Blockchain Tools and Cryptocurrency Are Manifesting Today’s Financial Inclusion
What is Inclusion?
Inclusion is the practice of ensuring that people who risk being left out have equitable access to opportunities, resources and tools. It’s about having the same possibilities as everyone else in society and feeling like you belong, regardless of your situation and background. This article will look at why inclusion is so crucial at Coinmetro, a company that serves people from more than 170 countries.
Types of Inclusion
There are various types of inclusion. Personal, political, professional, and financial, to name a few. Personal inclusion refers to a sense of belonging in one’s own life, among friends and family, or even strangers. Being able to influence decisions that affect your life, such as voting in elections or engaging in civil activities, is referred to as political inclusion. Professional inclusion is about feeling that you belong at work, among coworkers and managers. Along these lines, financial inclusion is defined as having access to economic products and services, such as payments, savings, and credit, that are supplied responsibly and sustainably. At Coinmetro, we do our best to make inclusion a way of life.
Inclusion in Today’s World
Inclusion is an issue of social justice that has existed since the dawn of civilization. Unfortunately, many people are still excluded in some way in today’s world. Inclusion can be achieved in a number of ways – from embracing those who are different, to providing everyone with an equal chance to thrive. Access to financial services, resources, and opportunities is a very important part of inclusion. One way to achieve greater inclusiveness is by using blockchain technology and cryptocurrency.
First and foremost, a quick recap of what these are: cryptocurrencies are digital or virtual tokens that rely on encryption to protect transactions and control the generation of new ones. The blockchain technology that underpins cryptocurrency is a decentralized digital ledger that records transactions across many computers in such a way that the record can’t be changed retrospectively without affecting all following blocks and requiring network collusion. Cryptocurrencies are not controlled by governments or financial institutions since they are decentralized. But most are regulated and compliant, ensuring a safe and stable economic environment. These technologies can allow people who don’t have the same opportunities as others to acquire financial access and freedom by maximizing their benefits.
What Impact Can Cryptocurrency Have on Financial Inclusion?
The percentage of a community’s population with access to economic services and products is a natural indicator of financial inclusion. Many individuals will remain underdeveloped if the global economy grows, but they can’t access financial services.
The rise of cryptocurrencies is laying down better financial inclusion worldwide. Cryptocurrencies and digital assets have the potential to bring financial inclusion and accessibility to everyone by allowing them to store value and make payments using their smartphones, for instance. Blockchain can therefore be utilized to enable people who have previously been denied access to traditional financial systems to be more easily understood. It also gives those who have been marginalized an opportunity to participate in the global economy in a way that benefits them. Not having to depend on a particular financial institution and its specific practices gives people the freedom to choose and the means to express themselves in a bigger, more inclusive crypto economic space that treats everyone in the same way.
Compared to the high cost of traditional banking, the transaction fees connected with blockchain are an advantage. Individuals in underdeveloped nations can now conduct transactions and payments without the use of expensive banks, remittance services, or other gateways. The road is now open to saving, lending, investing, and other services that were previously only available to the well-connected. Two of the most essential transformations of our day are cryptocurrency and financial inclusion. They are, of course, closely bound as they can clearly advance financial accessibility for people all around the world.
Despite this, cryptocurrency has not been without criticism for promoting financial inclusion mainly in principle, rather than in practice. However, here are three real-world examples that showcase cryptocurrency’s potential for financial inclusion:
- Hundreds of thousands of people use stablecoins to keep the value of their money in countries with rampant inflation, such as Venezuela.
- Millions of migrant workers from Nigeria, which has the world’s highest cryptocurrency adoption rate, and other emerging economies utilize cryptocurrencies to send money home to support their families.
- In the last year alone, the number of businesses in Argentina who pay their employees in digital currencies has soared 340%, signaling a wave of adoption where both employees and employers seek economic independence and a hedge against the depreciating Peso.
While traditional banking stagnates, the use of cryptocurrency proliferates, and the technology that underpins it constantly improves. The best element, as the instances above demonstrate, is that it is non-discriminatory, treating everyone equally. That is the essence of financial inclusion.
At Coinmetro, we believe that diversity and accessibility are essential, and that cryptocurrency and blockchain are facilitating this with a democratic approach. But in order for this to become a reality for everybody, these technologies will need to reach a larger audience.
This can only be accomplished by developing crypto products that are simple to use and provide value to users.
That is precisely our journey here at Coinmetro.
We invite you to join us in a collective, people-centric financial experience that is redefining the economic progression of our time. If you value inclusion as much as we do, sign up to Coinmetro!