Digital dollar money lending Can Crypto Solve the Biggest Problem Facing the Unbanked?

Can Crypto Solve the Biggest Problem Facing the Unbanked?

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– The largest obstacle among the unbanked isnt know-your-customer requirements. Its that they dont have an income 59% cited that as the primary reason why they do not have a bank account, and 18% cited a lack of documentation.

– Many mistakenly draw a line of causation between lack of credentialed identity and lack of banking services. Both are issues connecting to the hierarchy of needs. Rather than a line between both, it is better to visualize the causation stemming from the cycle of poverty.

– On top of that, research has found that 16% of the unbanked in the US cite a distrust of banks as their primary concern. Similar studies put that figure at 32% for Latin America and Central Asia.

– What is needed is the application of the existing KYC/AML policy but with an entirely different methodology one that is proactive in making onboarding easier and less expensive for these populations.

– The minds behind Wallex believe that crypto can help the unbanked through blockchain-driven neobanks. Neobanks originated as an online banking services alternative. But with advancements in blockchain technology and crypto currency integration, it can now offer these services in faster and more user-friendly ways.

– Unlike conventional banks, which are locked into legacy systems, neobanks have the flexibility to take a more innovative approach to KYC. Some neobanks have taken to offering tiered levels of service based on the level of credentialed identity provided by the user.

– It goes beyond onboarding. Greater wealth disparity occurs when people dont have the opportunity to access savings and investment products.

– Crypto can help move value around the economy far more efficiently than at an individual and community level.

– Stablecoins a borderless innovation offer a critical lifeline to those in need. This is where cryptocurrency, more specifically, stablecoins, can play an important role, given that theyre borderless and lack the volatility of other cryptos.

– Through TOKASH Wallexs system for tokenized cash payments the company is working toward being the first CBDC Commercial Bank of Digital Currencies by planning to deploy 12 stablecoins in Q3 this year.

 

 

Digital dollar money lending Can Crypto Solve the Biggest Problem Facing the Unbanked?
Can Crypto Solve the Biggest Problem Facing the Unbanked? 3

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