[Wise Crypto Life] 21. Financial Inclusion
INVITATION Wise Crypto Life #21
Financial Inclusion
Gather All Coins
[Wise Crypto Life] 21. Financial Inclusion
In this edition of Wise Crypto Life, we will introduce ways blockchain technology can help those who are marginalized in financial services. At the 2021 Seoul Money Show, David Lee, a professor at Singapore University of Social Sciences, said, “Blockchain technology can reduce the financially underprivileged by ensuring that no one is excluded from the market." Let's dive into the concepts of 'financial exclusion' and 'financial inclusion', and how blockchain will change them.
Financial Exclusion
The term 'financial alienation' refers to the inequality of financial service opportunities experienced by the socially disadvantaged.
Most of us enjoy the dazzling development of digital finance and its services on a daily basis. However, as technology advances, the gap between those who benefit from it and those who don't is bound to widen. There are still many countries that lack financial institutions and financial systems outside of Korea.
Many countries are not yet politically and economically stable, have inaccessible financial systems, and often devalue their currencies to maintain power in the country.
Financial Inclusion
Cryptocurrencies can overcome the shortcomings of existing currencies and facilitate 'financial inclusion' since it is decentralized (De-Fi) and cannot be controlled by the government.
Smart contracts can be used to carry out transparent transactions without intermediaries and can be transferred worldwide without going through traditional financial institutions. Because of these advantages, even those without bank accounts or credit cards will be able to make transactions using cryptocurrencies This is also the reason El Salvador decided to adopt Bitcoin as a fiat currency.
Many blockchain platforms already provide small payment and loan services, and many companies that value its potential as a means to resolve the asymmetry of information and infrastructure are incorporating ways to utilize it.
The next step is to assimilate this technology and create a foundation to assist the financially underprivileged engage in financial activities. Although it will take a lot of time and effort, it is a possibility that can better the lives of those who have been marginalized thus far. There is hope that one day, complete financial inclusion will become a reality and everybody will be able to lead a free economic life
댓글
댓글 쓰기