How Cryptocurrency Can Accelerate Financial Inclusion
At CoinFlip, we believe that the economy works best when it works for everyone. As it stands, it is not working for the billions of people around the globe that are not served by traditional banks. By providing essential financial services to the world’s unbanked, we are helping families and communities lift themselves out of poverty.
We are passionate about accelerating global financial inclusion by providing access to cryptocurrency. You may be wondering, what exactly is financial inclusion? And, how does access to cryptocurrency tie in? We’re here to explain.
What is financial inclusion?
Financial inclusion refers to the delivery of affordable and usable financial access for unbanked and underbanked people. As of 2017 more than 2 billion people are “unbanked” or do not have a traditional bank account. An additional 1.5 billion people are “underbanked”. They have a bank account but lack access to other mainstream financial services like credit cards or loans.
For many people, traditional banking is costly and inconvenient. Opening costs, transaction fees, travel distance, and the amount of paperwork involved are some of the main reasons why banking is so inaccessible. Being unbanked limits access to other essential financial services like loans and insurance. Essentially, people who are unbanked lack a connection to an ecosystem that allows them to be financially empowered and have better lives.
People without banks tend to use risky measures to hang onto what money they have - like burying cash in the backyard or hiding it under the mattress. Bank accounts help people safeguard against unexpected events such as unemployment, accidents, illnesses, and deaths. Access to loans is one of the most important factors for surviving and escaping poverty. Many consider financial inclusion a fundamental right as it is a precursor to access to education, health care, and economic development. Providing financial services to the world’s unbanked can help families and communities lift themselves out of poverty.
How can crytpocurrency accelerate financial inclusion?
To open a bank account in the United States you need to fulfill a certain amount of requirements. Typically, these requirements include maintaining a minimum balance, proof of identity, and proof of residency. If you do not have a way of fulfilling these requirements, then you are not able to open an account. In the bank’s eyes, these customers are unprofitable and risky.
Blockchain technology is paving the way for a new way of banking - one with virtually no barriers to entry. Cryptocurrency eliminates many of the obstacles by providing easy access to financial services by lowering costs, making it easier to open accounts, and making those accounts more usable.
At CoinFlip, we are building tools that make it easy to use blockchain technology without ever having to step foot in a bank. As a company that provides cryptocurrency ATMs, we allow a gateway between the cash economy and those that rely on crypto. Our ATMs provide a seamless way to buy cryptocurrency with cash, allowing cash-dependent people financial access they did not have before.
Using a CoinFlip Bitcoin ATM is easy. First, find one close to you by using our ATM finder. With more than 1,200 ATMs in the US, we have been careful to place them in areas that are underserved by traditional banks. All that is required to get started on our machines is a digital wallet (we recommend BRD), a phone number, and as little as $5. If you have any problems our 24/7 customer support line is here to help.
Once customers have converted their cash into bitcoin or another digital currency, they have the ability to pay bills online, send money to friends and family at a low cost, and so much more.
CoinFlip allows the unbanked to become their own bank. We are dedicated to empowering people to lift themselves and their communities out of poverty.