According to the Global Financial Index, 1.7 billion people over the world do not have a bank account. This means that they are beyond receiving any monetary or financial help from governments or relief institutions. This also means that they are not contributing to the formal economy or business in any way.
According to data, China has the largest population of unbanked people in the world followed by India. One disturbing factor, which has emerged from studies, is that women make up nearly 65% of those unbanked. In other words, of the 1.7 billion unbanked people, women make up nearly 1 billion!
In this article, we are going to look at why and how this problem can be resolved through cryptocurrencies and technology. We would also focus on why financial literacy is a major stepping-stone towards inclusion and justice.
Who enjoys monopoly over Financial Knowledge and Literacy?
Before we discuss how Bitcoin can help in gaining bank accounts and formal finance to the unbanked population of the world, let us look at the importance of financial literacy. Financial knowledge has come to become the privilege of the rich.
In other words, those in authority make it difficult and practically impossible to make financial knowledge easier. This is because they have vested interests and want to control economics and happenings according to what suits them best.
It has been found that the best way to improve financial literacy is through income. When people start earning income, they naturally become more aware of their rights. In the case of Bitcoin, the vast majority of the population is not aware of its benefits. What they are aware of is what governments and those in power are feeding them.
This includes all the negatives associated with Bitcoin, like it being used for illegal transactions, money laundering, arms trading, etc.
Financial Problems, which exist but the unbanked are not aware of
While the unbanked people do not have any say in the economic and financial policies of nations, they are sure to suffer from poor ones. This means that issues like inflation, debt, and others hit the unbanked population much harder that the rest.
The corrupt financial system does not do anything to spread financial awareness. However, the fallouts of poor economic and financial decision-making are thrust upon the unbanked. Most governments are in a hurry to make the transition to a digital economy and financial system.
They do this without disseminating any information or education to the lowest sections of the population. The result? It is these sections, which face the brunt of the corruption from authorities as well as exposure to financial frauds!
How Bitcoin and technology can help in addressing problems
More than just being a new financial currency, Bitcoin and the technology it represents is an idea. It is an idea, which seeks to build financial independence from poor decisions and favouritism of authorities.
Most people do not know that Bitcoin allows you to control your own finances. It cannot be taxed or be subject to outright regulations. It is an open system, which allows you complete control over how you handle your finances. Bitcoin brings empowerment and keeps governments, financial institutions and corporates out of the picture.
This means that it is aimed to be most beneficial to people who are outside the formal banking structure and economies. Bitcoin is also not subject to inflation, which means that your assets hold value, even if a multi-billion dollar bank crashes because of its own wrongdoings.
People who are at the bottom rung of the financial pyramid can use Bitcoin as a safety valve. This is because Bitcoin is a sound investment, which does not depreciate based on external factors. If you wish to know to know more about Bitcoins and investing in Bitcoin, you can visit bitcoin-loophole
Many experts feel that if people come to know the true advantages of cryptocurrencies, the traditional financial order will cease to exist. They also point out that this is the fear that governments and financial institutions have. In the ultimate analysis, Bitcoin can be the emancipation, which can lead to financial fulfilment of a major section of the world’s unbanked population.