Cryptocurrency And Financial Inclusion

It’s no doubt that we’re in a very prosperous times in terms of wealth accumulation. The online world has provided an abundance of opportunities for generating wealth, unlocking borders that were once before closed.

However, this has primarily being instrumental in certain parts of the world. Elsewhere, access to these opportunities is limited or non existent. I believe the culprits are geopolitical considerations, regulations and most importantly a lack of the right infrastructure.

Blockchain technology is truly a marvel, not in its aspect of being able to eliminate intermediaries (that’s a surplus!) but in its capability of anonymity and transparency. Of course, it’s a double edge sword. Cryptocurrency is also a viable medium of exchange for illegal activities. Nevertheless, the good far outweighs the bad.

Cryptocurrencies
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Access To Capital

Traditionally. You had to fit into certain standards or criteria to be able to access loans. Standards like a stable source of income, solid assets as collateral etc. Not many people were able to fit into that category, so a good proportion of the population where left hanging dry in the air.

Micro Lending

With cryptocurrency and smart contract , peer to peer (P2P) lending platforms have made it possible for a user in London to lend funds to a user in Tripoli without any hassle or ridiculous fees. There is even a thing called ‘self loans’. A certain amount of crypto is put on a smart contract as collateral and then you’re given 80% to 90% of its worth as working capital.

The process is simple and straightforward. Maker on the Ethereum blockchain have been able to issue loans worth more than $200m in just 1 year using this system. However, it’s fairly new and there are some drawbacks. One of them being supply and demand imbalance, there are more lenders than borrowers.

Maker DAO
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In any case, individuals and SMEs are able to access loans efficiently from anywhere in the world and not have to go through the bureaucracy of traditional financial institutions.

Globalization

Cryptocurrency is a digital money that’s intended to be used as a standard medium of exchange in the digital world. The digital world has no borders. Anyone, anywhere can own Bitcoin or Ethereum or Hive. The opportunity becomes that anyone can participate and be a player in this financial game regardless of the background you come from.

Just like anyone on Instagram has the opportunity to be an influencer, anyone in cryptocurrency has the opportunity to be wealthy. The difference is that with Instagram, you’re building social capital whilst with cryptocurrency, its building financial capital. Of course, Terms & Conditions apply!

Globalization of the First Kind Was for the Few. Globalization of the Third Kind is for the Many. The key is public open cryptocurrency, money without borders. Anyone can buy, sell, trade, receive or send it anywhere, anytime. And it's getting set to create an entirely new tidal wave of globalization — this time for the many. - cryptonews.com

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The good thing is that we're still early in the crypto evolution. Blockchain (the technology that crypto is built on) is predicted to be bigger and better than the technological breakthrough of the internet.

In Conclusion

Despite all the controversy, cryptocurrency is making real impact in the real world. Opening doors that were once before closed. With crypto micro lending, people can access loans for a myriad of purposes (fund remote projects for example) without the need to conform to certain bureaucratic standards.

Open, permissionless and borderless networks makes it possible for everyone to participate in this financial game. Where the main barometer for success isn't the laurels or degrees you have but the ability to adapt in this seemingly volatile landscape.