The unbanked population of the world is roughly 1.7 billion. That’s a little less than 2 billion people without the opportunity to participate in the global economy. By providing digital payment methods for this population, we are able to help them experience the same opportunities for growth while reducing the dependency on cash payments and ensuring a more honest and secure global market.
How do digital payments provide financial safety?
One of the biggest dangers that the unbanked population subjects itself to is inflation. By keeping their funds hidden away as cash, there is no added interest rate that supports its relevance.
Rob was a sales manager in a car shop in Texas back in the 80s. His animosity towards the local banks forced him to save his money in his own house, stored away in a safe.
Over a course of 30 years, Rob was able to save around $400,000 as cash. But the problem was that he couldn’t buy nearly as much with the current $400k as he could in the 80s. Where did he go wrong?
You see, Rob forgot about inflation and how it affected the USD over the course of 30 years. $100 in the 80s had the purchasing power of $300 of today’s money, due to the inflation rate of 3%. Had Rob deposited his funds in a bank, it would have provided him with around 4% interest rate. Even if it is next to nothing in terms of growth, it would still have made him at least 20% more than he has currently.
This is the danger that the current unbanked population is subjecting itself to. There is no guarantee that a dollar today will be worth a dollar tomorrow.
Larger market exposure
The 21st century is all about the internet. Virtually all types of commerce have moved to the digital platform, allowing people to purchase goods from halfway across the world with a single click.
The unbanked population is deprived of this opportunity. Should digital payments be introduced in their lives, they’d have a much larger market exposure, therefore funneling more funds in the global economy, as well as developing their local ones.
Modern digital payment options
Much like digital payments were unheard of in the 1980s, and the same goes to the blockchain a little over a couple years ago.
Nobody truly understood the value of blockchain until 2017, when the market blew up. To be as simple as possible, here’s a quick 1, 2, 3 to explain it.
- Nick wants to transfer some funds from his account to his friend’s account
- Kevin, who has a very strong computer, dedicates its power to process it as soon as possible.
- Nick is able to transfer the funds with minimal fees, and maximum speed. Kevin is rewarded for his participation.
Although it sounds like there are middlemen involved, it truly is not. The blockchain introduces a whole new P2P transaction option.
Many companies are in the process of adopting this technology to help the unbanked population, and AssetStream is one of the most promising ones.
AssetStream aims to not only provide digital banking opportunities for everyone but also ensures the safety of the platform. By providing a stablecoin (a coin which is backed by fiat currency), AssetStream provides the full scope of the blockchain value (speed, small fees, security, privacy), while also guaranteeing fund protection for its users.
Are you ready to go digital?
The time to participate in the digital economy of the future is now. Are you looking for banking options to benefit from the opportunities of the 21st century? Then why not go for the most modern and beneficial platform of them all?
The blockchain is here to stay, and the 2017 popularity boost has confirmed that. Banks all over the world are starting to adopt it, and there is virtually no industry that is not interested in it. Visit AssetStream’s platform and see for yourself how the company can provide security in a digitally vulnerable sector, as well as hundreds of opportunities for those willing to grow themselves or their business.
Disclaimer: This is a guest article. The views, opinions and positions expressed within it are those of the author alone and do not represent those of Cryptopolitan. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.