan for the future, and support their families’ needs.
This promotes more long-term economic growth and stability as individuals have more opportunities to invest in education, start businesses, and create jobs. Financial inclusion can also help reduce income inequality and poverty by providing a pathway for individuals to escape the cycle of poverty.
Moreover, financial inclusion can contribute to overall economic growth by increasing consumer spending power and supporting small businesses. With access to credit, individuals can purchase goods and services that they previously couldn’t afford. This, in turn, creates demand for more products and services, leading to increased production and job opportunities.
Small businesses are the backbone of many economies around the world. With limited access to financial services, these businesses may struggle to grow and compete with larger companies. By providing them with financial inclusion, small businesses can access credit and insurance services, enabling them to expand their operations and contribute to economic growth.
Why Crypto Is The Key To Financial Inclusion
While traditional banking and financial services have played a significant role in promoting financial inclusion, they still leave out a large portion of the population. This is where cryptocurrency or digital currency offers immense potential for improving global economies.
With crypto, individuals can have access to financial services regardless of their geographical location, social status, or credit history. Crypto transactions are also faster and cheaper compared to traditional banking, making it easier for individuals in developing countries to participate in the global economy.
The decentralized nature of crypto means that there is no need for intermediaries such as banks or financial institutions. This reduces the barriers to entry and makes it easier for individuals to access financial services.
Crypto also offers a more secure and transparent way of conducting financial transactions. Blockchain technology, which is the underlying technology behind most cryptocurrencies, ensures that all transactions are recorded and cannot be altered. This helps to prevent fraud and corruption, promoting trust in the financial system.
Final Thoughts
Crypto solves the major problem of financial inclusion and Moonrig.io helps users as a free crypto portfolio tracker. With it, you can manage crypto assets for free and get instant crypto alerts. So, if you’re looking to track your crypto investments and stay updated on the latest market trends, Moonrig.io is the perfect tool for you.
