Andreas Antonopoulosone of the leading experts and popularizers of Bitcoin, held a conference in London a few years ago talking about how much BTC (Bitcoin ndr) can help billions of the so-called “underbanked” to have their financial independence.
The financial inclusion factor is decreasing over the years: from over 7 billion underbanked in 2019, we are now at less than 3 billion also thanks to the fact that Bitcoin and cryptocurrencies can offer financial access to people who would otherwise not have the opportunity to participate in the traditional banking system. And this is particularly relevant in regions of the world with limited access to financial services.
Often we European citizens, or in any case inhabitants of Western-style territories, do not remember how privileged we are. As proof of this, a recent survey carried out by the crypto exchange Bitget confirms that Italians mostly see Bitcoin as a mere investment asset.
In fact, we typically have no problems opening a bank account, we don’t have major censorship problems, we don’t live in totalitarian regimes, which is why we have reduced Bitcoin to just an asset in which to invest.
But his decentralization and security, due to blockchain technology, prevent manipulation and centralized control by one entity or government and these become fundamental elements for populations forced, for example, to live under dictatorial governments.
Another interesting and useful aspect is represented by the fact that Cryptocurrencies have the potential to simplify international transfers offering several advantages compared to traditional methods. First, the elimination of geographic borders and financial intermediaries allows for faster and more efficient transfers. Transaction processing times are minimized, especially when using blockchain with fast confirmations.
Additionally, cryptocurrencies reduce the costs associated with international transactions. Because they don’t involve traditional financial institutions, such as banks and payment intermediaries, the fees are generally lower. This can be particularly beneficial for people sending money across international borders, allowing them to save on fees and unfavorable exchange rates.
A common use case is migrant workers sending money to their home countries. By using cryptocurrencies, you can avoid the high costs associated with traditional transfer services and benefit from faster transfers.
Other examples include international trade, where cryptocurrencies can simplify financial agreements between companies in different countries, and crypto crowdfunding (ICO, IDO, launchpad, etc…) globally, where financiers can contribute using cryptocurrencies without problems related to national borders.
Finally, another aspect that should not be underestimated is that cryptocurrencies offer a greater level of privacy compared to traditional transactions, mainly thanks to blockchain technology and the pseudonymity feature. While traditional transactions can be traced through central financial institutions, cryptocurrencies use cryptography to ensure user anonymity. For example, Bitcoin uses pseudonymous addresses, which are not directly associated with the user’s identity.
However, it is important to note that the level of privacy varies between different cryptocurrencies. Some, like Monero and Zcash, are specifically designed to offer a higher level of anonymity and coin fungibility, making it more difficult to trace the origin and destination of transactions.
A practical example is represented by corporate transactions. By using cryptocurrencies with a focus on privacy, companies can protect sensitive information, such as transaction details, from potential competitors or third parties. Likewise, individuals can benefit from privacy in personal transactions by avoiding disclosing sensitive financial information during online payments.