For the longest time, cryptocurrency’s main claim to fame has been that it can aid unbanked populations and help those who are served poorly in the financial world, but this is not exactly the case. Major banks are getting in the way, not allowing the blockchain to be used to its full extent, and as a result, cryptocurrency simply isn’t doing all it’s able to do.
Changes are predicted for the future, but the only way for these changes to occur is through our efforts to make sure that oppressed and unbanked nations know what digital currency is and help them to understand it. Only through cryptocurrency education can we bring the world of finance back to its feet and grant everyone the opportunity to obtain what is rightfully theirs.
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Pop culture and technology often bring about new words. Following the premiere of “Seinfeld,” people on the street found themselves using the phrase, “yadda, yadda, yadda” when describing the mundane tasks of their daily lives. Now, the FinTech sector has brought about a new term we can all appreciate… “Financial inclusion.”
While a specific definition has yet to be given, on basic terms, we can assume it means, “Finance is included.” In many ways, it can be used to decipher the meaning behind cryptocurrency that we’ve all held in our heads for so long. For many years, we’ve been under the impression that cryptocurrencies can aid unbanked populations and those who lack sufficient monetary means in third-world countries. However, this may not be exactly true.
Modern banking techniques have injured the world. Predatory and faceless, banks have found ways to turn things like $600 payday loans into massive, $2,000 boils wrought with hidden fees. At one point, banks were community-minded and simple. Each town had an individual bank to serve its needs, but it wasn’t long before the “little guys” were bought out, and banking has reached an entirely different level.
Cryptocurrency is a solution for many of these issues. However, virtual currency isn’t getting the chance to step in and appropriately intercede as needed. For one thing, banks still view the blockchain as reminiscent of the Internet; something to possess private networks for the sake of customer security. They aren’t willing to branch out the entire blockchain as it is.
One of the major issues with this is that the unbanked wish to remain anonymous. This could be for a number of reasons: lack of “legal status,” fear or distrust of the banking system, etc. Bank regulations are turning unbanked people off, and the only way to stop this is by opening up the networks and allowing them to be transparent. Allowing money to move anonymously helps poor workers, not criminals and terrorists.
Cryptocurrency can offer a lot, but one of the problems we’re facing is that it presently doesn’t hold liquidity in smaller countries. Many startups are now finding alternative ways to provide nations access to virtual coins through debit cards, phone minutes and similar means. Cryptocurrency is strongly thought of as a tool for the rich, and it’s going to be a long time before the poor, migrant workers of the world truly understand it, but we should still be striving hard to make sure everyone, rich and poor, is able to use it appropriately.
At the present time, cryptocurrency, despite its power and security, is looked at as a useless commodity in many ways simply because it is failing to do all it has promised. However, many are working to change this, and by the end of the year, many fixes are predicted; fixes that will allegedly make the blockchain the Internet’s heaviest and highest-ranking rival.