Recent Bank of International Settlements Report: The Potential of Bringing in the UnbankedOne key way of bandaging the economy is, of course, through digital currencies and their ability to include the unbanked. The problem of the unbanked has been noted in reports by important financial institutions — most recently, a report by the Bank for International Settlements (BIS). The statistics and insights offered in the report show that we are still far from living in an equitable world, with those in Africa and the Middle East particularly affected by a lack of inclusion. In both regions, the number of unbanked accounts for roughly 50 percent of the population. Women are particularly affected in these regions as well, with the Middle East and Africa, respectively, having 64 percent and approximately 60 percent of women unbanked. Of course, a lack of financial inclusion cascades into other issues, such as less access to education and healthcare.
Digital Currencies Could Provide SafetyOne major aspect of the cryptocurrency market is that it is uncorrelated to other markets — or so it is said. Turning to an uncorrelated asset in a time of uncertainty may be a smart move which, compounded with the fact that it can rope in the world’s unbanked, makes it almost imperative. As a way of banking the unbanked, providing the best cross-border payment solutions, and as a hedge, there is nothing to compare to digital currencies — and key players should take note of the benefits of the technology. Financial inclusion is one of the key drivers of blockchain and cryptocurrency development, and more than a few projects are building solutions to draw in the world’s unbanked — which could not only benefit those who need it the most but also greatly boost the global economy.
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