While cryptocurrencies have been around for a number of years, digital assets are really only now being seriously considered as financial tools that can benefit not only individuals but also entire economies.
By offering easy and instant online access to financial services for anybody with an internet connection, cryptocurrencies have immense potential for social and economic growth even in poorer countries.
Benefits For Poor Countries
Shocking as it may seem, more than a third of our world’s population still does not have access to even the most basic banking services. This means having to go without loans, checking accounts, etc.
The result is often that people living in poorer countries turn to dangerous banking and lending solutions.
Since cryptocurrencies are borderless and decentralized, apps with access can be used freely all over the world. At the very least, crypto technology makes it possible for everyone to become financially better connected.
Lower Transactional Costs
Since cryptocurrencies aren’t housed in an actual building like a bank or other traditional financial institution, the costs associated with dealing are extremely low, and cryptocurrency guides highlight this fact.
With no overheads to be accounted for, the increase in savings translates to low fees.
Essentially, lower transactional costs mean greater efficiency in exchange as well as an increasing volume of the number of transactions. What’s more, crypto eliminates the need for a physical space where people convene to transact.
Since cryptocurrencies cannot be manipulated in any way from an accounting point of view, there’s a diminished risk of financial fraud and corruption.
Again, this means that underdeveloped countries now have a much bigger chance of making their way into a meaningful financial global game.
Opportunities For Business
Economists agree that there has never been a more opportune time to do business than right now.
Cryptocurrencies are a leading contributing force in terms of how entrepreneurs can be expected to do business in the future. Crypto technology can help new business owners receive payments from literally any currency region in the world.
Ultimately, the goal is to help small and medium-sized businesses, especially in poorer countries, to become connected financially and to experience new connectivity freedom together with the rest of the global economy.
A Greener Way
Contrary to popular belief, our present global system of financial networks uses more energy than crypto networks consume. One needs only consider the power engulfed by the number of bank branches, ATMs, data centers, etc., to realize that this is true.
Crypto technology has the potential to hedge financial portfolios against many risks. This also happens to be the main driving force behind the popularity of this type of technology across exchanges.
Future Of Banking
Whether present-day bankers want to acknowledge the fact or not, crypto technology is the future of the banking industry.
This is because it has the capacity to completely transform those businesses that do not have access to traditional banking systems and other financial institutions.
Banks would do well to embrace crypto technology during the early stage of the game in order to avoid falling behind.