Almost everyone knows about the potential of cryptocurrencies to enable the middle class and rich investors to get richer through crypto trading, but there is not enough talk about the impact or benefits of cryptocurrencies for the poor. Though there are some individuals and organisations working towards the use of crypto and blockchain to help uplift the lives of poor people in rural and other parts of the world, we need more efforts in this direction.
How can blockchain help?
By streamlining government and charitable aid and cutting out middlemen, blockchain can help ensure more transparency and efficiency in the existing systems designed to help the poor. Moreover, the inclusion of crypto payments in this system will ensure that basic financial services and aid is accessible to everyone, everywhere in the world. Here are some other ways blockchain (DeFi) and crypto can help the poor.
One of the biggest barriers between charitable aid and the poor people is the presence of many fraudulent elements. These fraud people create fake charities in order to save taxes or just loot people’s money in the name of charity, making it difficult for the right help to reach the right people. Moreover, there is no clarity about the actual use of funds intended for the poor. Blockchain will bring transparency to charitable aid, such that everything from the source to actual utilisation of funds can be traced by the public, and the government if need be. Also, this will help ensure that every single penny intended for the poor is accountable for and not wasted.
Thanks to cryptocurrencies, which is a borderless, non-regulated digital currency, everyone in the world has access to basic financial services such as digital payments, money transfer, and even loans. People who need money can take crypto loans from those who have it. This is both easy and very secure. And most importantly, it involves a peer to peer process between the lender and the borrower without any middlemen, which also helps cut the cost and processing time.
Libra’s digital payment system is a good example of how a blockchain-based or crypto payment system can help revolutionise payments in general. For instance, people looking to help those in need can use the Libra Coin to donate to their favourite charities and, at the same time, can easily trace how the funds are actually being utilised as every single transaction is stored on the Libra blockchain, which is a public ledger open to everyone.
There are no processing charges or hefty agent fees in the blockchain space. There is only gas fee, which is also very low compared to traditional payment systems.
And last but not the least, cryptocurrencies can help create an overall more efficient charity system for government and non-government organisations that are genuinely trying to help the poor. The blockchain-based system will not only be more transparent but also more efficient in every term, from high security to low cost and reduce the risk of fraud.
Source Link: https://coins.newbium.com/
